The latest property curbs in Singapore have had a cooling effect on the real estate market, leading to a decline in home prices for the first time in three years during the second quarter.

Flash estimates released by the Urban Redevelopment Authority on Monday revealed that private property values slid by 0.4% compared to the previous three months, which had seen a rise of 3.3%. This marks the first decrease since the first quarter of 2020.

The property market had previously enjoyed a robust period, defying a global slowdown experienced in cities like London and Shanghai. However, the momentum appears to be easing as the government implemented measures to prevent excessive price increases. In April, stamp duties for foreign buyers were doubled to 60%, the highest among major markets, and levies for second-home buyers were also raised.

Morgan Stanley analysts Wilson Ng and Derek Chang noted in a Monday report that the recent moderation in prices was likely driven by the latest round of property cooling measures in April. They expect prices to gradually increase for the remainder of the year, projecting a 5% growth for the full year.

Although home prices declined in the last quarter, transaction volume increased by approximately 16% compared to the previous three months, according to the Urban Redevelopment Authority. In May, home sales reached a one-year high as the supply crunch eased due to new development launches.

In a Facebook post following the release of the figures, Singapore’s Minister for National Development Desmond Lee acknowledged the signs of moderation in the property market and emphasized the government’s efforts to increase housing supply to meet demand.

The fervor in Singapore’s property market has also extended to public homes. Housing & Development Board resale prices reached a new high in the second quarter, rising by 1.4% compared to the previous three months, marking the 13th consecutive quarter of gains. In June, a public housing unit was even resold for a record S$1.5 million ($1.1 million).

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With its continuous progress in the real estate sector, Hyderabad has become a regular feature in headlines, captivating the attention of builders and developers from various cities. The state capital’s remarkable growth, particularly in commercial space absorption and opulent residential properties, has prompted numerous professionals to embark on study tours to explore the city’s potential.

A delegation comprising 250 members from Maharashtra is scheduled to visit Hyderabad in the near future, following a previous visit by the Youth Wing of the Maharashtra Builders Association last year. Shedding light on this trend, G Rami Reddy, the National Secretary of CREDAI, emphasized the phenomenal growth of Hyderabad in the past seven years. Industries spanning pharmaceuticals, IT, life sciences, and more have witnessed rapid progress, which has, in turn, fueled positive advancements in the real estate sector.

Hyderabad’s skyline is adorned with towering skyscrapers, ranging from 30 to 50 floors, establishing the city as a hub for high-rise structures after Mumbai. Presently, Hyderabad stands as the most vibrant and dynamic city in the country, boasting an array of luxurious villas priced between Rs 3 crore and Rs 30 crore, as well as apartments ranging from Rs 5,000 to Rs 15,000 per square foot. No other city offers such diverse options, stated Reddy.

Innovative construction technologies, such as complete aluminum formwork, have gained popularity, attracting builders seeking to learn about advanced methodologies and construction practices. The allure of clubhouse designs in gated communities has also captured the interest of architects, builders, and contractors. Equal attention is devoted to landscaping in these projects.

During these study tours, professionals meticulously examine residential apartments, high-rise structures, and lavish villas. Discussions encompass all aspects, from foundation to finishing touches, as well as the implementation of cutting-edge technologies. Additionally, market potential is explored in-depth.

Reddy highlighted that the transparency in obtaining building permissions is a significant differentiating factor in Hyderabad. Unlike many major cities, there is no political corruption involved in the process. Magnificent buildings are also sprouting up in rural areas across Telangana, exemplified by stunning structures in Chityala village, featuring elevations, glass facades, and solar fencing. The increased affordability of the people in Telangana has undoubtedly contributed to these developments, he added.

Builders from Delhi NCR, Kolkata, and other regions are not only from Maharashtra but also showing keen interest in visiting Hyderabad to study various aspects, including commercial spaces, warehouses, and residential structures, according to V Rajashekhara Reddy, the Secretary of CREDAI Hyderabad.

Hyderabad’s infrastructure stands as its biggest advantage. Many cities grapple with challenges arising from inadequate infrastructure or poor planning. However, Hyderabad’s well-constructed link roads, flyovers, and underpasses have alleviated traffic congestion, making it an appealing destination for builders, concluded Reddy.

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NAVI MUMBAI: Cidco, the City and Industrial Development Corporation, has recently allocated 46 plots to the project-affected persons (PAPs) of Navi Mumbai International Airport (NMIA).

The allotment took place through a computerized draw held at Cidco’s headquarters in CBD Belapur. Among the allocated plots, 23 are under the rehabilitation and resettlement (R&R) scheme, while the remaining 23 falls under the 22.5% compensation scheme. These plots have been granted to the villagers who relinquished their land for the airport’s construction.

Cidco is overseeing the development of NMIA, covering an area of 1,160 hectares, by acquiring land from 10 revenue villages in Panvel Taluka, Raigad district. As part of the process, the affected villagers have been relocated from their ancestral homes to rental houses. Cidco has offered rehabilitation packages and additional benefits to approximately 3,000 project-affected families under the state government-approved 22.5% scheme.

The Pushpak Nagar Node, situated adjacent to Ulwe, has been developed to facilitate the rehabilitation of the project-affected persons. Landowners who received allocated plots for constructing their new homes were provided Rs 1,000 per square foot. Additionally, a rent of Rs 500 per square foot is being disbursed for a duration of 18 months, a one-time special assistance payment of Rs 36,000 has been provided, and those who surrendered their farmland received a one-time agriculture compensation of Rs 1,24,500. Moreover, Cidco has disbursed transportation allowances of Rs 50,000 to each project-affected person.

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The Securities and Exchange Board of India (Sebi) has proposed a new regulation that could create difficulties for sponsors of real estate investment trusts (REIT) and infrastructure investment trusts (InvIT) seeking an exit option.

Under the proposed amendment, sponsors of REITs and InvITs will be required to maintain a minimum unit holding throughout the lifespan of the investment vehicles, with a reduced b scale. Sebi aims to ensure continuous alignment of unit holders’ interests with the sponsors of REITs and InvITs.

Currently, Sebi regulations stipulate that sponsors must hold a minimum of 15% unit holding for at least three years from the date of listing the units.

The proposed changes are part of a broader set of amendments being introduced by Sebi following its board meeting on Wednesday.

In addition, Sebi has decided to grant board nomination rights to unit holders of REITs and InvITs. The regulator now proposes that unit holders with 10% or more unit holding, either individually or collectively, can nominate members to the board.

Real estate industry experts view these regulatory decisions as timely and aligned with the goal of protecting the interests of minority unit holders, while enhancing transparency and accountability.

In India, there are currently four REITs listed on the stock exchanges. These investment vehicles have gained popularity among retail investors as a means to participate in the growing commercial real estate market.

Anuj Puri, Chairman of Anarock, expressed his support for the proposed change in sponsors’ minimum unit holdings, emphasizing that it would greatly enhance accountability. He also praised the move to grant significant unit holders nomination rights, as it would give investors better control over their investments.

However, Sebi’s proposal to require sponsors to maintain their investment may be seen as counterproductive, considering that REITs and InvITs are often regarded as long-term asset monetization vehicles.

Blackstone, a prominent private equity firm and sponsor of Embassy Office Park REIT and Nexus Select Trust, has been gradually reducing its stake in Embassy REIT over the past four years.

Samantak Das, Chief Economist, and Executive Director at JLL, dismissed concerns about the regulation, stating that having “skin in the game” is beneficial. He believes that this requirement will ensure active interest in the success of investment vehicles.

Apart from these changes, the Sebi board has also proposed introducing a provision for self-sponsored investment managers for REITs and InvITs. This would enable mature and independent investment managers to emerge and offer an additional exit option for the sponsor. However, the minimum unit holding requirement would still apply in this case.

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India’s leading property markets have achieved an unprecedented milestone in residential property sales during the April-June quarter. Anarock, a renowned property consultancy, reported that a staggering 115,000 homes were sold in the past three months, surpassing the January-March quarter by one percent.

In comparison, the previous year’s figures of 84,940 units sold during the same period were exceeded by an impressive 36 percent, highlighting the market’s resilience despite global economic challenges and earlier home loan rate hikes.

Anuj Puri, Chairman of Anarock, emphasized that the housing market has yet to experience the full impact of the rate hike and global economic headwinds, yet the momentum remains strong even in the second quarter of 2023.

Interestingly, Mumbai and Pune accounted for over half of the total homes sold during this quarter, with both cities contributing 51 percent to the overall sales. Pune witnessed a remarkable 65 percent surge in annual sales growth. Moreover, these two cities outperformed their own sales numbers from the January-March quarter by four and ten percent, respectively, while other cities experienced a decline.

Additionally, Mumbai and Pune observed a substantial influx of new residential properties, with 43,490 and 21,350 launches, respectively. These launches accounted for 63 percent of the total residential projects introduced throughout the country during the April-June quarter. The overall pan-India launch scenario impressed industry experts as well, considering the 82,150 units launched in the quarter represented a 25 percent year-on-year growth, despite a slight six percent dip on a quarterly basis.

Dhaval Ajmera, Director of Ajmera Realty and Infrastructure, attributed the robust housing demand in Mumbai to ongoing infrastructural developments, the need for quality homes, and a redevelopment boom in the MMR region. In Pune, improved connectivity, infrastructural growth between Mumbai and Pune, and advantageous locations contributed to the growth of mid-segment housing and commercial space segments.

The surge in sales can be attributed to an average eight percent price increase across the seven property markets. Hyderabad recorded the highest price hike at 10 percent, while Bengaluru, NCR, and Mumbai reported a nine percent rise in prices. Mid-segment homes, priced between Rs 40 lakh and 80 lahks, constituted nearly 31 percent of the total homes sold during the quarter.

Anarock noted that the sales blitzkrieg during the quarter resulted in reduced inventory levels across all cities. Available inventory declined by two percent, dropping from 625,000 units in April-June 2022 to 614,000 units at present. Notably, NCR witnessed a significant inventory decline of 21 percent.

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According to the National Housing Bank (NHB), property prices increased in 43 out of 50 cities during the fourth quarter of the fiscal year 2022-23, as reported in the 50-city Housing Price Index (HPI).

Kolkata emerged as the front-runner among major metros with an 11 percent surge, followed by Ahmedabad at 10.8 percent, Bengaluru at 9.4 percent, Pune at 8.2 percent, and Hyderabad at 7.9 percent. Chennai, Mumbai, and Delhi experienced more modest increases of 6.8, 3.1, and 1.7 percent, respectively.

However, the report also indicated that seven cities saw a decline in property prices. Delhi, Navi Mumbai, Kochi, Coimbatore, Raipur, Faridabad, Bidhan Nagar, and New Town, Kolkata, witnessed a sequential decrease in prices during the quarter. Raipur had the highest decline at 6.7 percent, primarily due to projects initiated by the Raipur Municipal Corporation for the Economically Weaker Sections (EWS) and Low-Income Groups (LIG).

The HPI, which gathers property price data from banks and housing finance companies, revealed an annual increase of 5.8 percent during the fourth quarter of fiscal year 2023, compared to 5.3 percent the previous year.

The annual price changes varied significantly across cities, ranging from a substantial 19.6 percent increase in Gandhinagar to a notable slump of 12.9 percent in Ludhiana.

In terms of sequential trends, the 50-city index grew by 1.3 percent in the January-March 2023 period, slightly lower than the 1.5 percent growth in the previous quarter.

Both under-construction and unsold ready-to-move-in properties experienced an annual price increase of 11.7 percent in the March quarter, compared to 4.8 percent in the corresponding period the previous year.

The NHB highlighted that home loan rates remain lower than pre-pandemic levels, contributing to favorable affordability in the housing market.

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