Posted by goldenpeace on 28-Apr-2009
Standard & Poor’s Global Property Index tumbled by a fifth in the first quarter of 2009, after a rally in emerging market real estate stocks failed to offset a lingering depression in more mature markets.
According to a report released yesterday, the S&P Global Property Index fell 19.8 per cent between January and March, as whispers of a property market revival were drowned out by worldwide recession worries. The S&P Developed Property Index, a large constituent of the global index, dropped 22.2 per cent on the back of big market declines in North America. Europe and Asia Pacific suffered falls of 18.2 and 15.6 per cent, respectively. Austrian property stocks posted an extraordinary quarterly return of 20.3 per cent, largely due to volatility in the share price of Immoeast AG , whose price has soared 123 per cent in Q1.
The picture was somewhat healthier in emerging markets, with the S&P Emerging Property Index posting a 7.8 per cent return. Israel was one of the strongest performers in this sector with a 33 per cent return. ‘It has been a tough first quarter, with the comeback in emerging market indices providing little relief overall,’ said Alka Banerjee, vice-president of S&P Index Services.
Source : Business Times - 28 Apr 2009
Tuesday, April 28, 2009
Govt unveils sustainable development blueprint for next decade
Posted by goldenpeace on 28-Apr-2009
Despite the economic downturn, Singapore is soldiering on with a new blueprint for sustainable development for the next 10-20 years.
Under the plan, at least 80 per cent of all buildings in Singapore will be energy-efficient by 2030.
This is part of a grand plan, which aims to make Singapore a “lively and livable” city without straining natural resources. Some $1 billion will be spent for the first five years.
Up above some flats in Serangoon, solar panels are tapping the sun’s energy, which is then used to power the common areas below. The Housing and Development Board (HDB) said that so far the results are promising.
Dr Wong Liang Heng, HDB’s deputy director for sustainability & building research, said: “It’s actually part of HDB’s big plans to try to reduce energy consumption for HDB estates. However, solar… is still quite expensive, but we still want to test it out to learn more about this technology and also to build capability in Singapore.”
HDB will roll out this project to 28 existing precincts and two new ones. It will be the largest solar test bed programme in Singapore, costing some S$31 million.
This pilot project is part of an ambitious plan to reduce energy consumption by a third by 2030 and to raise the overall recycling rate and public transport share - both to 70 per cent.
Half a billion dollars is available to retrofit public sector buildings, while the private sector can tap on a S$100 million incentive scheme to do the same.
All new government sector buildings will have to achieve the highest Green Mark accolade - the Green Mark Platinum award.
And buildings in four new strategic growth areas will also have to meet the highest Green Mark rating. These areas are Marina Bay and Downtown Core, Jurong Gateway in Jurong Lake District, Kallang Riverside and Paya Lebar Central.
The requirement will reduce the areas’ energy consumption by 25 per cent. The sustainable development road map allows for the building of more cycling tracks and greater use of clean transport and technology to make this possible.
For example, S$43 million will be invested into implementing cycling networks in selected HDB towns over the next five years.
The blueprint was unveiled by the Inter-Ministerial Committee for Sustainable Development, chaired by both National Development Minister Mah Bow Tan and Environment and Water Resources Minister Yaacob Ibrahim.
The committee, set up in January last year, consulted extensively with various groups to put together a clear national strategy in the context of emerging domestic and global challenges.
Mr Mah said: “This is a long-term commitment, we are facing economic difficulties, there is a downturn at the moment, but we need to launch this blueprint even in this not so good time because sustainable development is a long-term challenge.
“What we enjoy today is what was put in place many years ago. So if you want to face the challenges of the future, you really have to start now, you really have to start today and it’s going to take us a long time.”
Dr Yaacob said: “These targets are what we have worked out from the bottom up with various stakeholders and we are confident that we can achieve this. We will take a five-year period to review as we go along because things may improve, technology may offer new solutions and then we will revise it accordingly.”
The spinoff to all this is a “green collar workforce”, which will see some 18,000 “green specialists” trained over the next 10 years in the development, design and maintenance of green
buildings.
They will form the core of the new “clean tech” sector, which will develop through an R&D park at Jalan Bahar for test-bedding such technologies.
Source : CNA - 27 Apr 2009
Despite the economic downturn, Singapore is soldiering on with a new blueprint for sustainable development for the next 10-20 years.
Under the plan, at least 80 per cent of all buildings in Singapore will be energy-efficient by 2030.
This is part of a grand plan, which aims to make Singapore a “lively and livable” city without straining natural resources. Some $1 billion will be spent for the first five years.
Up above some flats in Serangoon, solar panels are tapping the sun’s energy, which is then used to power the common areas below. The Housing and Development Board (HDB) said that so far the results are promising.
Dr Wong Liang Heng, HDB’s deputy director for sustainability & building research, said: “It’s actually part of HDB’s big plans to try to reduce energy consumption for HDB estates. However, solar… is still quite expensive, but we still want to test it out to learn more about this technology and also to build capability in Singapore.”
HDB will roll out this project to 28 existing precincts and two new ones. It will be the largest solar test bed programme in Singapore, costing some S$31 million.
This pilot project is part of an ambitious plan to reduce energy consumption by a third by 2030 and to raise the overall recycling rate and public transport share - both to 70 per cent.
Half a billion dollars is available to retrofit public sector buildings, while the private sector can tap on a S$100 million incentive scheme to do the same.
All new government sector buildings will have to achieve the highest Green Mark accolade - the Green Mark Platinum award.
And buildings in four new strategic growth areas will also have to meet the highest Green Mark rating. These areas are Marina Bay and Downtown Core, Jurong Gateway in Jurong Lake District, Kallang Riverside and Paya Lebar Central.
The requirement will reduce the areas’ energy consumption by 25 per cent. The sustainable development road map allows for the building of more cycling tracks and greater use of clean transport and technology to make this possible.
For example, S$43 million will be invested into implementing cycling networks in selected HDB towns over the next five years.
The blueprint was unveiled by the Inter-Ministerial Committee for Sustainable Development, chaired by both National Development Minister Mah Bow Tan and Environment and Water Resources Minister Yaacob Ibrahim.
The committee, set up in January last year, consulted extensively with various groups to put together a clear national strategy in the context of emerging domestic and global challenges.
Mr Mah said: “This is a long-term commitment, we are facing economic difficulties, there is a downturn at the moment, but we need to launch this blueprint even in this not so good time because sustainable development is a long-term challenge.
“What we enjoy today is what was put in place many years ago. So if you want to face the challenges of the future, you really have to start now, you really have to start today and it’s going to take us a long time.”
Dr Yaacob said: “These targets are what we have worked out from the bottom up with various stakeholders and we are confident that we can achieve this. We will take a five-year period to review as we go along because things may improve, technology may offer new solutions and then we will revise it accordingly.”
The spinoff to all this is a “green collar workforce”, which will see some 18,000 “green specialists” trained over the next 10 years in the development, design and maintenance of green
buildings.
They will form the core of the new “clean tech” sector, which will develop through an R&D park at Jalan Bahar for test-bedding such technologies.
Source : CNA - 27 Apr 2009
Sunday, April 26, 2009
Good time to buy?
Posted by goldenpeace on 26-Apr-2009
Real estate worldwide has been hard hit by the global downturn.
Home prices in some foreign cities have fallen sharply, as a result of tighter credit and the difficulty some owners face in servicing their mortgages. Their fall, coupled with the relatively strong Singapore dollar, has made it more attractive for Singaporeans to land their dream home overseas.
Investing in a property overseas involves a fair amount of risk. But for those who have the stomach for it, this may be a good time to scout around for a holiday home in Sydney, a retirement villa in Penang, an investment property in London, and more attractive buys in other cities.
Source : Sunday Times - 26 Apr 2009
Real estate worldwide has been hard hit by the global downturn.
Home prices in some foreign cities have fallen sharply, as a result of tighter credit and the difficulty some owners face in servicing their mortgages. Their fall, coupled with the relatively strong Singapore dollar, has made it more attractive for Singaporeans to land their dream home overseas.
Investing in a property overseas involves a fair amount of risk. But for those who have the stomach for it, this may be a good time to scout around for a holiday home in Sydney, a retirement villa in Penang, an investment property in London, and more attractive buys in other cities.
Source : Sunday Times - 26 Apr 2009
Home in on malaysia
Posted by goldenpeace on 26-Apr-2009
An over-supply plus gloomy market sentiment are adding up to a rare buying opportunity for investors in Kuala Lumpur, particularly in the prime KL City Centre (KLCC) area.
Dr Lee Ville, president of ERA Malaysia, said: ‘In my personal view, the property market sentiment (of KL) is at its lowest since 2004.
‘This sentiment has sparked a price drop in the KLCC and Mont Kiara locality.’
He gave an example of Kiaraville, a development in Mont Kiara.
‘It was launched in 2005 at RM380 (S$158) per sq ft (psf) and today, there are some units being sold…as low as RM500 psf.’
At the peak, transactions of the property were in the region of RM600 psf, he said.
Mr Ivan Hoh, executive director of PropNex International, said: ‘We are seeing a slowdown in property prices in KL’s prime areas…we have seen a 15 per cent drop from last year.’
He added that ‘many Singaporeans like to buy in areas like Bangsar, Damansara, Mont Kiara, Bukit Bintang and KLCC area’.
‘As this is the capital city of Malaysia, rental yields are better than in other states.
‘Yields in the current market are about 5 per cent to 7 per cent, depending on the selling price of the property,’ Mr Hoh said.
TA Properties’ Idaman Residence, a luxury condominium in KLCC priced from RM950 psf, has units for sale.
Prices for its Idaman Villas, double-storey semi-detached units in the Damansara region with a built-up area of 3,692 sq ft or more each, start from RM500 psf.
Dr Ville said: ‘With current market sentiment, KL properties are at their most affordable and attractive.’
Penang market
Penang is a frequently overlooked but promising state for property investment. Its capital George Town, together with Malacca, received a Unesco World Heritage Site listing last year.
Mr See Kok Loong, director of Metro Homes, said home prices at Seberang Prai, which is on the mainland of Peninsular Malaysia, ‘have been low for many years’ due to ample land and lower purchasing power.
He said a standard terrace house on the mainland could cost between RM200,000 and RM250,000 whereas on the island, ‘where the prime area’ is, terrace houses could cost above RM500,000.
Dr Ville said: ‘There are high-end luxury condominiums along Gurney Drive such as Silverton, Regency, Millennium and 11 Gurney.
‘These fetch anywhere between RM450 psf and RM550 psf.’
Knight Frank Research said gross yields of upper-middle and high-end condominium units in Penang range between 4.5 and 6.5 per cent.
Property giant SP Setia is launching the third phase of Setia Vista - 29 two-storey terrace units with a built-up area of 1,700 sq ft each. Prices start from RM618,880.
Dr Ville said: ‘It is a great place to live or retire. After all, prices remain relatively cheap compared to the rest of our Asian neighbours.’
Source : Sunday Times - 26 Apr 2009
An over-supply plus gloomy market sentiment are adding up to a rare buying opportunity for investors in Kuala Lumpur, particularly in the prime KL City Centre (KLCC) area.
Dr Lee Ville, president of ERA Malaysia, said: ‘In my personal view, the property market sentiment (of KL) is at its lowest since 2004.
‘This sentiment has sparked a price drop in the KLCC and Mont Kiara locality.’
He gave an example of Kiaraville, a development in Mont Kiara.
‘It was launched in 2005 at RM380 (S$158) per sq ft (psf) and today, there are some units being sold…as low as RM500 psf.’
At the peak, transactions of the property were in the region of RM600 psf, he said.
Mr Ivan Hoh, executive director of PropNex International, said: ‘We are seeing a slowdown in property prices in KL’s prime areas…we have seen a 15 per cent drop from last year.’
He added that ‘many Singaporeans like to buy in areas like Bangsar, Damansara, Mont Kiara, Bukit Bintang and KLCC area’.
‘As this is the capital city of Malaysia, rental yields are better than in other states.
‘Yields in the current market are about 5 per cent to 7 per cent, depending on the selling price of the property,’ Mr Hoh said.
TA Properties’ Idaman Residence, a luxury condominium in KLCC priced from RM950 psf, has units for sale.
Prices for its Idaman Villas, double-storey semi-detached units in the Damansara region with a built-up area of 3,692 sq ft or more each, start from RM500 psf.
Dr Ville said: ‘With current market sentiment, KL properties are at their most affordable and attractive.’
Penang market
Penang is a frequently overlooked but promising state for property investment. Its capital George Town, together with Malacca, received a Unesco World Heritage Site listing last year.
Mr See Kok Loong, director of Metro Homes, said home prices at Seberang Prai, which is on the mainland of Peninsular Malaysia, ‘have been low for many years’ due to ample land and lower purchasing power.
He said a standard terrace house on the mainland could cost between RM200,000 and RM250,000 whereas on the island, ‘where the prime area’ is, terrace houses could cost above RM500,000.
Dr Ville said: ‘There are high-end luxury condominiums along Gurney Drive such as Silverton, Regency, Millennium and 11 Gurney.
‘These fetch anywhere between RM450 psf and RM550 psf.’
Knight Frank Research said gross yields of upper-middle and high-end condominium units in Penang range between 4.5 and 6.5 per cent.
Property giant SP Setia is launching the third phase of Setia Vista - 29 two-storey terrace units with a built-up area of 1,700 sq ft each. Prices start from RM618,880.
Dr Ville said: ‘It is a great place to live or retire. After all, prices remain relatively cheap compared to the rest of our Asian neighbours.’
Source : Sunday Times - 26 Apr 2009
Private home prices spiral further downward
Posted by goldenpeace on 26-Apr-2009
PRICES of private homes fell off a cliff in the first quarter, continuing a dramatic slide that has now wiped out the gains owners have made since 2007.
Values dived 14.1 per cent in the first three months this year - the biggest fall on record - and followed a 6.1 per cent slide in the last quarter of last year.
Figures from the Urban Redevelopment Authority (URA) yesterday also point to pain in the residential rent market and in the office sector.
But the plight of the private home sector caught most attention. The first-quarter fall was worse than an initial URA estimate of 13.8 per cent, indicating the slide accelerated towards the end of the quarter.
The souring of the market has been fast and furious. Prices had been rising for four years and were still going north until as late as September of last year but then the rot set in.
Price declines have been registered in three consecutive quarters with the fall in the first three months of this year the worst since the URA began keeping data in 1975. Private homes on the city fringes suffered the most, with prices down 17 per cent, compared with 16.2 per cent in the city centre and 7.3 per cent for suburban residences.
The hefty gains over the past two years have been erased, so owners who bought after the first quarter of 2007 could see their home’s valuation fall below the purchase price, said Colliers International’s director for research and advisory, Ms Tay Huey Ying.
Rents for private homes also kept falling and at a faster rate. They plunged 8.5 per cent in the first quarter compared with a 5.3 per cent decline in the last three months of 2008. Rents of non-landed prime homes fell the most, at 10.3 per cent.
HDB resale flats showed more resilience with prices inching lower by just 0.8 per cent in the first quarter - the first fall since the third quarter of 2006.
But there was a sliver of good news. Sales of new homes in the first quarter were a robust 2,596 units, driven by pent-up demand, price cuts and innovative product packaging, experts said.
The mass market sector was most active with upgraders picking up many units to help lessen the rate of price fall in suburban areas, said Knight Frank consultancy and research director Nicholas Mak. Developer sales in suburban areas reached 1,637 units in the first quarter, almost as many as were sold last year, he said.
But the prime market accounted for only a meagre 9.5 per cent of all developer sales. And sales in the resale and sub-sale markets remained weak.
‘Property really depends on the economy, and the economy around the world and in Singapore still looks pretty weak.’ National Development Minister Mah Bow Tan told Bloomberg in Vietnam yesterday.
Mr Mak expects private home prices and rents to contract sharply in the first half of the year but the rate of decline will decelerate.
Singapore’s office market also took a beating in the first quarter. Rents slid 10.7 per cent, the biggest fall since the first quarter of 1992, while prices fell 12 per cent. Take-up contracted for the second consecutive quarter and for the first time since late 2006, the islandwide vacancy rate hit 10 per cent.
Source : ST - 25 Apr 2009
Friday, April 24, 2009
Property sales and rentals down in Q1 2009
Posted by goldenpeace on 24-Apr-2009
Singapore: Property prices across the board were down in the first quarter of 2009.
Official figures released Friday showed that in the private property market, residential, office, shop and industrial properties decreased fetched lower prices both in terms of sales and rentals.
As for HDB’s Resale Price Index (RPI) for public housing, it showed a fall by 0.8% in 1st Quarter 2009 over the previous quarter. This comes after an increase of 1.4% in 4th Quarter 2008.
There was an increase in resale transactions from 6,186 cases in 4th Quarter 2008 to about 6,446 cases in 1st Quarter 2009, but this increase is slightly lower at 1.4% compared to 1st Quarter 2008.
The HDB data also revealed that the median Cash-Over-Valuation (COV) amount for all resale transactions has been declining since 1st Quarter 2008.
In 1st Quarter 2009, it fell to $4,000, which is $11,000 lower than that in 4th Quarter 2008.
As for the rental of government flats by owners, the numbers in the 1st Quarter remained the same as previous quarter for the smaller flats, but fell by $100 to $200 for 4-room and larger units.
The number of subletting transactions also fell by 4.3% from 3,685 cases in 4th Quarter 2008 to 3,525 cases in 1st Quarter 2009, even though the total number of flats approved for subletting rose to about 22,800 units as at 1st Quarter 2009.
In the private property sector, overall prices for residential units fell by 14.1% in 1st Quarter 2009, compared with the decline of 6.1% in the previous quarter.
Prices of non-landed properties fell by 15.1% in 1st Quarter 2009, compared with the decline of 6.3% in the previous quarter, with apartment prices falling by 15.9%, while those of condominiums fell by 14.7%.
Hardest hit was those in the Core Central Region(CCR) where the drop was by 16.2% while the Rest of Central Region(RCR) and Outside Central Region (OCR) fell by 17.0% and 7.3% respectively.
Rentals of non-landed properties in CCR, RCR and OCR also fell but not as sharply by 10.3%, 7.2% and 6.5% respectively in 1st Quarter 2009.
The drop was not as steep for landed property sales which fell by 9.2% in 1st Quarter 2009, compared with the decrease of 4.8% in the previous quarter.
Overall, the rental market for private properties fetched prices that were 8.5% in 1st Quarter 2009, compared with the decrease of 5.3% in the previous quarter.
The URA also reported in its latest release that as at the end of the 1st Quarter 2009, there was a total supply of 64,152 uncompleted units of private housing from projects in the pipeline.
Of these, 42,045 units remain unsold.
As for the 64,152 uncompleted units, 27,423 units were expected to be completed between 2nd quarter 2009 and 2011, and most are already under construction6.
The URA also said that developers have obtained planning approvals for for projects totaling some 4,000 units, but have yet to commence construction.
Source - CNA/sf
Singapore: Property prices across the board were down in the first quarter of 2009.
Official figures released Friday showed that in the private property market, residential, office, shop and industrial properties decreased fetched lower prices both in terms of sales and rentals.
As for HDB’s Resale Price Index (RPI) for public housing, it showed a fall by 0.8% in 1st Quarter 2009 over the previous quarter. This comes after an increase of 1.4% in 4th Quarter 2008.
There was an increase in resale transactions from 6,186 cases in 4th Quarter 2008 to about 6,446 cases in 1st Quarter 2009, but this increase is slightly lower at 1.4% compared to 1st Quarter 2008.
The HDB data also revealed that the median Cash-Over-Valuation (COV) amount for all resale transactions has been declining since 1st Quarter 2008.
In 1st Quarter 2009, it fell to $4,000, which is $11,000 lower than that in 4th Quarter 2008.
As for the rental of government flats by owners, the numbers in the 1st Quarter remained the same as previous quarter for the smaller flats, but fell by $100 to $200 for 4-room and larger units.
The number of subletting transactions also fell by 4.3% from 3,685 cases in 4th Quarter 2008 to 3,525 cases in 1st Quarter 2009, even though the total number of flats approved for subletting rose to about 22,800 units as at 1st Quarter 2009.
In the private property sector, overall prices for residential units fell by 14.1% in 1st Quarter 2009, compared with the decline of 6.1% in the previous quarter.
Prices of non-landed properties fell by 15.1% in 1st Quarter 2009, compared with the decline of 6.3% in the previous quarter, with apartment prices falling by 15.9%, while those of condominiums fell by 14.7%.
Hardest hit was those in the Core Central Region(CCR) where the drop was by 16.2% while the Rest of Central Region(RCR) and Outside Central Region (OCR) fell by 17.0% and 7.3% respectively.
Rentals of non-landed properties in CCR, RCR and OCR also fell but not as sharply by 10.3%, 7.2% and 6.5% respectively in 1st Quarter 2009.
The drop was not as steep for landed property sales which fell by 9.2% in 1st Quarter 2009, compared with the decrease of 4.8% in the previous quarter.
Overall, the rental market for private properties fetched prices that were 8.5% in 1st Quarter 2009, compared with the decrease of 5.3% in the previous quarter.
The URA also reported in its latest release that as at the end of the 1st Quarter 2009, there was a total supply of 64,152 uncompleted units of private housing from projects in the pipeline.
Of these, 42,045 units remain unsold.
As for the 64,152 uncompleted units, 27,423 units were expected to be completed between 2nd quarter 2009 and 2011, and most are already under construction6.
The URA also said that developers have obtained planning approvals for for projects totaling some 4,000 units, but have yet to commence construction.
Source - CNA/sf
Thursday, April 23, 2009
Two signals speak volumes about condo prices
Posted by goldenpeace on 23-Apr-2009
THE Straits Times Index and cumulative unsold inventory held by developers have been found to be reliable indicators preceding major turning points for private apartment and condo prices in Singapore, according to a study by DTZ.
The STI has been observed to lead the Urban Redevelopment Authority’s non-landed private residential price index by one to four quarters since 1993.
For instance, the STI peaked in the third quarter of 2007 - nine months before the URA’s index peaked in Q2 2008.
Similarly, the cumulative unsold inventory of non-landed private homes - with sales licences - held by developers has peaked or bottomed between two to 12 quarters ahead of turning points in the URA’s index.
DTZ also devised an internal risk assessment model to estimate the probability of future major turning points in the Singapore residential market.
It showed the risk of entering a correction phase has escalated considerably since Q2 2008.
The property consulting group said: ‘Our assessment indicates that the probability of a full recovery by the end of 2009 - for the office and residential property markets in Hong Kong, China and Singapore - remains low.’ DTZ added: ‘Our internal model also indicates that the Singapore residential market has a higher chance of bottoming by mid-2010 (than by end-2009) and staging a gradual recovery from that point onwards.’
Both the Hong Kong and Singapore office markets have a lower probability of recovering by end-2010 than the residential markets in these two cities, as the office sector is more closely correlated with economic growth than the residential sector, DTZ reckons.
Asked whether the recent stockmarket rally will presage a recovery in home prices in Singapore, DTZ senior research director Chua Chor Hoon said: ‘It’s too early to say if the stockmarket rally will be sustained. A lot will hinge on when the economy recovers.’
Source : BT - 23 Apr 2009
THE Straits Times Index and cumulative unsold inventory held by developers have been found to be reliable indicators preceding major turning points for private apartment and condo prices in Singapore, according to a study by DTZ.
The STI has been observed to lead the Urban Redevelopment Authority’s non-landed private residential price index by one to four quarters since 1993.
For instance, the STI peaked in the third quarter of 2007 - nine months before the URA’s index peaked in Q2 2008.
Similarly, the cumulative unsold inventory of non-landed private homes - with sales licences - held by developers has peaked or bottomed between two to 12 quarters ahead of turning points in the URA’s index.
DTZ also devised an internal risk assessment model to estimate the probability of future major turning points in the Singapore residential market.
It showed the risk of entering a correction phase has escalated considerably since Q2 2008.
The property consulting group said: ‘Our assessment indicates that the probability of a full recovery by the end of 2009 - for the office and residential property markets in Hong Kong, China and Singapore - remains low.’ DTZ added: ‘Our internal model also indicates that the Singapore residential market has a higher chance of bottoming by mid-2010 (than by end-2009) and staging a gradual recovery from that point onwards.’
Both the Hong Kong and Singapore office markets have a lower probability of recovering by end-2010 than the residential markets in these two cities, as the office sector is more closely correlated with economic growth than the residential sector, DTZ reckons.
Asked whether the recent stockmarket rally will presage a recovery in home prices in Singapore, DTZ senior research director Chua Chor Hoon said: ‘It’s too early to say if the stockmarket rally will be sustained. A lot will hinge on when the economy recovers.’
Source : BT - 23 Apr 2009
Hopes of a quick turnaround in property market fizzling out
Posted by goldenpeace on 23-Apr-2009
Hopes of a quick turnaround in the property market here are fizzling out.
Property consultancy DTZ said the probability of a full recovery in the Singapore property market by the end of this year is low.
In a research report issued on Wednesday, DTZ predicted there is only a 0.1 per cent chance that the Singapore office rental market will recover by year-end.
The residential market here is not faring much better, with only a 0.9 per cent probability of recovery by the third quarter and a 5.8 per cent chance by the end of the year.
DTZ said the Singapore residential market has a better chance of bottoming by mid 2010 and stage a gradual recovery from then onwards.
It also expects the office market to lag the residential market in staging a recovery.
Factors that DTZ used in its forecast include Singapore’s stock market index and the cumulative unsold inventory held by developers.
Source : CNA - 22 Apr 2009
Hopes of a quick turnaround in the property market here are fizzling out.
Property consultancy DTZ said the probability of a full recovery in the Singapore property market by the end of this year is low.
In a research report issued on Wednesday, DTZ predicted there is only a 0.1 per cent chance that the Singapore office rental market will recover by year-end.
The residential market here is not faring much better, with only a 0.9 per cent probability of recovery by the third quarter and a 5.8 per cent chance by the end of the year.
DTZ said the Singapore residential market has a better chance of bottoming by mid 2010 and stage a gradual recovery from then onwards.
It also expects the office market to lag the residential market in staging a recovery.
Factors that DTZ used in its forecast include Singapore’s stock market index and the cumulative unsold inventory held by developers.
Source : CNA - 22 Apr 2009
20 units of The Arte sold over weekend
Posted by goldenpeace on 23-Apr-2009
CITY Developments Ltd (CDL) sold 20 units at The Arte at Thomson over the weekend. This takes total sales since the property’s official launch to 170 units, with last weekend’s sales fetching a total of $30 million.
‘The sales volume indicates that buyers have greater confidence in the property market and in the future of their investment. This reinforces CDL’s view that the current market is now attracting savvy but cautious investors,’ said Chia Ngiang Hong, Group general manager of CDL.
Buyers’ interest was also evidenced by the strong turnover of over 1,000 visitors at The Arte’s showroom over the weekend.
Among other factors, these prospective buyers were drawn by the property’s location and proximity to a MRT station, according to a CDL release.
The Arte is located within the Thomson area with convenient connections to the City and the expressways. It is also a short walk from Toa Payoh MRT station.
Priced at $880 psf on average, the freehold project comprises two 36-storey towers and will be completed in 2012. Most of the 336 units available are going for under $2 million.
Buyers can opt for CDL’s interest absorption scheme (IAS), which allows them to defer the bulk of their purchase until The Arte’s completion on the condition that they take up a housing loan at the point of sale.
A majority of buyers of The Arte have private home addresses and many say they want to invest in another property or to move into a new and upscale residence.
Singaporeans’ renewed interest in private property saw the sales of 2,660 private homes in the first three months of 2009, which is about 62 per cent of total new home sales in 2008, according to the CDL release.
Source : ST - 21 Apr 2009
CITY Developments Ltd (CDL) sold 20 units at The Arte at Thomson over the weekend. This takes total sales since the property’s official launch to 170 units, with last weekend’s sales fetching a total of $30 million.
‘The sales volume indicates that buyers have greater confidence in the property market and in the future of their investment. This reinforces CDL’s view that the current market is now attracting savvy but cautious investors,’ said Chia Ngiang Hong, Group general manager of CDL.
Buyers’ interest was also evidenced by the strong turnover of over 1,000 visitors at The Arte’s showroom over the weekend.
Among other factors, these prospective buyers were drawn by the property’s location and proximity to a MRT station, according to a CDL release.
The Arte is located within the Thomson area with convenient connections to the City and the expressways. It is also a short walk from Toa Payoh MRT station.
Priced at $880 psf on average, the freehold project comprises two 36-storey towers and will be completed in 2012. Most of the 336 units available are going for under $2 million.
Buyers can opt for CDL’s interest absorption scheme (IAS), which allows them to defer the bulk of their purchase until The Arte’s completion on the condition that they take up a housing loan at the point of sale.
A majority of buyers of The Arte have private home addresses and many say they want to invest in another property or to move into a new and upscale residence.
Singaporeans’ renewed interest in private property saw the sales of 2,660 private homes in the first three months of 2009, which is about 62 per cent of total new home sales in 2008, according to the CDL release.
Source : ST - 21 Apr 2009
Friday, April 17, 2009
Home sales set to rise in 3 to 12 months: CDL
Posted by goldenpeace on 17-Apr-2009
PROPERTY developer City Developments (CDL) said yesterday that it expects increasing numbers of homebuyers to enter the market in the next three to 12 months.
Its optimism stems from the sale of more than 80 per cent - or 150 units - of its newly-launched development, The Arte at Thomson. CDL has put 180 units of the 336-unit project on sale.
It said The Arte was ‘a record breaker of sorts’, being one of the few large projects launched in the global economic meltdown ‘that has tasted success’.
CDLs’ statement comes on the heels of newly released data that showed 1,220 new private homes sold last month, just shy of the 1,332 units sold in February.
This makes two consecutive months with more than 1,000 units sold - the first time it has happened in a year.
First-quarter private home sales have hit 2,660 units - about 62 per cent of all of last year’s new home sales.
It has led some to speculate that the market has indeed turned a corner.
CDL said that ‘after absorbing news of forecasts of a steep decline in GDP growth for 2009, the upbeat in sales volume could mean that there is greater confidence that a turnaround is in sight - with a steady rise expected in the property market within the next three to 12 months’.
But analysts maintain that this level of buying may not be sustainable.
Knight Frank director of research and consultancy, Mr Nicholas Mak, has estimated that only 6,000 to 7,000 new private homes are expected to be sold this year, unless the Singapore economy and employment market improve significantly.
However, CDL’s group general manager, Mr Chia Ngiang Hong, said that recent launches have shown that ‘buyers are still willing to spend when they see value and see a good deal’.
Developers, prompted by the challenging economic conditions, have lowered selling prices - by between 5 to 25 per cent - and these factors have contributed to larger transaction volumes, said CDL.
Source : ST - 17 Apr 2009
PROPERTY developer City Developments (CDL) said yesterday that it expects increasing numbers of homebuyers to enter the market in the next three to 12 months.
Its optimism stems from the sale of more than 80 per cent - or 150 units - of its newly-launched development, The Arte at Thomson. CDL has put 180 units of the 336-unit project on sale.
It said The Arte was ‘a record breaker of sorts’, being one of the few large projects launched in the global economic meltdown ‘that has tasted success’.
CDLs’ statement comes on the heels of newly released data that showed 1,220 new private homes sold last month, just shy of the 1,332 units sold in February.
This makes two consecutive months with more than 1,000 units sold - the first time it has happened in a year.
First-quarter private home sales have hit 2,660 units - about 62 per cent of all of last year’s new home sales.
It has led some to speculate that the market has indeed turned a corner.
CDL said that ‘after absorbing news of forecasts of a steep decline in GDP growth for 2009, the upbeat in sales volume could mean that there is greater confidence that a turnaround is in sight - with a steady rise expected in the property market within the next three to 12 months’.
But analysts maintain that this level of buying may not be sustainable.
Knight Frank director of research and consultancy, Mr Nicholas Mak, has estimated that only 6,000 to 7,000 new private homes are expected to be sold this year, unless the Singapore economy and employment market improve significantly.
However, CDL’s group general manager, Mr Chia Ngiang Hong, said that recent launches have shown that ‘buyers are still willing to spend when they see value and see a good deal’.
Developers, prompted by the challenging economic conditions, have lowered selling prices - by between 5 to 25 per cent - and these factors have contributed to larger transaction volumes, said CDL.
Source : ST - 17 Apr 2009
Thursday, April 16, 2009
HDB prices on their way down
Posted by goldenpeace on 16-Apr-2009
GOOD news for home buyers eyeing the resale flat market: About one-third of HDB sales in the first quarter were struck at or below the flat’s valuation price.
The level in some areas was far higher. In Sengkang, for instance, up to three in four five-room flats sold by ERA Asia Pacific were done at or below valuation.
This means those buyers did not need upfront cash to buy their dream home.
Analysts say the trend indicates HDB flat prices are now coming down at a quicker rate after holding up better than many private residential properties.
In the recent market boom, many sellers sought prices well above valuation - a figure set by an independent valuer.
Buyers can use Central Provident Fund savings to pay for a flat only up to its valuation amount. They must stump up cash for any premium they pay above valuation.
The property agencies surveyed by The Straits Times, HSR Property Group, PropNex, ERA Asia Pacific and C&H Realty - which together account for almost the entire HDB market - said a significant 30 per cent to 40 per cent of first-quarter sales were done at or below valuation.
The agencies’ data showed prices crumbling for bigger flats such as five-roomers and executive flats. In Clementi, for instance, a five-room flat was sold for $70,000 below valuation at $500,000, while an executive flat in Tampines sold for $65,000 below its valuation at $515,000.
Industry observers say the HDB market, whose price trends typically lag behind those of the private sector, is finally reflecting the weakened economy.
Recent flash estimates showed HDB prices dipped 0.6 per cent in the first three months, compared with the fourth quarter of last year. It is the first fall since 2006.
Demand for resale flats has eased as the recession bites, while the HDB has been ramping up the supply of new flats, said Chesterton Suntec International head of research and consultancy Colin Tan. Home buyers also have more options now as prices of mass market condominiums are more affordable, he added.
ERA associate director Eugene Lim said home hunters were reluctant to pay more than $500,000 for HDB flats.
‘The longer these highly priced flats stay on the market, the more over-exposed they become. Consequently, some had to be sold at big discounts due to buyer resistance,’ he added.
The balance of power has now clearly shifted from sellers to buyers, with analysts saying this could be the time for buyers to do some bargain-hunting.
ERA’s first-quarter data showed that in locations such as Sengkang, a whopping 74 per cent of transactions for five-roomers were done at or below valuation. In Tampines, they accounted for 55 per cent while, at Jurong West, it was 42 per cent.
Even for smaller flat types like three-roomers in Ang Mo Kio and four-roomers at Woodlands, 42 per cent to 44 per cent of sales were at or below valuation.
Experts point out that while more flats are now selling below valuation, this does not mean people are selling at a loss as HDB prices rose a hefty 31.2 per cent in the property boom of the past two years. But first-time buyers, priced out of the resale market during the boom, will now find the flats more affordable.
The current discounts to valuation will eventually diminish when valuations catch up, which usually takes three months, said Knight Frank director of research and consultancy Nicholas Mak.
But there is a possibility of valuations and price falls chasing each other, further eroding prices, he said.
Source : ST - 16 Apr 2009
GOOD news for home buyers eyeing the resale flat market: About one-third of HDB sales in the first quarter were struck at or below the flat’s valuation price.
The level in some areas was far higher. In Sengkang, for instance, up to three in four five-room flats sold by ERA Asia Pacific were done at or below valuation.
This means those buyers did not need upfront cash to buy their dream home.
Analysts say the trend indicates HDB flat prices are now coming down at a quicker rate after holding up better than many private residential properties.
In the recent market boom, many sellers sought prices well above valuation - a figure set by an independent valuer.
Buyers can use Central Provident Fund savings to pay for a flat only up to its valuation amount. They must stump up cash for any premium they pay above valuation.
The property agencies surveyed by The Straits Times, HSR Property Group, PropNex, ERA Asia Pacific and C&H Realty - which together account for almost the entire HDB market - said a significant 30 per cent to 40 per cent of first-quarter sales were done at or below valuation.
The agencies’ data showed prices crumbling for bigger flats such as five-roomers and executive flats. In Clementi, for instance, a five-room flat was sold for $70,000 below valuation at $500,000, while an executive flat in Tampines sold for $65,000 below its valuation at $515,000.
Industry observers say the HDB market, whose price trends typically lag behind those of the private sector, is finally reflecting the weakened economy.
Recent flash estimates showed HDB prices dipped 0.6 per cent in the first three months, compared with the fourth quarter of last year. It is the first fall since 2006.
Demand for resale flats has eased as the recession bites, while the HDB has been ramping up the supply of new flats, said Chesterton Suntec International head of research and consultancy Colin Tan. Home buyers also have more options now as prices of mass market condominiums are more affordable, he added.
ERA associate director Eugene Lim said home hunters were reluctant to pay more than $500,000 for HDB flats.
‘The longer these highly priced flats stay on the market, the more over-exposed they become. Consequently, some had to be sold at big discounts due to buyer resistance,’ he added.
The balance of power has now clearly shifted from sellers to buyers, with analysts saying this could be the time for buyers to do some bargain-hunting.
ERA’s first-quarter data showed that in locations such as Sengkang, a whopping 74 per cent of transactions for five-roomers were done at or below valuation. In Tampines, they accounted for 55 per cent while, at Jurong West, it was 42 per cent.
Even for smaller flat types like three-roomers in Ang Mo Kio and four-roomers at Woodlands, 42 per cent to 44 per cent of sales were at or below valuation.
Experts point out that while more flats are now selling below valuation, this does not mean people are selling at a loss as HDB prices rose a hefty 31.2 per cent in the property boom of the past two years. But first-time buyers, priced out of the resale market during the boom, will now find the flats more affordable.
The current discounts to valuation will eventually diminish when valuations catch up, which usually takes three months, said Knight Frank director of research and consultancy Nicholas Mak.
But there is a possibility of valuations and price falls chasing each other, further eroding prices, he said.
Source : ST - 16 Apr 2009
Some 4,000 show up at launch of DBSS project, The Peak @ Toa Payoh
Posted by goldenpeace on 16-Apr-2009
SINGAPORE: Some 4,000 people showed up at the launch of "The Peak at Toa Payoh" on Wednesday - a project under the HDB's design, build and sell scheme (DBSS).
There were some 100 people lining up outside the development even before it was launched at 8am.
Analysts said that's not a bad turnout especially since a premium five-room flat there costs more than S$700,000.
The development offers some condominium-style facilities. However, the project does not have swimming pools or gyms.
But it comes with a card-access security system at all ground-floor lift lobbies.
The Peak is the HDB's fifth DBSS project so far.
Source - CNA/vm
SINGAPORE: Some 4,000 people showed up at the launch of "The Peak at Toa Payoh" on Wednesday - a project under the HDB's design, build and sell scheme (DBSS).
There were some 100 people lining up outside the development even before it was launched at 8am.
Analysts said that's not a bad turnout especially since a premium five-room flat there costs more than S$700,000.
The development offers some condominium-style facilities. However, the project does not have swimming pools or gyms.
But it comes with a card-access security system at all ground-floor lift lobbies.
The Peak is the HDB's fifth DBSS project so far.
Source - CNA/vm
Wednesday, April 15, 2009
Private home sales hold up
Posted by goldenpeace on 15-Apr-2009
Property developers sold 1,220 new private residential units in March, said the Urban Redevelopment Authority on Wednesday.
This is a slight dip from the 1,332 units sold in February but the number still exceeds the 108 units sold in January.
The launch of Double Bay Residences in Simei provided some support to March sales - 264 units were sold, the highest among the more than 400 projects listed.
In total, developers launched 832 units in March. This is lower than the 1,072 in February.
Source : Business Times - 15 Apr 2009
Property developers sold 1,220 new private residential units in March, said the Urban Redevelopment Authority on Wednesday.
This is a slight dip from the 1,332 units sold in February but the number still exceeds the 108 units sold in January.
The launch of Double Bay Residences in Simei provided some support to March sales - 264 units were sold, the highest among the more than 400 projects listed.
In total, developers launched 832 units in March. This is lower than the 1,072 in February.
Source : Business Times - 15 Apr 2009
Timing's everything for upgraders
Posted by goldenpeace on 15-Apr-2009
IN THE midst of Singapore’s worst recession, people are still buying property.
Private condominium sales reached a recent high of 1,323 units in February - the highest since the 1,731 units sold in August 2007, which was the peak of the recent property bull run.
And though official figures are not yet available, the buying frenzy seems to have continued into March.
According to a recent report by DTZ Research, seven out of 10 buyers in the first quarter of this year are HDB upgraders.
This is a jump from the 48 per cent registered in the fourth quarter last year, and the highest number since the 86 per cent achieved in the second quarter of 2002.
HDB upgraders are home buyers with HDB addresses looking to move up the property ladder. They typically buy into mass-market condos, usually in the suburbs.
Experts say the recent brisk sales indicate a ‘pent-up demand’ in the market, especially from buyers who held back during the recent property boom, when prices skyrocketed in 2006 to 2007.
They also point to a unique phenomenon that occurs in a property boom-and -bust cycle where the gap between the price of HDB resale flats and mass market condos has narrowed to an all-time low.
Private property prices fell a quarterly record of 13.8 per cent in the first quarter of this year, compared with the marginal 0.6 per cent drop for HDB resale flats.
This means that HDB flat owners own an asset that has appreciated to more or less record value, at a time when the prices of mid-tier condos have dropped to affordable levels.
Now, the jump from public to private home ownership has always been a tantalising proposition.
But is this really the right time for an HDB upgrader to buy?
The answer, say property experts, depends on two things - when the condo unit the upgrader is buying will be completed, and what view he takes of the Singapore property market over the next couple of years.
Let me explain.
Unlike an investor who is buying for rental yield, the HDB upgrader typically moves out of his HDB flat and into his new condo unit. This means that he sells his flat only when the new condo unit is completed and ready for occupation.
Therefore, it makes the most sense for an upgrader today to buy a completed unit - because he can sell his flat now for a relatively high price and buy the new private condo unit on the cheap.
The problem is that there aren’t many completed suburban developments on the market. Most new condos approaching completion today are in the prime districts, which were the focus of the property boom two years ago.
And the handful of suburban developments that are close to completion aren’t that attractively priced, so the HDB upgrader isn’t getting that good a deal on them.
The fact is: The cheapest suburban condo units today are those being sold ‘off plan’, meaning that they will be completed only two or three years later.
For HDB upgraders who buy these types of condo units, the fact that they can currently can get a good price for their HDB flats is moot, because they will sell their flats only two or three years down the road.
That brings me to the second point that HDB upgraders must consider before signing on the dotted line.
What will the global economy and the Singapore property market look like in two or three years’ time, when these projects are due for completion?
Home buyers today can no longer rely on the now-defunct deferred payment scheme introduced in 1997. This allowed buyers to pay a 10 or 20 per cent downpayment, and defer taking a bank loan until the project was completed.
Developers have replaced this with the ‘interest absorption scheme’. Here, the buyer also pays an initial 20 per cent downpayment and defers the rest until the property is completed.
But the big difference now is that the minute buyers commit to a property, they have to take a loan with a bank which the developer has selected. The developer then foots the bill for the buyer in interest payments to the bank during the construction period.
This arrangement carries new risks for the home buyer.
Firstly, if a developer goes under, it will no longer be able to pay the regular interest payments and the bank will go to the buyer for these payments.
This seems quite an unlikely scenario in Singapore as developers who offer this scheme generally have the financial muscle to ride out the tough times. Still, the risk of this happening is higher with smaller developers.
Secondly, the bank reserves the right to revalue a property at any point during the construction, or when the project is completed.
So if the property market heads further south, a bank may revalue properties downwards. This means that it will likely reduce the sum it had earlier agreed to lend to the buyer, who will then have to stump up a hefty sum of cash to make up the difference.
On the one hand, experts say banks are unlikely to revalue properties as long as buyers are able to make the monthly payments. Unlike high-end properties where prices could crash in as little as three months, prices of suburban units are less volatile, say analysts.
But on the other hand, if the market really crashes, HDB upgraders could be hit by a double whammy. They will have to fork out more cash to top up their loans at a time when the values of their resale flats would most likely have crashed along with the general market. And if they back out of buying the new flat, they will lose a 20 per cent deposit.
In the worst-case scenario, they could be saddled with two mortgages for properties, both in negative equity.
Such an optimistic gamble on the future is not for the faint-hearted nor the financially prudent, especially when unemployment is hitting a record high.
But if an HDB upgrader truly has the financial strength to hold on to his properties indefinitely for the long term, it could be a gamble that will pay off when the market finally recovers.
These are sums that one must do carefully, no matter how beautiful and attractive floor plans and showflats now look.
Source : Straits Times - 15 Apr 2009
IN THE midst of Singapore’s worst recession, people are still buying property.
Private condominium sales reached a recent high of 1,323 units in February - the highest since the 1,731 units sold in August 2007, which was the peak of the recent property bull run.
And though official figures are not yet available, the buying frenzy seems to have continued into March.
According to a recent report by DTZ Research, seven out of 10 buyers in the first quarter of this year are HDB upgraders.
This is a jump from the 48 per cent registered in the fourth quarter last year, and the highest number since the 86 per cent achieved in the second quarter of 2002.
HDB upgraders are home buyers with HDB addresses looking to move up the property ladder. They typically buy into mass-market condos, usually in the suburbs.
Experts say the recent brisk sales indicate a ‘pent-up demand’ in the market, especially from buyers who held back during the recent property boom, when prices skyrocketed in 2006 to 2007.
They also point to a unique phenomenon that occurs in a property boom-and -bust cycle where the gap between the price of HDB resale flats and mass market condos has narrowed to an all-time low.
Private property prices fell a quarterly record of 13.8 per cent in the first quarter of this year, compared with the marginal 0.6 per cent drop for HDB resale flats.
This means that HDB flat owners own an asset that has appreciated to more or less record value, at a time when the prices of mid-tier condos have dropped to affordable levels.
Now, the jump from public to private home ownership has always been a tantalising proposition.
But is this really the right time for an HDB upgrader to buy?
The answer, say property experts, depends on two things - when the condo unit the upgrader is buying will be completed, and what view he takes of the Singapore property market over the next couple of years.
Let me explain.
Unlike an investor who is buying for rental yield, the HDB upgrader typically moves out of his HDB flat and into his new condo unit. This means that he sells his flat only when the new condo unit is completed and ready for occupation.
Therefore, it makes the most sense for an upgrader today to buy a completed unit - because he can sell his flat now for a relatively high price and buy the new private condo unit on the cheap.
The problem is that there aren’t many completed suburban developments on the market. Most new condos approaching completion today are in the prime districts, which were the focus of the property boom two years ago.
And the handful of suburban developments that are close to completion aren’t that attractively priced, so the HDB upgrader isn’t getting that good a deal on them.
The fact is: The cheapest suburban condo units today are those being sold ‘off plan’, meaning that they will be completed only two or three years later.
For HDB upgraders who buy these types of condo units, the fact that they can currently can get a good price for their HDB flats is moot, because they will sell their flats only two or three years down the road.
That brings me to the second point that HDB upgraders must consider before signing on the dotted line.
What will the global economy and the Singapore property market look like in two or three years’ time, when these projects are due for completion?
Home buyers today can no longer rely on the now-defunct deferred payment scheme introduced in 1997. This allowed buyers to pay a 10 or 20 per cent downpayment, and defer taking a bank loan until the project was completed.
Developers have replaced this with the ‘interest absorption scheme’. Here, the buyer also pays an initial 20 per cent downpayment and defers the rest until the property is completed.
But the big difference now is that the minute buyers commit to a property, they have to take a loan with a bank which the developer has selected. The developer then foots the bill for the buyer in interest payments to the bank during the construction period.
This arrangement carries new risks for the home buyer.
Firstly, if a developer goes under, it will no longer be able to pay the regular interest payments and the bank will go to the buyer for these payments.
This seems quite an unlikely scenario in Singapore as developers who offer this scheme generally have the financial muscle to ride out the tough times. Still, the risk of this happening is higher with smaller developers.
Secondly, the bank reserves the right to revalue a property at any point during the construction, or when the project is completed.
So if the property market heads further south, a bank may revalue properties downwards. This means that it will likely reduce the sum it had earlier agreed to lend to the buyer, who will then have to stump up a hefty sum of cash to make up the difference.
On the one hand, experts say banks are unlikely to revalue properties as long as buyers are able to make the monthly payments. Unlike high-end properties where prices could crash in as little as three months, prices of suburban units are less volatile, say analysts.
But on the other hand, if the market really crashes, HDB upgraders could be hit by a double whammy. They will have to fork out more cash to top up their loans at a time when the values of their resale flats would most likely have crashed along with the general market. And if they back out of buying the new flat, they will lose a 20 per cent deposit.
In the worst-case scenario, they could be saddled with two mortgages for properties, both in negative equity.
Such an optimistic gamble on the future is not for the faint-hearted nor the financially prudent, especially when unemployment is hitting a record high.
But if an HDB upgrader truly has the financial strength to hold on to his properties indefinitely for the long term, it could be a gamble that will pay off when the market finally recovers.
These are sums that one must do carefully, no matter how beautiful and attractive floor plans and showflats now look.
Source : Straits Times - 15 Apr 2009
Tuesday, April 14, 2009
Swift response to Gallop Gables units
Posted by goldenpeace on 14-AApr-2009
INVESTORS made a dash for high-end residential development Gallop Gables after The Straits Trading Company offered a two- year guaranteed rental yield of 7 per cent on 10 units there last week.
Not only did the company let go of all 10 units at the freehold Farrer Road estate in three days, it managed to sell another 16 without providing a rental guarantee. Prices of the 26 units ranged from $3,075,200 to $3,840,000, fetching an average of $1,220 psf.
The ‘overwhelming response’ was surprising because sales in the high-end property sector have been weak since the financial crisis erupted, said Straits Trading’s executive vice- president Eric Teng.
Even though the rental guarantee applied on just 10 apartments, ‘we were still able to sell more units because our prices were reasonable and competitive and we have an excellent well-maintained product’, he said.
Located near the Botanic Gardens, asking prices at the 12-year-old Gallop Gables have dropped in the last few months. Straits Trading put up two blocks of apartments for sale in July last year with a price tag of about $1,500 psf.
‘Feedback from prospects and buyers suggest that with less than one per cent per annum (from) fixed deposits in banks today, a yield of 3 to 4 per cent per annum and above in property rental is still an attractive proposition,’ Mr Teng added.
According to him, buyers were mainly locals in their mid-thirties to late- seventies. Most bought the units for investment though a few said they might move in when the rental guarantee ends.
The situation indicates that well-located high-end properties can still sell with good advertising, said Chesterton Suntec International’s head of research and consultancy Colin Tan.
‘It shows what clever marketing and publicity can do . . . Of course, the property itself is good.’
Encouraged by the response, Straits Trading is ready to sell more units at Gallop Gables but it is raising prices by up to 10 per cent. The new prices are ’still reasonable’ compared with those a year or two ago, said Mr Teng.
Units available for sale are ‘limited’ but the company prefers not to disclose the number as it is still monitoring the property market.
Source : Business Times - 14 Apr 2009
INVESTORS made a dash for high-end residential development Gallop Gables after The Straits Trading Company offered a two- year guaranteed rental yield of 7 per cent on 10 units there last week.
Not only did the company let go of all 10 units at the freehold Farrer Road estate in three days, it managed to sell another 16 without providing a rental guarantee. Prices of the 26 units ranged from $3,075,200 to $3,840,000, fetching an average of $1,220 psf.
The ‘overwhelming response’ was surprising because sales in the high-end property sector have been weak since the financial crisis erupted, said Straits Trading’s executive vice- president Eric Teng.
Even though the rental guarantee applied on just 10 apartments, ‘we were still able to sell more units because our prices were reasonable and competitive and we have an excellent well-maintained product’, he said.
Located near the Botanic Gardens, asking prices at the 12-year-old Gallop Gables have dropped in the last few months. Straits Trading put up two blocks of apartments for sale in July last year with a price tag of about $1,500 psf.
‘Feedback from prospects and buyers suggest that with less than one per cent per annum (from) fixed deposits in banks today, a yield of 3 to 4 per cent per annum and above in property rental is still an attractive proposition,’ Mr Teng added.
According to him, buyers were mainly locals in their mid-thirties to late- seventies. Most bought the units for investment though a few said they might move in when the rental guarantee ends.
The situation indicates that well-located high-end properties can still sell with good advertising, said Chesterton Suntec International’s head of research and consultancy Colin Tan.
‘It shows what clever marketing and publicity can do . . . Of course, the property itself is good.’
Encouraged by the response, Straits Trading is ready to sell more units at Gallop Gables but it is raising prices by up to 10 per cent. The new prices are ’still reasonable’ compared with those a year or two ago, said Mr Teng.
Units available for sale are ‘limited’ but the company prefers not to disclose the number as it is still monitoring the property market.
Source : Business Times - 14 Apr 2009
Wednesday, April 8, 2009
2009 Q1 saw only 10 investments in Singapore's property market
Posted by goldenpeace on 08-Apr-2009
Singapore’s investment property market was quiet in the first quarter of the year, as the global recession continues.
The first three months of 2009 saw only 10 investment transactions, compared to 15 in the fourth quarter of last year.
All the deals were below S$40 million.
Real estate adviser DTZ said all the investment sales in the first quarter took place in the private sector.
This is partly due to the fact that government land sales through the confirmed list had been suspended and no reserve site was triggered.
DTZ added that private sales are expected to dominate for the rest of this year.
In addition, it said total investment sales plunged 58 per cent to S$153 million in the first quarter of this year.
This is the third lowest amount since 1998.
DTZ said residential investments contributed the most in total sales at 46 per cent in the first quarter.
The office sector was next with 34 per cent of total sales in the same period.
Investment sales in the industrial sector on the other hand fell the most in the quarter.
It dropped by 80 per cent to S$25 million.
DTZ’s senior director for investment advisory services and auction, Shaun Poh, said, “Activity in the investment market could pick up in the late part of the year when the economy is expected to recover and lending conditions ease. The market is not short of interested investors with money on hand, looking for prime properties.”
DTZ noted however, that there’s currently a mismatch in bid-ask prices, hampered by tight credit and expectations of falling rents.
Source : CNA - 8 Apr 2009
Singapore’s investment property market was quiet in the first quarter of the year, as the global recession continues.
The first three months of 2009 saw only 10 investment transactions, compared to 15 in the fourth quarter of last year.
All the deals were below S$40 million.
Real estate adviser DTZ said all the investment sales in the first quarter took place in the private sector.
This is partly due to the fact that government land sales through the confirmed list had been suspended and no reserve site was triggered.
DTZ added that private sales are expected to dominate for the rest of this year.
In addition, it said total investment sales plunged 58 per cent to S$153 million in the first quarter of this year.
This is the third lowest amount since 1998.
DTZ said residential investments contributed the most in total sales at 46 per cent in the first quarter.
The office sector was next with 34 per cent of total sales in the same period.
Investment sales in the industrial sector on the other hand fell the most in the quarter.
It dropped by 80 per cent to S$25 million.
DTZ’s senior director for investment advisory services and auction, Shaun Poh, said, “Activity in the investment market could pick up in the late part of the year when the economy is expected to recover and lending conditions ease. The market is not short of interested investors with money on hand, looking for prime properties.”
DTZ noted however, that there’s currently a mismatch in bid-ask prices, hampered by tight credit and expectations of falling rents.
Source : CNA - 8 Apr 2009
Monday, April 6, 2009
Verdure @ Holland Road
Location: Holland Road
Tenure: Freehold
Expected Completion: Dec 2014
Site Area: approx 76,635 sq ft
Total Units: 75 (69 apartments & 6 strata villas)
Unit Types:
2 Bedroom ~ 947 to 1,076sqft
3 Bedroom ~ 1,421 to 1,464sqft
4 Bedroom Maisonatte ~ 1,679 to 1,765sqft
3 Bedroom Penthouse ~ 1,711 to 1,733sqft
4 Bedroom Penthouse ~ 2,239 to 2,260sqft
5 Bedroom Strata Villas ~ 3,552 to 3,918sqft
Facilities:
~ Swimming Pool
~ Steam Room
~ Jacuzzi
~ BBQ Area
~ Function Room
~ Gymnasium
Key Features:
~ Single-loading
~ Units are mostly N-S orientation
~ Private lift lobby for all units
~ Generous balcony as an extension of space from the living - “Bungalows in the sky”
~ All strata villas come with private jacuzzi
~ No restriction on foreign ownership of villas
~ Last few plots of Freehold land with true Holland address
~ All units come with views towards the greenery of Good Class Bungalows’ zone
Nearby Amenities:
~ 5-star conveniences with an array of exciting shopping and entertainment amenities
~ Mins to Orchard, Dempsey Hill & Bontanical Garden
~ Close proximity to Holland Village & Food Centre
~ Near to upcoming Farrer MRT
~ Easy access to PIE & AYE
Tenure: Freehold
Expected Completion: Dec 2014
Site Area: approx 76,635 sq ft
Total Units: 75 (69 apartments & 6 strata villas)
Unit Types:
2 Bedroom ~ 947 to 1,076sqft
3 Bedroom ~ 1,421 to 1,464sqft
4 Bedroom Maisonatte ~ 1,679 to 1,765sqft
3 Bedroom Penthouse ~ 1,711 to 1,733sqft
4 Bedroom Penthouse ~ 2,239 to 2,260sqft
5 Bedroom Strata Villas ~ 3,552 to 3,918sqft
Facilities:
~ Swimming Pool
~ Steam Room
~ Jacuzzi
~ BBQ Area
~ Function Room
~ Gymnasium
Key Features:
~ Single-loading
~ Units are mostly N-S orientation
~ Private lift lobby for all units
~ Generous balcony as an extension of space from the living - “Bungalows in the sky”
~ All strata villas come with private jacuzzi
~ No restriction on foreign ownership of villas
~ Last few plots of Freehold land with true Holland address
~ All units come with views towards the greenery of Good Class Bungalows’ zone
Nearby Amenities:
~ 5-star conveniences with an array of exciting shopping and entertainment amenities
~ Mins to Orchard, Dempsey Hill & Bontanical Garden
~ Close proximity to Holland Village & Food Centre
~ Near to upcoming Farrer MRT
~ Easy access to PIE & AYE
Sunday, April 5, 2009
Collective sale impetus fizzles out
Posted by goldenpeace on 05-Apr-2009
The once fever-hot collective sale market is now stone-cold, and property experts predict it will take at least five years for transactions to reach the pitch seen before.
At the height of the property boom in 2007, 116 collective sales were completed. This figure was whittled down to just eight last year, after the onslaught of the global economic crisis.
There was no collective sale done in the first three months of this year.
Industry players expect the market to stay dormant in the coming months as developers remain mindful of the lukewarm response to new residential launches and have also to contend with high construction costs and tighter credit measures.
Mr Steven Ming, Savills Singapore’s director for investment sales, said: ‘At this point, developers are not on an acquiring mode, not until they have cleared their inventory of apartments bought over the last few years.’
Most collective sale sites put up for tender late last year have closed without any bids.
They include Spanish Village in Farrer Road, Villa delle Rose off Holland Road and Elizabeth Towers in Mount Elizabeth.
Two months ago, developer Jewel 1 pulled out 20 days before a planned $44 million purchase of Cairnhill Heights. It cited ‘difficult, uncertain and deteriorating market conditions’ for its decision.
Property experts, however, said low- to mid-range properties may be the one bright spark in the property market.
Mr Ming said the popularity of recently launched ‘mass market’ condominiums like Caspian and Mi Casa showed that there was still a healthy demand for cheaper, suburban projects.
Mr Karamjit Singh, managing director of Credo Real Estate, noted that the eight collective sale projects which found buyers last year were of lower value.
The experts agreed that any return to the collective sales peak in 2007 was not possible for now.
Mr Ming said: ‘Right now, I don’t see any return of significant interest in en bloc sales, not until the economic outlook becomes more certain.’
Source : Sunday Times - 5 Apr 2009
The once fever-hot collective sale market is now stone-cold, and property experts predict it will take at least five years for transactions to reach the pitch seen before.
At the height of the property boom in 2007, 116 collective sales were completed. This figure was whittled down to just eight last year, after the onslaught of the global economic crisis.
There was no collective sale done in the first three months of this year.
Industry players expect the market to stay dormant in the coming months as developers remain mindful of the lukewarm response to new residential launches and have also to contend with high construction costs and tighter credit measures.
Mr Steven Ming, Savills Singapore’s director for investment sales, said: ‘At this point, developers are not on an acquiring mode, not until they have cleared their inventory of apartments bought over the last few years.’
Most collective sale sites put up for tender late last year have closed without any bids.
They include Spanish Village in Farrer Road, Villa delle Rose off Holland Road and Elizabeth Towers in Mount Elizabeth.
Two months ago, developer Jewel 1 pulled out 20 days before a planned $44 million purchase of Cairnhill Heights. It cited ‘difficult, uncertain and deteriorating market conditions’ for its decision.
Property experts, however, said low- to mid-range properties may be the one bright spark in the property market.
Mr Ming said the popularity of recently launched ‘mass market’ condominiums like Caspian and Mi Casa showed that there was still a healthy demand for cheaper, suburban projects.
Mr Karamjit Singh, managing director of Credo Real Estate, noted that the eight collective sale projects which found buyers last year were of lower value.
The experts agreed that any return to the collective sales peak in 2007 was not possible for now.
Mr Ming said: ‘Right now, I don’t see any return of significant interest in en bloc sales, not until the economic outlook becomes more certain.’
Source : Sunday Times - 5 Apr 2009
Wednesday, April 1, 2009
Property prices down in Q1
Posted by goldenpeace on 01-Apr-2009
Prices for private property and public housing fell steeply in the first three months of the year.
In the Housing and Development Board (HDB) resale market, the first drop since 2006 was seen.
HDB’s flash estimate, based on its Resale Price Index, showed a decline of 0.6 per cent in the first quarter compared to the fourth quarter of last year, which had registered a 1.4 per cent increase.
As for private residential property, flash estimates from the Urban Redevelopment Authority (URA) showed prices were down 13.8 per cent in the three months to March.
That was more than twice as steep as the six per cent decline in the fourth quarter of last year.
Based on geographical regions, prices in the “rest of central region” fell the steepest, at more than 17 per cent compared to 6.2 per cent in the fourth quarter.
Prices of non-landed private residential properties decreased by 15.2 per cent in the “core central region”, much higher than the 6.5 per cent fall seen in late 2008.
Prices “outside the central region” fell 7.5 per cent, compared to the 5.9 per cent drop seen in the previous quarter.
The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter, supplemented by information on the number of new units sold.
Source : CNA - 1 Apr 2009
Prices for private property and public housing fell steeply in the first three months of the year.
In the Housing and Development Board (HDB) resale market, the first drop since 2006 was seen.
HDB’s flash estimate, based on its Resale Price Index, showed a decline of 0.6 per cent in the first quarter compared to the fourth quarter of last year, which had registered a 1.4 per cent increase.
As for private residential property, flash estimates from the Urban Redevelopment Authority (URA) showed prices were down 13.8 per cent in the three months to March.
That was more than twice as steep as the six per cent decline in the fourth quarter of last year.
Based on geographical regions, prices in the “rest of central region” fell the steepest, at more than 17 per cent compared to 6.2 per cent in the fourth quarter.
Prices of non-landed private residential properties decreased by 15.2 per cent in the “core central region”, much higher than the 6.5 per cent fall seen in late 2008.
Prices “outside the central region” fell 7.5 per cent, compared to the 5.9 per cent drop seen in the previous quarter.
The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter, supplemented by information on the number of new units sold.
Source : CNA - 1 Apr 2009
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