Ascentia SKY - Preview Soon

One of the most desirable city area locations, facing Tanglin GCB yet positioned to live conveniently near an existing MRT station.



SUPER HIGH-RISE ARCHITECTURE - BOLD & TRENDY DESIGN

- 1st Level E-deck facilities
> Grand Arrival Plaza
> Rejuvenate E-deck - 50m lap pool
> Pavilion Promenade

- Multiple lifestyle sky gardens with themed facilities
> Level 3 with Stardust Gourment Club
> Level 7 with Cosmos Snooker Loft and Games Loft
> Level 12 with Rainbow Play Zone
> Level 17 with Astro Interactive Loft and Leisure Loft
> Level 22 with Supernova Fitness Suite
> Level 26 with i-Quiz Loft and iQuest Loft
> Level 31 with Vanda Tea Garden
> Level 36 with Starlight Reflection Loft and Relaxation Loft
> Level 41 with Zen Fitness Garden
> Level 45 with Cloud9 Banquet Penthouse Suite

Analysts say S'pore property market could pick up this year

Posted by goldenpeace on 20-May-2009

Brokerage DBS Vickers said the Singapore private property market could pick up this year.
In a research report, the firm said the prices of mass market private homes are likely to rise by the second half of this year if demand continues to hold.

Mid-tier private residential homes, meanwhile, could see price stability towards the later part of the year.

However, DBS Vickers added that the high-end segment will remain subdued for at least the next few months.

The brokerage noted that developers have launched more new homes for sale in April, with buyers eyeing a wide variety of projects in different locations.

Last Friday, data released by the Urban Redevelopment Authority showed that private home sales for April remained strong, with some 1,200 units sold.

Source : CNA – 18 May 2009

More property launches on buying interest

Posted by goldenpeace on 18-May-2009

DEVELOPERS are riding the wave of buying interest to launch more units.

CapitaLand yesterday released 100 two and three-bedroom units at The Wharf Residence, a 999-year leasehold condominium near Mohamed Sultan Road which comprises 173 apartments and 13 shophouses.

The group sold 85 units – mostly two-bedders – at an average price of between $1,300 and $1,600 per square foot (psf).

Sizes of two-bedroom units start at 1,012 sq ft. Assuming a price of $1,300 psf, one would cost about $1.32 million.

Some of the 100 units released yesterday were the remainder from an earlier launch.

According to Urban Redevelopment Authority (URA) records, CapitaLand introduced 80 units to the market in July last year and sold 24 until September that year at median prices above $1,500 psf.

The Wharf Residence is expected to receive its temporary occupation permit in 2013.
CapitaLand is offering buyers a package deal of stamp duty absorption and interest absorption.

BT understands that those who do not take up this package may get to pay up to 8 per cent less.

CapitaLand could make more units available today as the launch stretches into the weekend.

The release of more units at The Wharf Residence comes as activity in the higher end of the property market is starting to stir. According to URA’s April statistics, buyers snapped up 64 units out of 75 launched at Bukit Sembawang Estates’ Verdure at Holland Road. The median price of the transactions was $1,416 psf.

‘Sentiment is better now,’ said Knight Frank executive director (residential) Peter Ow. Some buyers feel that property prices have dropped enough, he added.

And even if prices have not bottomed, they believe that there is probably ‘no harm in going in now, rather than letting money sit in the bank’. Some buyers are also worried about missing out on a real estate recovery, he said.

Separately, Frasers Centrepoint mentioned at its results briefing last week that it will launch its Woodleigh project in July or August this year. Prices will be at a level that ‘the market will accept’, said its chief executive, Lim Ee Seng.

The company’s Caspian at Lakeside has seen strong take-up since its launch in February. Of the 712 units in the development, 611 had been sold as at May 7, Frasers Centrepoint said.

Source : Business Times – 16 May 2009

Prices creep up after property's long dive

Posted by goldenpeace on 13-May-2009

Some developers have quietly started raising prices a notch as they test waters after strong sales volumes seen in the first quarter.

Price adjustments are often made by reducing discount levels. On a project average basis, the effective prices for some developments may have gone up between 2 and 5 per cent compared with levels earlier this year, according to developers and property consultants.

‘Developers aren’t raising prices overnight. Prices are being adjusted only after clear buying momentum has set in for a project. If you look at the first and last units sold in the project, the price difference could be, say, 10 per cent; but if you look on a project average basis, the price increase would be less than 5 per cent,’ says Knight Frank chairman Tan Tiong Cheng.

The recent stock market rally has generated its share of positive sentiment. Even so, property agents say that prices of only the better-selling units have been raised in some projects, while the others have seen more widespread rises. ‘Developers are careful; if they push up prices too fast, potential buyers may start looking at other projects,’ one agent said.

The recent price adjustments have to be viewed against the significant price declines before that, seasoned players point out. For instance, Q1 2009 prices of mass-market condos were about 10 per cent off the peak levels in late 2007/early 2008, while for luxury condos, the price decline was steeper, at around 30-40 per cent.

DTZ executive director Ong Choon Fah says that developers started to inch up prices in April and May from Q1 levels. ‘In the secondary market, sellers have been more aggressive; some are asking about 5 to 10 per cent more than in Q1,’ she added.

Property giant Far East Organization’s residential projects such as the Mi Casa condo in Choa Chu Kang, The Lakeshore in Jurong, Hillview Regency in Bukit Batok, Floridian at Bukit Timah Road (non-premium units), and Vida at Peck Hay Road are among those that have seen slight price gains lately.

Rival City Developments is also said to have incrementally raised prices for The Arte at Thomson as sales progressed briskly. The developer has sold more than 250 units since it previewed the mid-end project in March.

BT understands that prices of the remaining 80-plus units have been adjusted upwards slightly this week. The average price is now about $900 psf and the freehold project includes a mix of two-, three- and four-bedroom units.

Bukit Sembawang is also said to have introduced a single-digit per cent price hike for later units (apartments) at The Verdure at Holland Road after the initial batch of units were sold.

UOL Group and Kheng Leong are also understood to have upped prices selectively – for better-selling units – at The Double Bay Residences in Simei.

A major developer said: ‘Demand is better now. People are prepared to come to the negotiating table and not baulk at prices, compared with last year when it was very difficult to even get buyers to sit down. I think there’s a sense that the worst is over.’

He says that the quantum of price appreciation that a developer can achieve in the current market will hinge on a project’s location, the nature of the development and the profile of its buyers. ‘For instance, for a prime district project with a lot of small units costing $1-2 million each, you can adjust prices a bit more, especially if you have a fair number of foreign buyers,’ according to the developer. ‘Mainland Chinese buyers are more optimistic, and can accept price hikes better as they have seen an upturn in their own property market,’ he added.

Mr Tan says that there’s currently a ’sweet spot’ in the Singapore market for projects priced below $1,000 psf and on a lump-sum basis costing $1 million to $1.2 million per unit (for three-bedroom units) and $800,000 and below (for two-bedroom units). Their prices can take a sub-10 per cent increase without affordability being seriously dented.

Mr Tan argues that a small price increase will not generally price buyers out of the market or send them to the sidelines again – ‘especially if they think the worst is over and don’t want to miss the boat’.

‘Even if the view is that we’re not at the bottom yet, there seems to be a greater sense of price stability now. The thinking now is that if prices drop a further 5 or 10 per cent, can I live with it? Three months ago, there seemed to be no bottom,’ Mr Tan recalls.

Agreeing, CB Richard Ellis executive director (residential) Joseph Tan says: ‘Once people are more confident, they can accept the fact that price may be higher, but in an improving situation. If I believe the market has bottomed, the closer I buy to the bottom, the better it is for me. That sort of thinking is also being fuelled by the stock market rally; traditionally the residential property market lags the stock market by three to six months.’

Source : Business Times – 13 May 2009

Payment collected for 98% of sold RiverGate units

Posted by goldenpeace on 10-May-2009

PAYMENT has been collected for 98 per cent of the 542 condo units sold at CapitaLand’s RiverGate project since Temporary Occupation Permit (TOP) was obtained in March, the developer said yesterday.

Payment collection for the remaining 2 per cent, or 11 sold units, is ongoing, and the buyers have been served notice to pay up. The 11 units were ‘all sold separately to individual buyers under the deferred payment scheme (DPS)’, a CapitaLand spokeswoman said.

More than 90 per cent of the 542 RiverGate units sold were under DPS, she added. CapitaLand developed the 545-unit freehold condo in the Robertson Quay area through a 50:50 joint venture with Hwa Hong Corporation.

Asked what CapitaLand will do regarding the 11 buyers that have not paid up, the spokeswoman said: ‘For genuine homebuyers who may face difficulties meeting the payment obligations, we will address these on a case-by-case basis. We will see how we can lend our assistance within the constraints of the obligations under the securitisation structure.’

The progress payments and deferred payment receivables for sold units were securitised through special purpose vehicle Okeanos Investment Corporation, which in January 2007 issued US$477 million ($731 million) of floating rate notes due 2011.

With the proceeds collected for RiverGate so far, the US$477 million of notes are expected to be fully redeemed by the expected maturity date in June 2009, CapitaLand said in a statement yesterday.

RiverGate buyers who opted for DPS paid 20 per cent of the apartments’ price when booking them. Upon obtaining TOP, a further 65 per cent of the price is payable, with the balance of 15 per cent to be paid once the development obtains a Certificate of Statutory Completion and legal completion status from the authorities.

The 43-storey freehold project was launched in phases, with the initial phase in 2005 priced at $1,080 per square foot on average, and the final phase in 2006 priced at $1,600 psf on average. Units in the project have recently changed hands at about $1,200-1,380 psf.

Among those who bought RiverGate units from the developers is property fund manager Ferrell, which acquired 100 units in two tranches – 80 around Chinese New Year in 2005 and 20 later that year.

RiverGate is the first residential project in Singapore to be accorded landmark status by the Urban Redevelopment Authority in recognition of its strategic location and cutting-edge architectural design, CapitaLand pointed out yesterday.

‘At 43 storeys, the development towers above the predominantly 10-storey buildings in the vicinity,’ it said. ‘Against this urban landscape, the majority of RiverGate’s apartments enjoy views of the river and the business district city-scape.’

Source : Business Times – 8 May 2009

Will property recover faster than expected?

Posted by goldenpeace on 07-May-2009

MARKET turning points are very hard to spot. A recent example was the March 9 market bottom. Then, the world seemed a bleak place: we were in for a prolonged depression; banks were going to fail; many companies were going bankrupt and millions were going to lose their jobs and stay unemployed for years. That period also coincided with a spate of bad news from the Chinese companies listed in Singapore - the so-called S-chips. The cash wasn’t in the banks. The founders were losing control over their companies because they’d pledged their shares to financial institutions. Profit was overstated, and the companies’ status as going concerns was in question. One by one, the S-chips were getting suspended.

Under the never-ending onslaught of bad news, many investors threw in the towel and cashed out. By February, cash sitting on the sidelines was at its highest in more than 10 years. Government statistics showed that the amount of deposits of non-bank customers with domestic banking units and deposits with finance companies was equivalent to 99 per cent of the aggregate market value of all the stocks listed on the Singapore Exchange (SGX). The previous peak was in 2002, when the cash/market cap ratio was 91 per cent.

History has shown that such a high level of cash holdings portends strong upside in the equities market. The rebound did eventually come - almost out of the blue - and took many by surprise. The recovery - fuelled by sightings of ‘green shoots’ in the economy - has lasted eight weeks and equity prices have gained more than 40 per cent. But through it all, many analysts and fund managers still doubt the sustainability of the recovery.

So what do we make of the projections of most property consultants that private residential property will slump by 25-35 per cent this year? The forecasts suggest more downside for the rest of the year given that prices fell ‘only’ 14.1 per cent in the first quarter. But like the pundits in the stock market, there is a possibility that these consultants too will miss the market turning point. For one, the stock market leads the property market by 4-8 months. If the stock market remains buoyant, then there is a probability that the property market too will stabilise. And, as noted earlier, there is a lot of cash waiting to get into the market.

Already, there are signs that US real estate - the source of the current global financial crisis - is recovering. According to The New York Times, Sacramento (among the first US cities to fall victim to the real estate collapse) has seen investors and first-time buyers out in force competing for bargain-price foreclosures. Sales are up 45 per cent from last year, and the vast backlog of inventory has diminished. Progress is also visible in other hard-hit areas.

If so, one shouldn’t be too quick to dismiss the hope that the US property slump, just like the stockmarket slump, may end sooner than the doomsters think.

Source : Business Times - 7 May 2009

Preview - Belle Vue Residences

Project Name: Belle Vue Residences
Development Type: Condominium with Full Facilities except no Tennis Court
Location: 15/17/19/21/23/25/27/31/33 Oxley Walk
District: 09
Tenure: Freehold
Expected TOP: End 2011
Total: 176 units in 9 Blocks of 5-Storey Building
Unit Mix: 4 units per floor with Private Lift access
Preview Block 15 ~ 2-Bedroom Villas approximate 1,400 sq ft & 2,300 sq ft
~ 3-Bedroom Villas approximate 1,800 sq ft to 3,500 sq ft
~ 4-Bedroom Waterfront Villas approximate 2,200 sq ft to 3,900 sq ft
Amenities: Near Dhoby Ghaut MRT and Plaza Singapura, short distance to Orchard

Inspired by Nature
Belle Vue Residences is designed to parallel nature's exquisite simplicity. Its' organically-shaped unit layout, offers a new living arrangement and horizontal spatial experience. The branching pattern creates more wall surfaces, making possible for more windows, giving each apartment a unique set of views and allowing residents to enjoy an abundance of natural light and better ventilation.

A Harmonious Landscape
Belle Vue Residences is also as much about transcending trends, forsaking conventional ideas and creative innovative living spaces. The landscaping is an active interplay of nature and architecture.

Located on high sprawling ground of almost 248,000 square feet, all apartments are imaginatively configured and set in a sensitively-cultivated environment of lush landscapes, pathways, tropical gardens, water features and a host of recreational facilities creating Singapore's most livable urban oasis.

Developers meet valuers in search for common ground

Posted by goldenpeace on 01-May-2009

Developers last week held a meeting with valuers amid recent complaints in some quarters that conservative valuations have derailed some home sale deals as potential buyers could not secure the required loan quantum from banks.

BT understands that the valuers disagreed with the developers that their valuations had been too conservative, and that it was the banks that were just not lending.

‘Generally, if there are transactions, we’ll match (with valuations). It’s the banks that are more cautious about lending to certain profiles of borrowers like investors, especially if they are foreigners,’ a valuer told BT.

The valuers also raised issues that they had been facing in recent months, such as a dearth of comparable transactions, and explained the methods that they use to arrive at valuations in such situations.

‘We explained that some banks require valuers to look at three comparable transactions, and how we generally do not take into account outlier transactions that may perhaps reflect ‘depressed’ prices,’ another valuer said.

Sources say that the meeting was amicable, drawing more than 20 valuers and heads of property consulting groups and the executive committee members of the Real Estate Developers Association of Singapore led by its president, Simon Cheong.

When contacted, a Redas spokesman said: ‘We wanted to better understand issues that valuers may have in their day-to-day valuation and what else the profession may need from developers to enable them to give (as) updated and relevant (a) valuation as possible.

‘The discussions were general in nature and discrepancies in valuations in some instances were highlighted and analysed. Valuers shared with us some of the constraints they are facing such as the lack of or insufficient comparable sales data and other issues.

‘The session was fruitful as it helped us understand one another better and we agreed to look into areas where communication and interaction could be improved upon.’

A property consultant told BT that he found it odd that the same banks that were willing to give a 75 per cent or 80 per cent loan on a high-end residential unit when it was priced at $2,000 psf (thus assuming an exposure for about $1,500 to $1,600 psf) are now reluctant to give even 50 or 60 per cent loan when the property is going for a much lower price of $1,200 psf (which works out to $600-720 psf exposure for the bank).

‘It’s particularly difficult for foreign buyers, even PRs in some instances, to get loans for investment properties. Banks are more willing to lend to Singaporeans buying residential properties for owner occupation.

‘Some of the bigger banks should take the lead and be more proactive in lending to property buyers, not just for entry-level but also luxury homes, given that spot prices have already come off about 40 per cent.’

Agreeing, another valuer said: ‘We provide the valuations. It’s up to the banks whether they want to lend, and how much. It’s a commercial decision for them.’

Giving his take on the challenges facing the profession, a senior valuer said: ‘We have to be as level headed as possible and (assign) a sensible value. Valuers play a very important role in the financial system and economy, as we’re marking everybody’s asset values.’

This was the first time Redas has met valuers as a group, at least in recent years, and this follows its maiden meeting in November with analysts in stockbroking research houses covering the sector.

Redas also holds regular dialogues with government agencies such as Urban Redevelopment Authority, and Building and Construction Authority. ‘Such dialogues provide learning opportunities for Redas and promote better understanding across the industry leading to a healthy property market,’ the association’s spokesman added.

Source : Business Times - 29 Apr 2009

S&P Global Property Index falls 19.8% in Q1

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

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

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

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

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

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

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

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

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

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

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

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