Source : The Business Times
Aug 11, 2007
HOTEL Properties managing director Ong Beng Seng and his family members have bought an entire block of 180 apartments at Costa del Sol on Bayshore Road, for about $200.77 million or $820 per square foot, BT understands.
The units were sold by the 99-year leasehold project's developer, Japura Development Pte Ltd, a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings. The 906-unit condo is now fully sold, concluding a 10-year episode for Japura. It bought the site for the condo in early 1997.
The shareholders in the entities that bought Costa del Sol's final block are said to include Mr Ong, his wife Christina, her brother David Fu and his wife. Mr Ong's brother, Beng Huat, also has a small stake.
The deal is said to have been driven by Mr Fu. All the 180 units in Block 70 boast unobstructed views of East Coast Park and the sea. They were sold for between $700 psf and $950 psf. The 180 apartments have a combined floor area of nearly 245,000 sq ft.
'The apartments are leased, which means the Ongs and Fus can enjoy immediate rental return on their investment; plus they can look forward to reaping capital appreciation in the not-too-distant future as this segment of the market has not gone up much,' said a seasoned market watcher.
Going by two recent deals in two other blocks in the development - $844 psf for a low-floor apartment and $1,108 psf for a higher-floor unit - the Ong/Fu consortium seems to be already in the money on its investment. The sale of the 180 apartments means that Japura has now fully sold the 906-unit condo, seven long years after it began marketing the project in May 2000. Japura's initial average price was $765 psf but by February 2005, it had trimmed this to $650 psf for a relaunch of about 600 available units then. The project, comprising seven 30-storey blocks, received Temporary Occupation Permit between 2003 and 2004.
Japura paid $683 million or $456 psf of potential gross floor area for the 427,300 sq ft site in January 1997, before the Asian financial crisis hit. Its bid was considered aggressive then, at least 30 per cent above market expectations. The second highest bid in that tender was $351 psf per plot ratio, made by a joint venture between Pidemco Land (now part of CapitaLand) and Malayan Credit (now known as MCL Land).
Monday, August 13, 2007
Sunday, August 12, 2007
Sizzling real estate sector
Source : The Business Times
Aug 9, 2007
AFTER years of being in the doldrums, the Singapore property market has been staging a spectacular recovery in the past couple of years. The rally is being fuelled by a surge in confidence from foreign investors as well as local buyers. The real estate sector is firing on all cylinders, including investment sales, residential and office.
A whopping $24.81 billion worth of investment sale deals were sealed in the first six months of this year, according to CB Richard Ellis (CBRE). Investment sale deals - a gauge of major property players' confidence level in the mid-to-long-term prospects for the real estate sector - include collective sales, other land deals, transactions of entire office and other buildings, as well as strata-titled units above $5 million. The first half of 2007's sparkling investment sale numbers include some 75 collective sales worth $9.3 billion, higher than $8.2 billion for the whole of last year.
CBRE expects the full-year investment sale figure to surpass the record $30.51 billion set in 2006, hitting as high as $35 billion.
Major deals in H1 this year include the $1.04 billion sale of Temasek Tower, the collective sale of Leedon Heights ($835 million) and Novotel Clarke Quay Hotel ($201 million).
In the residential sector, the Urban Redevelopment Authority's (URA) Q2 price index for private homes was up 8.3 per cent from the preceding quarter and 21 per cent higher year on year. And latest Q2 official figures show that the residential price recovery that began some two years ago in the high-end segment fuelled by foreign buyers has started filtering down to other segments of the market, based on URA's sub-indices.
Prices of non-landed private homes in the Core Central Region (CCR) - which includes prime districts 9, 10, 11, Downtown Core (including Marina Bay) and Sentosa - were up 7.9 per cent in Q2 over Q1, while prices of non-landed homes in Rest of Central Region (RCR) - which includes areas like Bukit Merah, Queenstown, Geylang, Toa Payoh and Katong - rose 8.1 per cent over the same period. The Outside Central Region (OCR), covering suburban mass-market locations like Woodlands, Clementi, Jurong, Hougang, Tampines and Bedok, posted a 7.2 per cent quarter-on-quarter rise in Q2.
The rental market has also been sizzling, with residential rental indices of non-landed private homes rising 12 per cent in Q2 over Q1 for the CCR, and by 10 per cent and 9.4 per cent respectively for RCR and OCR in the same period. The Q2 rental indices were up around 35 per cent from a year ago for each of the CCR and RCR, and by 28.3 per cent for OCR.
In the public housing segment, the Housing & Development Board's (HDB) resale flat price index rose 3 per cent quarter-on-quarter in Q2, compared with a 1.3 per cent gain in Q1.
The outlook for the residential sector is bright. Most property consultants predict that URA's overall private home price index may surge a further 8 to 15 per cent in the second half, chalking a full-year increase of 23 to 30 per cent. Analysts generally expect HDB resale flat prices to post an 8 to 10 per cent full-year increase.
Interestingly, collective sales have caused a ripple effect. For instance, those who sell their homes through en bloc sales are looking for replacement homes, in many cases outside the prime districts where they sold their en bloc properties because of rapidly rising prices in the prime locations.
This has helped to spur a recovery in the other market segments, even HDB resale flats, where a few units have been purchased at record prices by those who sold their private homes through en bloc sales.
At the same time, as developers pull down en bloc sale sites to redevelop them, the resulting shortage of prime district apartments has helped fuel rental hikes for such homes. In the industrial property market, average rents for all categories of space increased in Q2 this year. High-tech space posted the biggest quarter-on-quarter gain of 11.9 per cent to $2.35 psf per month, as the office space shortage and rising office rentals led many qualifying occupiers to move to high-tech properties, according to CBRE. The average monthly prime retail rent along Orchard Road posted a 1.8 per cent quarter-on quarter gain in Q2 to $34.40 psf - close to the $35.10 psf achieved in 1996.
As for the office sector, a shortage of space in the near term, coupled with strong demand from occupiers including big-wig international financial institutions have been the key factors driving a whopping 80 per cent year-on-year rise in CBRE's average prime rental in Q2 to $10.80 psf a month. This surpassed the 1996 peak of $9.90 psf a month, and is fast closing in on the 1990 historic peak of $11.50 psf a month. The Q2 office rental figure is also more than double the $4 psf during the current cycle trough in Q1 2004.
Market watchers expect office rents to head further north in the next few years because of the supply crunch. However, the government has been releasing more office sites, including the maiden 'transitional office' plot which can be built into a low-rise office building in about a year.
In addition, it has made available more 99-year condo sites, mostly in suburban locations. Besides tackling the supply side, the authorities have also begun releasing more property market data so that participants can make more informed decisions. So far, the indication from government is that it is not inclined to intervene to cool demand.
Fundamentals for the Singapore real estate sector remain strong for the next couple of years, at least - barring unforeseen circumstances.
Of course, a sustained rout in the local stock market because of the selldown on Wall Street is likely dent sentiment in the Singapore property market. But there could also be a more direct hit if the US sub-prime mortgage default fiasco dries up some of the liquidity that has been powering the local real estate sector's sparkling recovery.
Aug 9, 2007
AFTER years of being in the doldrums, the Singapore property market has been staging a spectacular recovery in the past couple of years. The rally is being fuelled by a surge in confidence from foreign investors as well as local buyers. The real estate sector is firing on all cylinders, including investment sales, residential and office.
A whopping $24.81 billion worth of investment sale deals were sealed in the first six months of this year, according to CB Richard Ellis (CBRE). Investment sale deals - a gauge of major property players' confidence level in the mid-to-long-term prospects for the real estate sector - include collective sales, other land deals, transactions of entire office and other buildings, as well as strata-titled units above $5 million. The first half of 2007's sparkling investment sale numbers include some 75 collective sales worth $9.3 billion, higher than $8.2 billion for the whole of last year.
CBRE expects the full-year investment sale figure to surpass the record $30.51 billion set in 2006, hitting as high as $35 billion.
Major deals in H1 this year include the $1.04 billion sale of Temasek Tower, the collective sale of Leedon Heights ($835 million) and Novotel Clarke Quay Hotel ($201 million).
In the residential sector, the Urban Redevelopment Authority's (URA) Q2 price index for private homes was up 8.3 per cent from the preceding quarter and 21 per cent higher year on year. And latest Q2 official figures show that the residential price recovery that began some two years ago in the high-end segment fuelled by foreign buyers has started filtering down to other segments of the market, based on URA's sub-indices.
Prices of non-landed private homes in the Core Central Region (CCR) - which includes prime districts 9, 10, 11, Downtown Core (including Marina Bay) and Sentosa - were up 7.9 per cent in Q2 over Q1, while prices of non-landed homes in Rest of Central Region (RCR) - which includes areas like Bukit Merah, Queenstown, Geylang, Toa Payoh and Katong - rose 8.1 per cent over the same period. The Outside Central Region (OCR), covering suburban mass-market locations like Woodlands, Clementi, Jurong, Hougang, Tampines and Bedok, posted a 7.2 per cent quarter-on-quarter rise in Q2.
The rental market has also been sizzling, with residential rental indices of non-landed private homes rising 12 per cent in Q2 over Q1 for the CCR, and by 10 per cent and 9.4 per cent respectively for RCR and OCR in the same period. The Q2 rental indices were up around 35 per cent from a year ago for each of the CCR and RCR, and by 28.3 per cent for OCR.
In the public housing segment, the Housing & Development Board's (HDB) resale flat price index rose 3 per cent quarter-on-quarter in Q2, compared with a 1.3 per cent gain in Q1.
The outlook for the residential sector is bright. Most property consultants predict that URA's overall private home price index may surge a further 8 to 15 per cent in the second half, chalking a full-year increase of 23 to 30 per cent. Analysts generally expect HDB resale flat prices to post an 8 to 10 per cent full-year increase.
Interestingly, collective sales have caused a ripple effect. For instance, those who sell their homes through en bloc sales are looking for replacement homes, in many cases outside the prime districts where they sold their en bloc properties because of rapidly rising prices in the prime locations.
This has helped to spur a recovery in the other market segments, even HDB resale flats, where a few units have been purchased at record prices by those who sold their private homes through en bloc sales.
At the same time, as developers pull down en bloc sale sites to redevelop them, the resulting shortage of prime district apartments has helped fuel rental hikes for such homes. In the industrial property market, average rents for all categories of space increased in Q2 this year. High-tech space posted the biggest quarter-on-quarter gain of 11.9 per cent to $2.35 psf per month, as the office space shortage and rising office rentals led many qualifying occupiers to move to high-tech properties, according to CBRE. The average monthly prime retail rent along Orchard Road posted a 1.8 per cent quarter-on quarter gain in Q2 to $34.40 psf - close to the $35.10 psf achieved in 1996.
As for the office sector, a shortage of space in the near term, coupled with strong demand from occupiers including big-wig international financial institutions have been the key factors driving a whopping 80 per cent year-on-year rise in CBRE's average prime rental in Q2 to $10.80 psf a month. This surpassed the 1996 peak of $9.90 psf a month, and is fast closing in on the 1990 historic peak of $11.50 psf a month. The Q2 office rental figure is also more than double the $4 psf during the current cycle trough in Q1 2004.
Market watchers expect office rents to head further north in the next few years because of the supply crunch. However, the government has been releasing more office sites, including the maiden 'transitional office' plot which can be built into a low-rise office building in about a year.
In addition, it has made available more 99-year condo sites, mostly in suburban locations. Besides tackling the supply side, the authorities have also begun releasing more property market data so that participants can make more informed decisions. So far, the indication from government is that it is not inclined to intervene to cool demand.
Fundamentals for the Singapore real estate sector remain strong for the next couple of years, at least - barring unforeseen circumstances.
Of course, a sustained rout in the local stock market because of the selldown on Wall Street is likely dent sentiment in the Singapore property market. But there could also be a more direct hit if the US sub-prime mortgage default fiasco dries up some of the liquidity that has been powering the local real estate sector's sparkling recovery.
UOB tightens up on home loans in face of dizzy market
Source : The Business Times
Aug 9, 2007
(SINGAPORE) Wee Cho Yaw has done it again, though only time will tell if he was ahead of the curve.
At a time when property prices have started to touch giddy heights, the chairman of United Overseas Bank (UOB) has reportedly asked his institution to tighten lending criteria.
Since late last month, UOB has been lending only 80 per cent of a home's valuation, even though most banks are willing to stump up 90 per cent of the selling price.
UOB has also decided to put its own cap on valuations, which appear more conservative than the current market prices.
Mr Wee, arguably Singapore's sharpest banker, stepped down as chief executive of UOB in April this year and was succeeded by his oldest son, Ee Cheong.
UOB's stricter lending criteria mean that some potential borrowers have been turned away. A UOB mobile sales banker complained that she has been losing sales but has told prospective customers that she can try to appeal on their behalf. UOB is believed to be the first bank to make its lending norms more stringent.
At UOB's second-quarter results on Tuesday, Eddie Khoo, executive vice-president, personal financial services, said that less than 10 per cent of the bank's new home loans this year provided more than 80 per cent financing.
'We require a higher cash portion,' said Mr Khoo.
He said that more than 80 per cent of UOB's home loans were for owner occupation and that
foreigners accounted for 20 per cent of home loan customers.
For certain hot projects in the prime districts such as Orchard Residences, Scotts Square or St Regis Residences, UOB has put a valuation cap of $3,600 per square foot (psf), even though sales and sub-sales have been reported at much higher prices.
Scotts Square, launched last week, saw 169 units sold at an average price of $3,983 psf. The highest price paid was $4,430 psf for a one-bedroom apartment on the 41st floor, of the 338-unit project, said Wheelock Properties, the developer.
The median price for St Regis Residences on Cuscaden Road, developed by City Developments, is $3,713 psf, according to Urban Redevelopment Authority data. In June, it was reported that a unit went for $4,635 psf at the 173-unit St Regis Residences which has only 15 units unsold.
At selected projects in the upmarket districts 9, 10, 11 and in Marina Bay, UOB is said to have set the valuation cap at not more than $2,600 psf.
Sub-sales of The Sail @ Marina Bay are being advertised at prices ranging from $1,900 psf to over $3,500 psf. Caveats lodged show that units were sold from prices as low as $1,249 psf for The Sail which was first launched in 2004.
Even for the recently launched Fontaine Parry near Serangoon, UOB is said to have a valuation cap of $834 psf. According to sole agent Knight Frank, the first phase of Fontaine Parry, which was sold out, saw prices starting at $850 psf and some sub-sales are now going for $900 psf.
For the first half of 2007, UOB grew its total home loans book 18 per cent, outpacing the industry average, to $20.7 billion. DBS's group home loans rose 8.75 per cent to $26.1 billion. UOB said Singapore mortgages were up 15 per cent while DBS reported an almost similar growth of 14 per cent.
In August 1995, Mr Wee said famously: 'I don't think the property market will collapse but prices have reached a high and the upside is limited.'
Although still sympathetic to first-time property buyers or HDB upgraders, he said the bank had more stringent criteria for speculative buyers and those investing in second properties.
The strategy meant that UOB lost some market share in property loans.
UOB that year reduced financing to only 65-70 per cent of the purchase price of a property, compared to about 90 per cent in 1992, just before the height of the property frenzy which peaked in 1996 before crashing.
Singapore's property market subsequently went into a long depression, which lasted for the most part of the decade until 2003 and sent many borrowers into negative equity - where the size of their loan was larger than the value of their property.
The bank is opting for caution again.
Said a spokesman: 'UOB has always taken a prudent approach in its credit assessment process. A loan application is assessed on the creditworthiness of the borrower as well as the merits of the property. We would consider the loan application favourably if the borrower meets our criteria. From time to time, the bank reviews its home mortgage policies, and if necessary, adjustments may be made to align with market conditions.'
Aug 9, 2007
(SINGAPORE) Wee Cho Yaw has done it again, though only time will tell if he was ahead of the curve.
At a time when property prices have started to touch giddy heights, the chairman of United Overseas Bank (UOB) has reportedly asked his institution to tighten lending criteria.
Since late last month, UOB has been lending only 80 per cent of a home's valuation, even though most banks are willing to stump up 90 per cent of the selling price.
UOB has also decided to put its own cap on valuations, which appear more conservative than the current market prices.
Mr Wee, arguably Singapore's sharpest banker, stepped down as chief executive of UOB in April this year and was succeeded by his oldest son, Ee Cheong.
UOB's stricter lending criteria mean that some potential borrowers have been turned away. A UOB mobile sales banker complained that she has been losing sales but has told prospective customers that she can try to appeal on their behalf. UOB is believed to be the first bank to make its lending norms more stringent.
At UOB's second-quarter results on Tuesday, Eddie Khoo, executive vice-president, personal financial services, said that less than 10 per cent of the bank's new home loans this year provided more than 80 per cent financing.
'We require a higher cash portion,' said Mr Khoo.
He said that more than 80 per cent of UOB's home loans were for owner occupation and that
foreigners accounted for 20 per cent of home loan customers.
For certain hot projects in the prime districts such as Orchard Residences, Scotts Square or St Regis Residences, UOB has put a valuation cap of $3,600 per square foot (psf), even though sales and sub-sales have been reported at much higher prices.
Scotts Square, launched last week, saw 169 units sold at an average price of $3,983 psf. The highest price paid was $4,430 psf for a one-bedroom apartment on the 41st floor, of the 338-unit project, said Wheelock Properties, the developer.
The median price for St Regis Residences on Cuscaden Road, developed by City Developments, is $3,713 psf, according to Urban Redevelopment Authority data. In June, it was reported that a unit went for $4,635 psf at the 173-unit St Regis Residences which has only 15 units unsold.
At selected projects in the upmarket districts 9, 10, 11 and in Marina Bay, UOB is said to have set the valuation cap at not more than $2,600 psf.
Sub-sales of The Sail @ Marina Bay are being advertised at prices ranging from $1,900 psf to over $3,500 psf. Caveats lodged show that units were sold from prices as low as $1,249 psf for The Sail which was first launched in 2004.
Even for the recently launched Fontaine Parry near Serangoon, UOB is said to have a valuation cap of $834 psf. According to sole agent Knight Frank, the first phase of Fontaine Parry, which was sold out, saw prices starting at $850 psf and some sub-sales are now going for $900 psf.
For the first half of 2007, UOB grew its total home loans book 18 per cent, outpacing the industry average, to $20.7 billion. DBS's group home loans rose 8.75 per cent to $26.1 billion. UOB said Singapore mortgages were up 15 per cent while DBS reported an almost similar growth of 14 per cent.
In August 1995, Mr Wee said famously: 'I don't think the property market will collapse but prices have reached a high and the upside is limited.'
Although still sympathetic to first-time property buyers or HDB upgraders, he said the bank had more stringent criteria for speculative buyers and those investing in second properties.
The strategy meant that UOB lost some market share in property loans.
UOB that year reduced financing to only 65-70 per cent of the purchase price of a property, compared to about 90 per cent in 1992, just before the height of the property frenzy which peaked in 1996 before crashing.
Singapore's property market subsequently went into a long depression, which lasted for the most part of the decade until 2003 and sent many borrowers into negative equity - where the size of their loan was larger than the value of their property.
The bank is opting for caution again.
Said a spokesman: 'UOB has always taken a prudent approach in its credit assessment process. A loan application is assessed on the creditworthiness of the borrower as well as the merits of the property. We would consider the loan application favourably if the borrower meets our criteria. From time to time, the bank reviews its home mortgage policies, and if necessary, adjustments may be made to align with market conditions.'
Saturday, August 4, 2007
For every high, there's a low
Source : Today
July 28, 2007
Clearer details in Q2 property picture
Loh Chee Kongcheekong@mediacorp.com.sg
HAD you been out looking for a place to rent or buy in the second quarter of this year, you would have found a number of good deals — the hot property market notwithstanding.
For instance — going by figures from the Urban Redevelopment Authority (URA) — one lucky owner snapped up a unit at The Raintree in Bukit Timah for $489 per square foot (psf). Units at Mariam Way's Ballota Park were rented out for as low as $1.29 psf a month.
Or, according to the Housing and Development Board (HDB), you could have bought a 5-room flat in Yishun for $273,800, or rented a four-room flat for anywhere between $1,000 and $1,400.
On the other hand, were you a landlord, you would have profited from the 18.7-per-cent surge in private home rents in the first six months of the year.
Apartment and condominium owners made 8.4 per cent more selling their units between April and June. Landed home sellers, who saw prices go up just 2.9 per cent in the first quarter, enjoyed a 7.1-per-cent surge this time.
On Friday, the HDB and the URA released the most detailed results ever of the property landscape, to give the public a more complete picture of its highs and lows — offsetting recent media reports that have focussed on the extreme highs.
For first time, the URA published new rental sub-indices for non-landed private housing across the three regional groupings, to reflect trends in different segments of the market. The HDB also took the unprecedented step of breaking down, by town and flat type, the median subletting rents as well as differences between resale price and market value.
The pRIVATE HOME SCENE
While overall prices of private homes went up 8.3 per cent, the URA stressed that the boom was not uniform.
Many uncompleted private residential projects in the suburban areas with "more affordable" prices were on tap, it pointed out. A "significant number" of units — 1,658 in all — languish unsold in many launched projects.
The number of new homes sold set a quarterly record of 12,897 units. But what seems significant is that speculators were not a big segment.
Sales of uncompleted homes, or sub-sales, are often used to measure speculative activity in the private home market.
Across the island, these accounted for 9.7 per cent of total sales — which pales in comparison to the 28-per-cent mark when speculation was rife in 1996 over the same period.
The bulk of the sales, or 42.4 per cent, were in suburban areas — a signal that the mass market has recovered, said a CB Richard Ellis report.
For the first time since 2005, too, price growth was led by non-landed homes in areas such as Marine Parade, Queenstown and Toa Payoh.
The en bloc frenzy, meanwhile, helped drive up private home rents by 10.4 per cent — the highest since the URA made such data publicly available, said a Knight Frank report.
But the windfall, again, was not even across the board. While the overall median monthly rental in Singapore rose to $2.17 psf, a number of properties were rented out at less than $1.50 psf.
Meanwhile, prospective homebuyers can look forward to a fat pipeline of supply over the next three years. There are 56,182 uncompleted units due to hit the market. Another 9,100 new units are expected from sites made available under the Government land sales programme and the three residential sites at Bishan, Dakota Crescent and Woodsville Close sold earlier this year.
THE HDB MARKET
HDB flat resale prices grew by 3 per cent on the whole, up from just 1.4 per cent the previous quarter.
While record-setting prices made the headlines, overall, the median amount by which actual resale prices exceeded market value was a modest $7,000.
In fact, 30 per cent of all resale transactions were priced at or below valuation — although in some instances, such as in Clementi where executive flats were sold at a median $65,000 above valuation, prices were grossly inflated.
Overall, activity was high in the resale market, with 8,708 deals being struck — a 38-per-cent increase over the first quarter.
Rentals also remained "affordable", despite a recent newspaper report that HDB rents had hit a 10-year high. The URA said these "very high" rents were limited to "very few" cases and were "confined to flats with special attributes".
There was a 50-per-cent jump in the number of sublet approvals issued by HDB, after it eased up on its subletting policy in March. In all, about 14,600 HDB flat owners have approval to sublet their flats.
WHAT'S AHEAD?
Given the rapid heating up of private home prices, property analysts are projecting that these could go up by as much as 30 per cent by the year's end.
CB Richard Ellis expects a total increase of 20 to 25 per cent for the year, with the number of new home sales hitting 16,000 to 18,000.
The forecast at Knight Frank was 23 to 30 per cent, but it is rentals that are expected to boom — growing by 30 to 40 per cent year-on-year, especially in prime districts. This, said the Knight Frank report, is due to a shrinking pool of housing as a result of recent collective sales.
ERA Singapore, which specialises in the HDB market, expects flat resale prices to rise by 8 to 10 per cent over the whole year, and the number of transactions to hit over 30,000.
"Home-buyers priced out of the private property market will be looking at larger flat types ... They in turn will push those that are priced out of buying larger flats to buy smaller, four-room types," said ERA vice-president Eugene Lim.
But, he added, "to enjoy a premium above market valuation, the property must have the X-factor": A combination of a central location, being relatively new and "nicely renovated", having an MRT station nearby, and being on "a high floor with unblocked panoramic views".
July 28, 2007
Clearer details in Q2 property picture
Loh Chee Kongcheekong@mediacorp.com.sg
HAD you been out looking for a place to rent or buy in the second quarter of this year, you would have found a number of good deals — the hot property market notwithstanding.
For instance — going by figures from the Urban Redevelopment Authority (URA) — one lucky owner snapped up a unit at The Raintree in Bukit Timah for $489 per square foot (psf). Units at Mariam Way's Ballota Park were rented out for as low as $1.29 psf a month.
Or, according to the Housing and Development Board (HDB), you could have bought a 5-room flat in Yishun for $273,800, or rented a four-room flat for anywhere between $1,000 and $1,400.
On the other hand, were you a landlord, you would have profited from the 18.7-per-cent surge in private home rents in the first six months of the year.
Apartment and condominium owners made 8.4 per cent more selling their units between April and June. Landed home sellers, who saw prices go up just 2.9 per cent in the first quarter, enjoyed a 7.1-per-cent surge this time.
On Friday, the HDB and the URA released the most detailed results ever of the property landscape, to give the public a more complete picture of its highs and lows — offsetting recent media reports that have focussed on the extreme highs.
For first time, the URA published new rental sub-indices for non-landed private housing across the three regional groupings, to reflect trends in different segments of the market. The HDB also took the unprecedented step of breaking down, by town and flat type, the median subletting rents as well as differences between resale price and market value.
The pRIVATE HOME SCENE
While overall prices of private homes went up 8.3 per cent, the URA stressed that the boom was not uniform.
Many uncompleted private residential projects in the suburban areas with "more affordable" prices were on tap, it pointed out. A "significant number" of units — 1,658 in all — languish unsold in many launched projects.
The number of new homes sold set a quarterly record of 12,897 units. But what seems significant is that speculators were not a big segment.
Sales of uncompleted homes, or sub-sales, are often used to measure speculative activity in the private home market.
Across the island, these accounted for 9.7 per cent of total sales — which pales in comparison to the 28-per-cent mark when speculation was rife in 1996 over the same period.
The bulk of the sales, or 42.4 per cent, were in suburban areas — a signal that the mass market has recovered, said a CB Richard Ellis report.
For the first time since 2005, too, price growth was led by non-landed homes in areas such as Marine Parade, Queenstown and Toa Payoh.
The en bloc frenzy, meanwhile, helped drive up private home rents by 10.4 per cent — the highest since the URA made such data publicly available, said a Knight Frank report.
But the windfall, again, was not even across the board. While the overall median monthly rental in Singapore rose to $2.17 psf, a number of properties were rented out at less than $1.50 psf.
Meanwhile, prospective homebuyers can look forward to a fat pipeline of supply over the next three years. There are 56,182 uncompleted units due to hit the market. Another 9,100 new units are expected from sites made available under the Government land sales programme and the three residential sites at Bishan, Dakota Crescent and Woodsville Close sold earlier this year.
THE HDB MARKET
HDB flat resale prices grew by 3 per cent on the whole, up from just 1.4 per cent the previous quarter.
While record-setting prices made the headlines, overall, the median amount by which actual resale prices exceeded market value was a modest $7,000.
In fact, 30 per cent of all resale transactions were priced at or below valuation — although in some instances, such as in Clementi where executive flats were sold at a median $65,000 above valuation, prices were grossly inflated.
Overall, activity was high in the resale market, with 8,708 deals being struck — a 38-per-cent increase over the first quarter.
Rentals also remained "affordable", despite a recent newspaper report that HDB rents had hit a 10-year high. The URA said these "very high" rents were limited to "very few" cases and were "confined to flats with special attributes".
There was a 50-per-cent jump in the number of sublet approvals issued by HDB, after it eased up on its subletting policy in March. In all, about 14,600 HDB flat owners have approval to sublet their flats.
WHAT'S AHEAD?
Given the rapid heating up of private home prices, property analysts are projecting that these could go up by as much as 30 per cent by the year's end.
CB Richard Ellis expects a total increase of 20 to 25 per cent for the year, with the number of new home sales hitting 16,000 to 18,000.
The forecast at Knight Frank was 23 to 30 per cent, but it is rentals that are expected to boom — growing by 30 to 40 per cent year-on-year, especially in prime districts. This, said the Knight Frank report, is due to a shrinking pool of housing as a result of recent collective sales.
ERA Singapore, which specialises in the HDB market, expects flat resale prices to rise by 8 to 10 per cent over the whole year, and the number of transactions to hit over 30,000.
"Home-buyers priced out of the private property market will be looking at larger flat types ... They in turn will push those that are priced out of buying larger flats to buy smaller, four-room types," said ERA vice-president Eugene Lim.
But, he added, "to enjoy a premium above market valuation, the property must have the X-factor": A combination of a central location, being relatively new and "nicely renovated", having an MRT station nearby, and being on "a high floor with unblocked panoramic views".
Tuesday, July 17, 2007
Napier, UE put 2 new projects on market
17 July, 2007
Source : The Business Times
TWO new projects have been put on the market - 8napier on the former Eng Lok Mansion site near Botanic Gardens, and The Rochester in the one-north precinct.
Prices at the 46-unit 8napier range from $4,000 to $4,500 per sq ft for apartments, and for now, the plan is to limit sales to just 10 to 12 apartments in the freehold development. 'We may sell another dozen or so apartments when our showflat is ready on site in a few months' time. But we plan to keep the rest of the project, including the six penthouses, for sale after the project is completed, which will probably be around end-2009,' Mark Wee, director of Napier Properties, said when contacted by BT yesterday.
The company, controlled by Mr Wee and former Parkway boss Tony Tan, is currently previewing the project at its office on the 21st floor of Ngee Ann City Tower A.
The 10-storey 8napier has 40 apartments (either three- or four-bedder units) and six penthouses.
All the penthouses are duplex units, ranging in size from more than 4,000 sq ft to nearly 6,000 sq ft. They are expected to be sold by auction.
The smallest three-bedder apartment in the project is just over 2,000 sq ft and is priced at about $8 million. 'All the units come fully loaded with top-notch lighting, sound system and kitchen equipment, bathroom fittings and the like, so that our buyers do not have to do any renovations as we are fitting the units to the highest standard currently available in the Singapore market. This should minimise the hassle of moving in,' Mr Wee said.
He declined to say how many units have been sold so far but buyers are understood to be a mix of foreigners and Singaporeans.
Over at one-north, United Engineers is believed to have priced The Rochester apartments in the $1,000 to $1,200 per sq ft range. UE could not provide the average price yesterday when contacted by BT. The 99-year leasehold project is opposite One North Residences, which was sold earlier this year at an average price of around $900-950 per sq ft, market watchers said.
The Rochester has a total of 368 residential units, including eight penthouses, in a 36-storey block. The project is part of a mixed development that also includes a 100,000 sq ft mall and hotel.
The entire project is slated for completion around 2009-10. The residential component comprises one, two, and three-bedroom apartments and penthouses. Some of the one-bedders are duplexes. UE began selling the units yesterday, according to its spokesman.
Source : The Business Times
TWO new projects have been put on the market - 8napier on the former Eng Lok Mansion site near Botanic Gardens, and The Rochester in the one-north precinct.
Prices at the 46-unit 8napier range from $4,000 to $4,500 per sq ft for apartments, and for now, the plan is to limit sales to just 10 to 12 apartments in the freehold development. 'We may sell another dozen or so apartments when our showflat is ready on site in a few months' time. But we plan to keep the rest of the project, including the six penthouses, for sale after the project is completed, which will probably be around end-2009,' Mark Wee, director of Napier Properties, said when contacted by BT yesterday.
The company, controlled by Mr Wee and former Parkway boss Tony Tan, is currently previewing the project at its office on the 21st floor of Ngee Ann City Tower A.
The 10-storey 8napier has 40 apartments (either three- or four-bedder units) and six penthouses.
All the penthouses are duplex units, ranging in size from more than 4,000 sq ft to nearly 6,000 sq ft. They are expected to be sold by auction.
The smallest three-bedder apartment in the project is just over 2,000 sq ft and is priced at about $8 million. 'All the units come fully loaded with top-notch lighting, sound system and kitchen equipment, bathroom fittings and the like, so that our buyers do not have to do any renovations as we are fitting the units to the highest standard currently available in the Singapore market. This should minimise the hassle of moving in,' Mr Wee said.
He declined to say how many units have been sold so far but buyers are understood to be a mix of foreigners and Singaporeans.
Over at one-north, United Engineers is believed to have priced The Rochester apartments in the $1,000 to $1,200 per sq ft range. UE could not provide the average price yesterday when contacted by BT. The 99-year leasehold project is opposite One North Residences, which was sold earlier this year at an average price of around $900-950 per sq ft, market watchers said.
The Rochester has a total of 368 residential units, including eight penthouses, in a 36-storey block. The project is part of a mixed development that also includes a 100,000 sq ft mall and hotel.
The entire project is slated for completion around 2009-10. The residential component comprises one, two, and three-bedroom apartments and penthouses. Some of the one-bedders are duplexes. UE began selling the units yesterday, according to its spokesman.
Tuesday, July 10, 2007
Soleil at Sinaran (Launched on 17 August)
Soleil, a shining beacon of architecture excellence, by Frasers Centrepoint Homes. With its truly distinctive contemporary glass facade and invigorating attention to stylist detail, Soleil reflects a modern sensibility much in demand with today's cosmopolitan buyers.
Located in prime district 11 at Novena, Soleil sits next to the Novena MRT, the Novena Square shopping centre, Velocity and entertainment outlets. It is also near to medical facilities such as the Thomson Medical Centres and Far East Medical Suites. It is an ideal place for the wealthy foreign families seeking long-term medical treatment and convalescence in Singapore.
Such coveted location offers residents quick and easy access to work places at the Central Business District and the Integrated Resort in Marina Bay, as well as the trendy shopping amenities at the Orchard Road.
A"lifestyle development" offering luxurious, distinctive styling and modern comforts that appeal particularly to young professionals because of the ease of commuting to work, play and entertainment places.
It has an excellent investment potential in terms of capital gains and rental returns. Inspired by the natural organic and sculptural architectural concepts, Soleil at Sinaran has a very unique building facade.
Soleil at Sinaran is also a wellness retreat - a home within a resort to escape from busy work schedule and urban hectic lifestyles. The amenities are superb - and intelligently designed to offer residents a fulfilling, serene lifestyle. It includes entertainment pavilions, spa cabanas and jacuzzis, making it a perfect venue for private events and poolside parties.
Soleil at Sinaran is also a wellness retreat - a home within a resort to escape from busy work schedule and urban hectic lifestyles. The amenities are superb - and intelligently designed to offer residents a fulfilling, serene lifestyle. It includes entertainment pavilions, spa cabanas and jacuzzis, making it a perfect venue for private events and poolside parties.
Soleil, where life shines a little brighter........
Developer : Riverside Investments Pte Ltd
Location : LOT 931T TS 29 at Sinaran Drive, beside Novena MRT
Tenure : Leasehold 99 years W.E.F 23 October 2006
Expected TOP : 30 September 2012
Expected Legal Completion : 30 September 2015
CSC : 30 September 2013
No. of Blocks / Storeys : 2 Blocks / 36 Storeys
Total No. of Units : 417
Site Area : Approx 134,160 sq ft
Plot ratio : 3.5
Unit Types :
1-Bedroom , 94 units, 509 - 579 sq ft
2-Bedroom, 109 units, 926 - 958 sq ft
2-Bedroom + study, 60 units, 1110 sq ft
2-Bedroom loft, 32 units, 1370 sq ft (include void)
3-Bedroom, 64 units, 1467 sq ft
4-Bedroom, 64 units, 1727 sq ft
5-bedroom penthouse, 4 units, 4972 - 5262 sq ft
Architect : Architect 61
Facilities : Recreational Pool, 50m lap pool, Children's Play Area, Spa Pavilion, Entertainment Pavilion, Recreational Tennis Court, Reflective Pool, Function Room, Gym.Changing Rooms, Outdoor/Fitness areas.
For Privileged Bookings or Early Bird Discounts, kindly register your interest at camiliang@gmail.com or call Camilia Ng at (+65) 9763-9937
Monday, July 2, 2007
S'pore home to world's fastest-growing population of millionaires
By Tung Shing Yi, Channel NewsAsia
28 June 2007
Singapore is home to the world's fastest-growing population of millionaires, according to the annual world wealth report compiled by Merrill Lynch and the Capgemini Group. The number of high net worth individuals in Singapore grew by 21.2% last year to reach almost 67,000 millionaires. Singapore's millionaire boom is part of a global trend that saw the number of high net worth individuals rise 8.3% to reach 9.5 million last year.
Among the super-rich are a group called the ultra-rich, with assets over US$30 million. The growth of these ultra high net worth individuals grew 11.3%, outpacing that of high net worth individuals and suggesting a growing concentration of wealth. "The main reasons for the growth in the number of high net worth individuals was GDP growth, which was about 8.2% in Singapore last year, and the strong market capitalisation growth reflected in the stock market.
Also, Singapore's strong savings rate has helped in the creation of wealth," said Kong Eng Huat, MD of Merrill Lynch, International Bank. India and Indonesia follow closely behind Singapore in the list of countries with the fastest-growing number of millionaires.
The survey also pointed out a growing preference among wealthy investors to put money into the real estate market. While the high-end luxury sector in Singapore has been seeing strong demand, Merrill Lynch sees the bull run spilling over to the mass market segment over the next three years.
Mark Matthews, senior director and chief Asia Strategist at Merrill Lynch said: "More and more people are coming to work in Singapore, and as a result of that, people will move out of Districts, 9, 10, 11, into areas like Bukit Timah or East Coast, and prices are increasing in these neighbourhoods as well.There's not enough in the private residential sector to meet demand. I believe there are only less than 40,000 vacant condominiums left in Singapore now, and we're expecting over 100,000 people to move here this year."
Global assets held by wealthy investors rose 11.4 percent to $37.2 trillion in 2006, but the growth rate is forecast to slow to 6.8% annually over the next four years. Going forward, Merrill Lynch expects more central banks to tighten monetary policy, bringing a possible end to the period of high liquidity that has stimulated recent growth. Growth rates in Asia are expected to ease back as global demand slows.
28 June 2007
Singapore is home to the world's fastest-growing population of millionaires, according to the annual world wealth report compiled by Merrill Lynch and the Capgemini Group. The number of high net worth individuals in Singapore grew by 21.2% last year to reach almost 67,000 millionaires. Singapore's millionaire boom is part of a global trend that saw the number of high net worth individuals rise 8.3% to reach 9.5 million last year.
Among the super-rich are a group called the ultra-rich, with assets over US$30 million. The growth of these ultra high net worth individuals grew 11.3%, outpacing that of high net worth individuals and suggesting a growing concentration of wealth. "The main reasons for the growth in the number of high net worth individuals was GDP growth, which was about 8.2% in Singapore last year, and the strong market capitalisation growth reflected in the stock market.
Also, Singapore's strong savings rate has helped in the creation of wealth," said Kong Eng Huat, MD of Merrill Lynch, International Bank. India and Indonesia follow closely behind Singapore in the list of countries with the fastest-growing number of millionaires.
The survey also pointed out a growing preference among wealthy investors to put money into the real estate market. While the high-end luxury sector in Singapore has been seeing strong demand, Merrill Lynch sees the bull run spilling over to the mass market segment over the next three years.
Mark Matthews, senior director and chief Asia Strategist at Merrill Lynch said: "More and more people are coming to work in Singapore, and as a result of that, people will move out of Districts, 9, 10, 11, into areas like Bukit Timah or East Coast, and prices are increasing in these neighbourhoods as well.There's not enough in the private residential sector to meet demand. I believe there are only less than 40,000 vacant condominiums left in Singapore now, and we're expecting over 100,000 people to move here this year."
Global assets held by wealthy investors rose 11.4 percent to $37.2 trillion in 2006, but the growth rate is forecast to slow to 6.8% annually over the next four years. Going forward, Merrill Lynch expects more central banks to tighten monetary policy, bringing a possible end to the period of high liquidity that has stimulated recent growth. Growth rates in Asia are expected to ease back as global demand slows.
Monday, June 25, 2007
Next Property Hot Spot : Bukit Timah
Source : The Straits Times
23 June, 2007
Bukit Timah - one of the leading lights in the last property boom - is fast making a comeback as property developers gear up for a slew of new launches there.
23 June, 2007
Bukit Timah - one of the leading lights in the last property boom - is fast making a comeback as property developers gear up for a slew of new launches there.
At least six residential projects will be launched there in the coming months, with prices reaching $1,900 per sq ft (psf) - a level not seen for the past 10 years.
Duchess Residences in Duchess Road, for instance, will have 120 units priced at between $1,600 and $1,900 psf when it is released for sale next month, said developer United Overseas Land.
At unit sizes ranging from 1,464 sq ft for three-bedroom homes to 4,101 sq ft for a penthouse, this means prices are likely to start from $2.4 million for a unit.
This launch is the clearest sign that the Bukit Timah area, which has stayed under the radar for the past few years, is on track for a strong recovery, say consultants.
The District 11 corridor, an established residential area dotted with prestigious schools, has long been a favourite with expatriates and families. But it has been outshone in the current boom by ultra-prime areas such as Orchard Road and Sentosa.
At the peak of the property upturn in 1996, two units at Shelford Apartments fetched a Bukit Timah high of about $2,100 psf.
But prices have since plummeted to below $1,000 psf. They started to pick up only in December, with the launch of Sixth Avenue Residences, which saw 90 per cent of its units snapped up over just one weekend.
‘We feel that prices of homes in the Bukit Timah area remain undervalued at an average of just under $1,000 psf,’ said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore. ‘In line with the increasing rental yield due to the recent rents hike, we see prices appreciating in the coming months.’
Developers are betting big on a recovery. Far East Organization, for one, has many eggs in the Bukit Timah basket that are due to hatch over the next year.
First up will be Jardin, located at Dunearn Road. It will have 90 lofts and 50 apartments, which market watchers expect to be priced at an average of $1,400 psf.
Far East also has a tie-up with Wing Tai to launch Floridian, a 336-unit condominium near Methodist Girls’ Primary School, tentatively by the end of the year.
It still has units available in completed projects such as Gardenvista, Hillview Regency and Meadowlodge.
‘We see a growing demand for completed projects in the Bukit Timah area,’ said Mr Chia Boon Kuah, Far East’s chief operating officer of property sales.
This is especially as Bukit Timah starts to attract home buyers flush with cash from collective sales, he added.
These buyers are not likely to lack options. Other projects include Allgreen Properties’ The Cascadia, due for release next month.
Market sources say the development’s 536 units will sell for about $1,200 to $1,300 psf on average - slightly above the recent high of $1,100 psf achieved by The Nexus next door.
Down the road, City Developments is planning to launch a project in Shelford Road in the third quarter. The project will have 77 units, ranging from two-bedroom units to penthouses.
At nearby Hillcrest Road, MCL Land has begun construction work on the former SingTel Academy site. About 160 cluster terrace houses are slated to come up on the 99-year leasehold plot, which is likely to be marketed in the second half.
Monday, June 18, 2007
Ardmore deal sets new land price benchmark
Source : The Business Times
June 18, 2007
SC Global clinches coveted site for $262m or $2,337 psf ppr
(SINGAPORE) A new record unit land price has been set for residential land in Singapore, toppling the benchmark established just last week. SC Global Developments has bought The Ardmore, with a 42,565-square-foot land area, for $262 million or $2,337 per sq foot (psf) of potential gross floor area including development charges.
This overtakes the $1,788 psf per plot ratio set for Char Yong Gardens in the Cairnhill location last week.
Both sites are freehold.
SC Global said yesterday that following the acquisition of The Ardmore, it will have a land bank of nearly one million sq ft of developable area on prime freehold land in the Orchard Road area. 'We have to date spent about $1 billion to acquire our prime land bank which carries an average land cost of just over $1,000 psf per plot ratio,' the group said yesterday.
Market watchers reckon that SC Global's breakeven cost for a new condo development on The Ardmore site could be around $3,000 psf. 'I guess they could be looking at selling the project at around $3,500 psf on an average basis, although with their brand name in the luxury sector, SC Global should be able to achieve even higher prices,' according to an analyst.
Simon Cheong, who is SC Global's chairman and CEO, said of The Ardmore: 'This freehold site is not only the last available site at Ardmore Park, it also has the distinctive characteristics we have been looking for to create our next premium signature development.'
Knight Frank, which brokered the sale of The Ardmore, said the tender for the collective sale drew six established property developers listed on the Singapore Exchange when it closed on June 12. 'The bids received were very close and were within a narrow price range,' it added.
The property is possibly the last plot with an Ardmore Park address available for redevelopment, it said. However, market watchers note that at least one major collective sale is brewing in the prestigious location - that of The Claymore.
The Ardmore's collective sale is subject to approval from the Strata Titles Board.
On average, owners of The Ardmore's existing 24 units will pocket nearly $11 million each, although BT understands the actual sum that owners will receive will vary widely, depending on the size of their units. There are three sizes of apartments in the development.
June 18, 2007
SC Global clinches coveted site for $262m or $2,337 psf ppr
(SINGAPORE) A new record unit land price has been set for residential land in Singapore, toppling the benchmark established just last week. SC Global Developments has bought The Ardmore, with a 42,565-square-foot land area, for $262 million or $2,337 per sq foot (psf) of potential gross floor area including development charges.
This overtakes the $1,788 psf per plot ratio set for Char Yong Gardens in the Cairnhill location last week.
Both sites are freehold.
SC Global said yesterday that following the acquisition of The Ardmore, it will have a land bank of nearly one million sq ft of developable area on prime freehold land in the Orchard Road area. 'We have to date spent about $1 billion to acquire our prime land bank which carries an average land cost of just over $1,000 psf per plot ratio,' the group said yesterday.
Market watchers reckon that SC Global's breakeven cost for a new condo development on The Ardmore site could be around $3,000 psf. 'I guess they could be looking at selling the project at around $3,500 psf on an average basis, although with their brand name in the luxury sector, SC Global should be able to achieve even higher prices,' according to an analyst.
Simon Cheong, who is SC Global's chairman and CEO, said of The Ardmore: 'This freehold site is not only the last available site at Ardmore Park, it also has the distinctive characteristics we have been looking for to create our next premium signature development.'
Knight Frank, which brokered the sale of The Ardmore, said the tender for the collective sale drew six established property developers listed on the Singapore Exchange when it closed on June 12. 'The bids received were very close and were within a narrow price range,' it added.
The property is possibly the last plot with an Ardmore Park address available for redevelopment, it said. However, market watchers note that at least one major collective sale is brewing in the prestigious location - that of The Claymore.
The Ardmore's collective sale is subject to approval from the Strata Titles Board.
On average, owners of The Ardmore's existing 24 units will pocket nearly $11 million each, although BT understands the actual sum that owners will receive will vary widely, depending on the size of their units. There are three sizes of apartments in the development.
Friday, June 15, 2007
More than 31,000 private homes to be completed in 2009 and 2010
Source : The Straits Times
June 15, 2007
More than 31,000 private homes to be completed in 2009 and 2010. This is more than 6 times the expected number this year; over 70% in central region
A FLOOD of more than 31,000 completed private homes will hit the market between 2009 and 2010 - more than six times the number expected to be completed this year. The dramatic increase in the amount of new property is likely to ease an escalating supply squeeze - and curb runaway rent increases -but relief is still a couple of years away.
Until 2009, the supply of new completed homes will be only comparatively modest, according to new government figures released yesterday. Just under 11,000 homes are expected to be finished between now and the end of 2008 - slightly less than the 11,147 new homes developers sold last year. This means the supply of completed properties will continue to lag behind demand until 2009, said property consultants.
They added that rents, already rising because of an influx of expatriates and the demolition of collective sale properties, will surge further. Rising private home rents - which have doubled over the past year in some cases - are already driving tenants to the more affordable public housing market and are starting to push up Housing Board rents. This has led property experts to dismiss concerns about an oversupply in 2009, even with the profusion of new completed homes then.
'The supply that is coming up is not alarming; it is reassuring,' said Mr Nicholas Mak, director of research and consultancy at Knight Frank. 'There's going to be a tight supply until 2008, so the new supply in 2009 will help restore a certain balance, a new equilibrium.' The new supply of completed homes should also help alleviate the spate of complaints from expatriates about recent rent increases, he added.
More than 70 per cent of these new homes will be in the central region, which includes Orchard, Marina, Bukit Timah, Queenstown, Bishan and Marine Parade. 'This could help restore some of the confidence in Singapore's competitiveness after all the talk about rising costs,' added Mr Mak.
Dr Chua also said the active collective sales market will mean that displaced home owners will soak up most of any excess home supply in the market anyway. But he admitted that the unusually large number of completed homes expected in 2009 may cause 'adjustments in the market'. 'The rate of increase in rents and prices may stabilise a bit before continuing to rise,' he said, adding that they are unlikely to drop at all because 'we are still in a growth cycle'. 'We shouldn't expect rents and prices to go down. It's just a matter of a slower rate of increase,' he said.
Another consultant, Mr Li Hiaw Ho of CB Richard Ellis Research,estimates that more than half of the new homes to be completed by 2010 could have already been sold. 'With the government's projection of a future population of 6.5 million, demand for new homes is expected to be taken up by newly-formed families, expatriates and foreign investors,' he said.
The deluge of new completions expected in 2009 and 2010 will largely be a result of the massive wave of collective sales that have occurred over the past two years. The large estate of Gillman Heights, for example, was sold en bloc recently with CapitaLand planning a development that will have double the number of existing units.
June 15, 2007
More than 31,000 private homes to be completed in 2009 and 2010. This is more than 6 times the expected number this year; over 70% in central region
A FLOOD of more than 31,000 completed private homes will hit the market between 2009 and 2010 - more than six times the number expected to be completed this year. The dramatic increase in the amount of new property is likely to ease an escalating supply squeeze - and curb runaway rent increases -but relief is still a couple of years away.
Until 2009, the supply of new completed homes will be only comparatively modest, according to new government figures released yesterday. Just under 11,000 homes are expected to be finished between now and the end of 2008 - slightly less than the 11,147 new homes developers sold last year. This means the supply of completed properties will continue to lag behind demand until 2009, said property consultants.
They added that rents, already rising because of an influx of expatriates and the demolition of collective sale properties, will surge further. Rising private home rents - which have doubled over the past year in some cases - are already driving tenants to the more affordable public housing market and are starting to push up Housing Board rents. This has led property experts to dismiss concerns about an oversupply in 2009, even with the profusion of new completed homes then.
'The supply that is coming up is not alarming; it is reassuring,' said Mr Nicholas Mak, director of research and consultancy at Knight Frank. 'There's going to be a tight supply until 2008, so the new supply in 2009 will help restore a certain balance, a new equilibrium.' The new supply of completed homes should also help alleviate the spate of complaints from expatriates about recent rent increases, he added.
More than 70 per cent of these new homes will be in the central region, which includes Orchard, Marina, Bukit Timah, Queenstown, Bishan and Marine Parade. 'This could help restore some of the confidence in Singapore's competitiveness after all the talk about rising costs,' added Mr Mak.
Dr Chua also said the active collective sales market will mean that displaced home owners will soak up most of any excess home supply in the market anyway. But he admitted that the unusually large number of completed homes expected in 2009 may cause 'adjustments in the market'. 'The rate of increase in rents and prices may stabilise a bit before continuing to rise,' he said, adding that they are unlikely to drop at all because 'we are still in a growth cycle'. 'We shouldn't expect rents and prices to go down. It's just a matter of a slower rate of increase,' he said.
Another consultant, Mr Li Hiaw Ho of CB Richard Ellis Research,estimates that more than half of the new homes to be completed by 2010 could have already been sold. 'With the government's projection of a future population of 6.5 million, demand for new homes is expected to be taken up by newly-formed families, expatriates and foreign investors,' he said.
The deluge of new completions expected in 2009 and 2010 will largely be a result of the massive wave of collective sales that have occurred over the past two years. The large estate of Gillman Heights, for example, was sold en bloc recently with CapitaLand planning a development that will have double the number of existing units.
Wednesday, June 13, 2007
Ho Bee/Choice Homes top bidder for site
Source : The Business Times
13 June 2007
Joint venture offers $524 psf ppr, a level not seen for such plot since '97
REFLECTING developers' confidence in the mid-tier residential sector, a joint venture between Ho Bee and NTUC Choice Homes yesterday cast the top bid of $524 psf per plot ratio for a 99-year leasehold condo plot at Dakota Crescent in the Mountbatten Road/Old Airport Road area fronting Geylang River.
The state tender attracted 15 bids, most of them at above $400 per square foot per plot ratio.
Market watchers recalled that the last time 99-year condo sites outside the prime districts and Sentosa Cove fetched such high price levels was in 1997. In that year, the plots that were subsequently developed into the Rafflesia condo in Bishan and Costa del Sol in the Bayshore area were sold at $403 psf per plot ratio and $457 psf ppr respectively, according to CB Richard Ellis data.
Ho Bee Investment executive director Ong Chong Hua estimates the break-even cost for a new condo on the Dakota Crescent site will be about $850 psf and that it could sell for about $1,000 to $1,100 psf on average. 'There's currently a shortage of such condos in this sort of price range,' he observed.
'The project will be pitched as a mid-market condo located in the city-fringe, Mountbatten/East Coast area. If you cannot afford the Sentosa Cove lifestyle, this is a very good alternative,' Mr Ong said.
Going by current market prices, Ho Bee/NTUC Choice Homes should not find it challenging to achieve their target selling prices. Wing Tai is said to have achieved an average price of $1,500-1,600 psf for its freehold condo near Kallang Riverside which it began selling in April and which is now fully sold.
Ho Bee's and NTUC Choice Homes' proposed condo at Dakota Crescent will be 18 to 20 storeys high and have about 370 apartments comprising two, three and four-bedders. The project is slated for launch by mid-2008.
'This is not a traditional upgrader's market if you look at the site's attributes - it fronts the Geylang River, is across the low-rise Goodman Road area and just about 100 metres from the Dakota MRT Station which will be linked by the Circle Line to Suntec City,' Mr Ong said.
'The site is also near the future Sports Hub and is easily connected to Nicholl Highway, PIE and ECP.'
The top bid by Ho Bee/NTUC Choice Homes of $228.89 million or $524 psf ppr was just 3 per cent higher than the second highest offer of $508 psf ppr, which came from IOI Land unit Multi Wealth (Singapore). GuocoLand was in third position, with $475 psf ppr.
CapitaLand teamed up with US-based Wachovia Development Corporation to cast a $466 psf ppr bid. Other contenders included Frasers Centrepoint ($451 psf ppr), Allgreen Properties & Hoe Seng Company ($430 psf ppr), City Developments, Sim Lian Land and Keppel Land. Wing Tai placed a joint bid with United Engineers unit Greatearth Developments.
13 June 2007
Joint venture offers $524 psf ppr, a level not seen for such plot since '97
REFLECTING developers' confidence in the mid-tier residential sector, a joint venture between Ho Bee and NTUC Choice Homes yesterday cast the top bid of $524 psf per plot ratio for a 99-year leasehold condo plot at Dakota Crescent in the Mountbatten Road/Old Airport Road area fronting Geylang River.
The state tender attracted 15 bids, most of them at above $400 per square foot per plot ratio.
Market watchers recalled that the last time 99-year condo sites outside the prime districts and Sentosa Cove fetched such high price levels was in 1997. In that year, the plots that were subsequently developed into the Rafflesia condo in Bishan and Costa del Sol in the Bayshore area were sold at $403 psf per plot ratio and $457 psf ppr respectively, according to CB Richard Ellis data.
Ho Bee Investment executive director Ong Chong Hua estimates the break-even cost for a new condo on the Dakota Crescent site will be about $850 psf and that it could sell for about $1,000 to $1,100 psf on average. 'There's currently a shortage of such condos in this sort of price range,' he observed.
'The project will be pitched as a mid-market condo located in the city-fringe, Mountbatten/East Coast area. If you cannot afford the Sentosa Cove lifestyle, this is a very good alternative,' Mr Ong said.
Going by current market prices, Ho Bee/NTUC Choice Homes should not find it challenging to achieve their target selling prices. Wing Tai is said to have achieved an average price of $1,500-1,600 psf for its freehold condo near Kallang Riverside which it began selling in April and which is now fully sold.
Ho Bee's and NTUC Choice Homes' proposed condo at Dakota Crescent will be 18 to 20 storeys high and have about 370 apartments comprising two, three and four-bedders. The project is slated for launch by mid-2008.
'This is not a traditional upgrader's market if you look at the site's attributes - it fronts the Geylang River, is across the low-rise Goodman Road area and just about 100 metres from the Dakota MRT Station which will be linked by the Circle Line to Suntec City,' Mr Ong said.
'The site is also near the future Sports Hub and is easily connected to Nicholl Highway, PIE and ECP.'
The top bid by Ho Bee/NTUC Choice Homes of $228.89 million or $524 psf ppr was just 3 per cent higher than the second highest offer of $508 psf ppr, which came from IOI Land unit Multi Wealth (Singapore). GuocoLand was in third position, with $475 psf ppr.
CapitaLand teamed up with US-based Wachovia Development Corporation to cast a $466 psf ppr bid. Other contenders included Frasers Centrepoint ($451 psf ppr), Allgreen Properties & Hoe Seng Company ($430 psf ppr), City Developments, Sim Lian Land and Keppel Land. Wing Tai placed a joint bid with United Engineers unit Greatearth Developments.
Foreign buying of residential land soars
Source : The Business Times
13 June 2007
Foreign investors have pumped $885.5 million into residential land purchases here so far this year, outstripping the $651.84 million for the whole of last year.
And CapitaLand said yesterday that it hopes to redevelop the $420 million Char Yong Gardens with US-based Wachovia Development Corporation, so the sum invested by foreigners is set to increase further.
According to an analysis of data by CB Richard Ellis (CBRE), purchases by foreign investors so far in 2007 amount to 11.4 per cent of a total of $7.13 billion, excluding Char Yong Gardens.
For the whole of 2006, they accounted for 7.12 per cent of a total of $8.17 billion.
Significant acquisitions with foreign investment include Horizon Towers by Hotel Properties Ltd (HPL) and Horizon Investments, an entity owned by funds managed by Morgan Stanley Real Estate and Qatar Investment Authority, the investment arm of the Emirate of Qatar. Two unnamed private funds, with HPL, also bought into CapitaLand's Gillman Heights site.
On the marked increase in foreign investment, CBRE's Jeremy Lake said: 'The Singapore residential growth story has spread further afield. What was a secret 18 months ago is no longer a secret.'
On tie-ups with foreigners, Patricia Chia, chief executive of CapitaLand Residential Singapore, said: 'Partners come along with us because they share our vision on the Singapore residential market and the sites that we have. More often than not, they do not have development and execution capabilities, but have real estate knowledge globally.
One of the consequences of so much global capital is that it could raise price expectations for prime collective sale sites.
CBRE's analysis of data also shows that although the number of transactions overall is increasing, the number in prime districts appears to be dropping. In 2006, 30 of 76 collective sale deals were in District 9 alone, representing 39 per cent of all transactions.
This percentage has now dropped to 16 per cent or 10 out of 62 transactions done year to date.
The percentage of transactions in the prime districts of 9, 10 and 11 combined has also dropped, from 68 per cent for the whole of 2006 to 47 per cent year to date.
Prices, availability and location combine to make a site attractive. But as Mr Lake puts it: 'Developers won't buy a site if they don't think they can make money on it. You only have to look at the sites that have been launched but not sold.'
The shift to non-prime districts is not necessarily a bad thing. As Mr Lake notes, it suggests that the recovery, supported by demand, has spread beyond traditional high-end areas.
In 2006, districts 5, 12, 19, 21 and 27 combined made up only 13 per cent of the collective sales pie. For the first five months of 2007, district 19 (Serangoon) alone made up 10 per cent. Other districts highlighted by CBRE include the combined districts 15 and 16 (19 per cent) and districts 2,4,5 and 8 (13 per cent).
Mr Lake believes one possible outcome of a more even spread of transactions across all districts is that the gap between prices for different districts could shrink.
Currently the gap can be extremely wide, even if the sites are just minutes apart. CBRE, for instance, is marketing Grangeford Apartments for $2,000 per sq ft per plot ratio and Alexandra Centre for around $300 psf ppr.
City Developments is one outfit that believes in paying the right price for the right property at the right time. 'We have consistently maintained a valuable land bank which includes a fine range of sites in all parts of Singapore,' said group general manager Chia Ngiang Hong.
'With this strategy, CDL has the advantage of creating more value by being able to respond quickly to the market and selectively launch the most appropriate project at any given time so as to best maximise its investment returns.'
CDL's most recent acquisition was Thomson Mansions in the Thomson/Balestier area.
Developers will now have to look harder. Lippo Realty executive director Thio Gim Hock said: 'I believe en bloc asking prices are getting quite high. However, Lippo is always on the lookout for opportunities both in prime and other areas.'
13 June 2007
Foreign investors have pumped $885.5 million into residential land purchases here so far this year, outstripping the $651.84 million for the whole of last year.
And CapitaLand said yesterday that it hopes to redevelop the $420 million Char Yong Gardens with US-based Wachovia Development Corporation, so the sum invested by foreigners is set to increase further.
According to an analysis of data by CB Richard Ellis (CBRE), purchases by foreign investors so far in 2007 amount to 11.4 per cent of a total of $7.13 billion, excluding Char Yong Gardens.
For the whole of 2006, they accounted for 7.12 per cent of a total of $8.17 billion.
Significant acquisitions with foreign investment include Horizon Towers by Hotel Properties Ltd (HPL) and Horizon Investments, an entity owned by funds managed by Morgan Stanley Real Estate and Qatar Investment Authority, the investment arm of the Emirate of Qatar. Two unnamed private funds, with HPL, also bought into CapitaLand's Gillman Heights site.
On the marked increase in foreign investment, CBRE's Jeremy Lake said: 'The Singapore residential growth story has spread further afield. What was a secret 18 months ago is no longer a secret.'
On tie-ups with foreigners, Patricia Chia, chief executive of CapitaLand Residential Singapore, said: 'Partners come along with us because they share our vision on the Singapore residential market and the sites that we have. More often than not, they do not have development and execution capabilities, but have real estate knowledge globally.
One of the consequences of so much global capital is that it could raise price expectations for prime collective sale sites.
CBRE's analysis of data also shows that although the number of transactions overall is increasing, the number in prime districts appears to be dropping. In 2006, 30 of 76 collective sale deals were in District 9 alone, representing 39 per cent of all transactions.
This percentage has now dropped to 16 per cent or 10 out of 62 transactions done year to date.
The percentage of transactions in the prime districts of 9, 10 and 11 combined has also dropped, from 68 per cent for the whole of 2006 to 47 per cent year to date.
Prices, availability and location combine to make a site attractive. But as Mr Lake puts it: 'Developers won't buy a site if they don't think they can make money on it. You only have to look at the sites that have been launched but not sold.'
The shift to non-prime districts is not necessarily a bad thing. As Mr Lake notes, it suggests that the recovery, supported by demand, has spread beyond traditional high-end areas.
In 2006, districts 5, 12, 19, 21 and 27 combined made up only 13 per cent of the collective sales pie. For the first five months of 2007, district 19 (Serangoon) alone made up 10 per cent. Other districts highlighted by CBRE include the combined districts 15 and 16 (19 per cent) and districts 2,4,5 and 8 (13 per cent).
Mr Lake believes one possible outcome of a more even spread of transactions across all districts is that the gap between prices for different districts could shrink.
Currently the gap can be extremely wide, even if the sites are just minutes apart. CBRE, for instance, is marketing Grangeford Apartments for $2,000 per sq ft per plot ratio and Alexandra Centre for around $300 psf ppr.
City Developments is one outfit that believes in paying the right price for the right property at the right time. 'We have consistently maintained a valuable land bank which includes a fine range of sites in all parts of Singapore,' said group general manager Chia Ngiang Hong.
'With this strategy, CDL has the advantage of creating more value by being able to respond quickly to the market and selectively launch the most appropriate project at any given time so as to best maximise its investment returns.'
CDL's most recent acquisition was Thomson Mansions in the Thomson/Balestier area.
Developers will now have to look harder. Lippo Realty executive director Thio Gim Hock said: 'I believe en bloc asking prices are getting quite high. However, Lippo is always on the lookout for opportunities both in prime and other areas.'
Char Yong Gdns sold for record $1,788 psf ppr
Source : The Business Times
13 June 2007
CapitaLand signs sale and purchase agreement for $420 million
(SINGAPORE) Setting a new benchmark price for residential land in Singapore, CapitaLand has bought Char Yong Gardens at the corner of Cairnhill and Hullet roads at a unit land price of $1,788 psf of potential gross floor area inclusive of development charges payable to the state.
The 93,274 sq ft freehold site is next to the Silver Towers plot which CapitaLand bought in September last year for $1,107 psf per plot ratio (psf ppr). The average land cost of the two sites works out to about $1,400 psf ppr. It remains to be seen if CapitaLand will amalgamate the two plots for a single project.
Prior to yesterday's deal, the record price for residential land was $1,735 psf ppr set by the sale of The Parisian at Angullia Park in December last year to Overseas Union Enterprise.
CapitaLand said yesterday it has signed a sale and purchase agreement to acquire Char Yong Gardens through a collective sale for $420 million. The unit land price of $1,788 psf ppr is inclusive of a $47 million development charge.
Market watchers reckoned CapitaLand's break-even cost for a new condo on the site could be around $2,200 to $2,300 psf.
Char Yong's unit land price is 16 per cent higher than the $1,542 psf ppr that Sing Holdings paid in March this year for the nearby Hillcourt Apartments.
Jones Lang LaSalle brokered the collective sale of Char Yong Gardens.
The sale to CapitaLand was agreed following the lapse of an earlier offer made in late April by a joint venture involving China, Indonesia and Singapore entities. But that offer is believed to have had a series of conditions.
CapitaLand's acquisition of Char Yong Gardens is subject to approval from the Strata Titles Board. Consent from owners controlling at least 80 per cent of share values at Char Yong Gardens has been obtained, JLL regional director and head of investments Lui Seng Fatt confirmed yesterday.
CapitaLand said yesterday it is in talks with Wachovia Development Corporation to develop the Char Yong site through a 50:50 joint venture. The company is a wholly owned subsidiary of Wachovia Corporation, one of the biggest diversified financial services groups in the US, through which certain real estate activities are transacted.
For now, the plan is to redevelop the Char Yong plot into a 20-storey condo with about 130 biggish apartments. The project is slated for launch in end-2008.
CapitaLand said that since 2005, it has bought four residential sites and one mixed development plot in Singapore. These include Gillman Heights, for which it has partnered Hotel Properties and two funds. 'The company will continue to seize opportunities to acquire prime sites to augment its existing landbank,' it said.
13 June 2007
CapitaLand signs sale and purchase agreement for $420 million
(SINGAPORE) Setting a new benchmark price for residential land in Singapore, CapitaLand has bought Char Yong Gardens at the corner of Cairnhill and Hullet roads at a unit land price of $1,788 psf of potential gross floor area inclusive of development charges payable to the state.
The 93,274 sq ft freehold site is next to the Silver Towers plot which CapitaLand bought in September last year for $1,107 psf per plot ratio (psf ppr). The average land cost of the two sites works out to about $1,400 psf ppr. It remains to be seen if CapitaLand will amalgamate the two plots for a single project.
Prior to yesterday's deal, the record price for residential land was $1,735 psf ppr set by the sale of The Parisian at Angullia Park in December last year to Overseas Union Enterprise.
CapitaLand said yesterday it has signed a sale and purchase agreement to acquire Char Yong Gardens through a collective sale for $420 million. The unit land price of $1,788 psf ppr is inclusive of a $47 million development charge.
Market watchers reckoned CapitaLand's break-even cost for a new condo on the site could be around $2,200 to $2,300 psf.
Char Yong's unit land price is 16 per cent higher than the $1,542 psf ppr that Sing Holdings paid in March this year for the nearby Hillcourt Apartments.
Jones Lang LaSalle brokered the collective sale of Char Yong Gardens.
The sale to CapitaLand was agreed following the lapse of an earlier offer made in late April by a joint venture involving China, Indonesia and Singapore entities. But that offer is believed to have had a series of conditions.
CapitaLand's acquisition of Char Yong Gardens is subject to approval from the Strata Titles Board. Consent from owners controlling at least 80 per cent of share values at Char Yong Gardens has been obtained, JLL regional director and head of investments Lui Seng Fatt confirmed yesterday.
CapitaLand said yesterday it is in talks with Wachovia Development Corporation to develop the Char Yong site through a 50:50 joint venture. The company is a wholly owned subsidiary of Wachovia Corporation, one of the biggest diversified financial services groups in the US, through which certain real estate activities are transacted.
For now, the plan is to redevelop the Char Yong plot into a 20-storey condo with about 130 biggish apartments. The project is slated for launch in end-2008.
CapitaLand said that since 2005, it has bought four residential sites and one mixed development plot in Singapore. These include Gillman Heights, for which it has partnered Hotel Properties and two funds. 'The company will continue to seize opportunities to acquire prime sites to augment its existing landbank,' it said.
Helios Residences at Cairnhill Circle
The upcoming freehold development by Wing Tai (with a maximum height of 20-storey and approximately 140 units) is strategically sited along Cairnhill Circle, next to The Light at Cairnhill - another Wing Tai's luxurious development. It is just a mere five-minute walk away from Orchard Road - Singapore's main shopping and entertainment belt where residents can shop to their heart's content at major shopping centres such as Ngee Ann City, The Paragon and Wisma Atria. They can enjoy afternoon tea with friends at the many alfresco cafes or at 5-star hotels such as Hilton Hotel, Marriott Hotel and Goodwood Park Hotel located along Orchard Road. Residents can also choose to relax or have business meetings at exclusive clubs such as the Tanglin Club and American Club that are situated nearby. Well-known hospital such as Mount Elizabeth Hospital can be found within the vicinity while excellent schools such as Singapore Chinese Girls' School, Anglo-Chinese School and Raffles' Girls' Secondary School are just a short drive away.
Residents of this prime development not only enjoy the privilege of a prestigious address but also the convenience of nearby amenities and facilities as well as the tranquility and privacy of an esteemed residence.
As the development is situated just seconds away from the Central Expressway that conveniently links to other major expressways, residents will find traveling to all parts of Singapore including Changi Airport and Raffles Place a total breeze. Public transports, such as MRT and bus, are also readily available within walking distance.
Address : 15/17 Cairnhill Circle
Tenure : Freehold
TOP : Estimated to be after 2.5 - 3 years from June 2007
Total Units : 140
Site Area : 79,679 sq ft
Facilities : 30m Sky Pool (with infinity edge), Sauna, Children's Pool, Jacuzzi, Gymasium, Tennis Courts, BBQ Pits.
Developer : Wing Tai Holdings Limited Singapore
Type of units available :
2 bedroom (1250 sq ft - 1350 sq ft)
3 bedroom (1650 sq ft - 1950 sq ft)
4 bedroom (more than 2000 sq ft)
Penthouse (more than 4000 sq ft)
Estimated Price : $3300 psf up.
To pre-book your preferred unit at Helios Residences, please contact Camilia Ng @ 9763-9937 or email to camiliang@gmail.com.
Saturday, June 9, 2007
Fontaine Parry at Poh Huat Road
An exciting new developement by OUB Centre Limited will spring where Parry Gardens previously stand.
Fontaine Parry is an abode set in a serene and tranquil residential estate amidst a community consisting of mainly landed housing and low-rise developments.
Soon you can live within 1 km of Rosyth School, choice cuisines, countless amentities, naturescapes and swift access to the Central Expressway (CTE) and the future Kallang Expressway.
Everything you have ever dreamed and wished of a perfect home is about to come true.
Address : 67, 69, 73, 75, 77, 79 81 Poh Huat Road
Tenure : 999 yrs
Site Area : 105,466 sq ft
TOP : 3 years from 2007
Total Units : 125
Developer : Grensburg Investment Pte Ltd (OUB Centre Limited)
Architect : ADDP Architects Pte Ltd
Facilities : Swimming pools, Gymnasium, Multi-purpose Hall, Jacuzzi, Sauna, BBQ Pits, Jogging Track, Exercise Stations
Type of Units :
2 Bedroom (850 - 915 sq ft)
2 Bedroom + PES (1001 - 1270 sq ft)
2 Bedroom + RT (1744 sq ft)
3 Bedroom (1184 - 1292 sq ft)
3 Bedroom + PES (1302 - 1615 sq ft)
3 Bedroom + RT (2303 - 2390 sq ft)
3 Bedroom + Attic (1496 sq ft)
4 Bedroom + Attic (1991 - 2121 sq ft)
Site Plan :
To register your interest in Fontaine Parry or to request for a Fontaine Parry's brochure (site plan, floor plan, elevation chart) , please contact Camilia Ng @ 9763-9937 or email to camiliang@gmail.com. Pre-booking starts today!
Friday, June 8, 2007
Foreign purchases of subsale units hit 11-yr high
Source : The Business Times
7 June 2007
Indons lead buyers, followed by M'sians, Aussies, Brits and Indians
FOREIGNERS bought 241 private apartments and condos in the subsale market during the first quarter of this year, up 35 per cent from the preceding three months and the highest figure since 1996, according to DTZ Debenham Tie Leung's analysis of caveats captured by Urban Redevelopment Authority's Realis system.
The 241 subsale condos/apartments foreigners purchased in Q1 2007 gave them a nearly 36 per cent share of the total of 673 non-landed private homes purchased in the subsale market during the quarter. This is a much higher share compared with foreigners' overall 27 per cent share of total private home purchases in the same period.
DTZ in its report suggests the increasing foreign subsale interest may mean that foreigners are turning to the subsale market to buy homes because they may have less access to high-profile launches in the primary market. 'However, of greater significance is the fact that it also reflects their confidence about the investment potential of quality projects in Singapore,' the study added.
Subsales, often seen as a gauge of speculative activity, refers to secondary market deals - properties not bought directly from developers - in projects yet to receive Certificate of Statutory Completion.
The Sail @ Marina Bay and Icon were among the projects that attracted relatively strong foreign buying in the subsale market in Q1. Foreign buyers accounted for 36 per cent, or 24 of the total 67 units at The Sail transacted in the subsale market in Q1 2007. Foreign purchasers also made up 25 per cent, or 18 of the 72 Icon units purchased in the subsale market. Other projects favoured by foreign buyers in the subsale market during the quarter included Sky @ Eleven in Thomson, The Cosmopolitan at River Valley/Kim Seng roads, Twin Regency at Kim Tian Road and Watermark at Robertson Quay.
DTZ observed that foreigners also upped their subsale purchases for high-end apartments/condos in the first three months.
At 26 per cent, Indonesians accounted for the lion's share of foreign buyers of subsale apartments/condos, followed by Malaysians (21 per cent share) Australians (10 per cent), United Kingdom nationals (8 per cent), Indians (7 per cent), Koreans (5 per cent) and US citizens and mainland Chinese (with 3 per cent share each).
Historically, the highest levels of foreign buying of subsale condos/apartments were recorded in Q4 1995 (485 subsales), Q1 1996 (329 subsales) and Q3 1996 (321 subsales).
The total 673 subsale apartments/condo deals (involving buyers of various nationalities including Singaporeans) in the first quarter was 18 per cent higher than the preceding quarter and just over six times the 111 subsale deals done in Q1 2006.
The latest subsale figure was 8 per cent shy of the previous high recorded in Q2 1999, when 735 non-landed private homes changed hands in the subsale market. The highest figure ever reported was 1,653 in Q2 1996, at the peak of speculative fever in the mid-nineties. The 673 caveats lodged for subsale apartment/condo deals in the first quarter made up 11 per cent of total caveats lodged for non-landed private homes (comprising both primary and secondary market transactions) during the period. During the first three quarters in 1995, subsales made up 30 per cent or more of deals.
The median subsale price fell 2 per cent quarter-on-quarter to $1,005 psf in Q1 this year. However, it was still 65 per cent higher than the $609 psf posted in Q1 last year.
DTZ's report also said the momentum in the subsale market is expected to keep up, particularly for high-profile projects, with likely support from foreigners increasingly positive about the potential of the Singapore residential property market. 'However, the subsale market is expected to be increasingly competitive as choices increase,' the firm added.
7 June 2007
Indons lead buyers, followed by M'sians, Aussies, Brits and Indians
FOREIGNERS bought 241 private apartments and condos in the subsale market during the first quarter of this year, up 35 per cent from the preceding three months and the highest figure since 1996, according to DTZ Debenham Tie Leung's analysis of caveats captured by Urban Redevelopment Authority's Realis system.
The 241 subsale condos/apartments foreigners purchased in Q1 2007 gave them a nearly 36 per cent share of the total of 673 non-landed private homes purchased in the subsale market during the quarter. This is a much higher share compared with foreigners' overall 27 per cent share of total private home purchases in the same period.
DTZ in its report suggests the increasing foreign subsale interest may mean that foreigners are turning to the subsale market to buy homes because they may have less access to high-profile launches in the primary market. 'However, of greater significance is the fact that it also reflects their confidence about the investment potential of quality projects in Singapore,' the study added.
Subsales, often seen as a gauge of speculative activity, refers to secondary market deals - properties not bought directly from developers - in projects yet to receive Certificate of Statutory Completion.
The Sail @ Marina Bay and Icon were among the projects that attracted relatively strong foreign buying in the subsale market in Q1. Foreign buyers accounted for 36 per cent, or 24 of the total 67 units at The Sail transacted in the subsale market in Q1 2007. Foreign purchasers also made up 25 per cent, or 18 of the 72 Icon units purchased in the subsale market. Other projects favoured by foreign buyers in the subsale market during the quarter included Sky @ Eleven in Thomson, The Cosmopolitan at River Valley/Kim Seng roads, Twin Regency at Kim Tian Road and Watermark at Robertson Quay.
DTZ observed that foreigners also upped their subsale purchases for high-end apartments/condos in the first three months.
At 26 per cent, Indonesians accounted for the lion's share of foreign buyers of subsale apartments/condos, followed by Malaysians (21 per cent share) Australians (10 per cent), United Kingdom nationals (8 per cent), Indians (7 per cent), Koreans (5 per cent) and US citizens and mainland Chinese (with 3 per cent share each).
Historically, the highest levels of foreign buying of subsale condos/apartments were recorded in Q4 1995 (485 subsales), Q1 1996 (329 subsales) and Q3 1996 (321 subsales).
The total 673 subsale apartments/condo deals (involving buyers of various nationalities including Singaporeans) in the first quarter was 18 per cent higher than the preceding quarter and just over six times the 111 subsale deals done in Q1 2006.
The latest subsale figure was 8 per cent shy of the previous high recorded in Q2 1999, when 735 non-landed private homes changed hands in the subsale market. The highest figure ever reported was 1,653 in Q2 1996, at the peak of speculative fever in the mid-nineties. The 673 caveats lodged for subsale apartment/condo deals in the first quarter made up 11 per cent of total caveats lodged for non-landed private homes (comprising both primary and secondary market transactions) during the period. During the first three quarters in 1995, subsales made up 30 per cent or more of deals.
The median subsale price fell 2 per cent quarter-on-quarter to $1,005 psf in Q1 this year. However, it was still 65 per cent higher than the $609 psf posted in Q1 last year.
DTZ's report also said the momentum in the subsale market is expected to keep up, particularly for high-profile projects, with likely support from foreigners increasingly positive about the potential of the Singapore residential property market. 'However, the subsale market is expected to be increasingly competitive as choices increase,' the firm added.
Citigroup sees rise in home prices
Source : The Business Times
7 June 2007
CITIGROUP Investment Research expects prices of private homes to climb 20-25 per cent this year - substantially more than the 12-15 per cent increase the bank predicted just a couple of months ago in April.
Private home prices are expected to rise 20-25% this year as demand outpaces supply. Home prices rose 10.2 per cent last year.
This year, rents as well as prices are likely to continue to surge as the supply of rental property dwindles, Citigroup said in a research note yesterday.
Net negative supply in the first quarter - about 880 units were demolished but only 716 units were completed - coupled with strong demand of 2,225 units pushed the occupancy rate to a record 94.9 per cent, the note said.
Property analyst Wendy Koh believes strong demand was due to strong employment, drawing foreign workers here. As many as 48,000 jobs were created in the first three months of 2007. Citigroup expects the residential occupancy rate to rise to new records of 96.6 per cent and 97.2 per cent by end-2007 and 2008 as supply continues to tighten.
Only 4,573 units are scheduled for completion from April to December 2007, Citigroup estimates. In 2006, about 3,500 units were affected by en bloc sales. Assuming 2,700 units are demolished from April to December, the net increase in supply for 2007 is likely to be just 1,700 - versus demand of 8,000.
Ms Koh also believes fewer units will be ready in 2008 and 2009 than the Urban Redevelopment Authority's estimates of 6,600 and 10,600, as not all units are under construction yet. This will support a further rise in occupancy rates to above 97 per cent in 2008, she said.
Ms Koh also said as rents continue to outpace price rises, rental yields in the broader market - particularly the mass market, where price rises have lagged - will continue to rise. The current gross rental yield for mass market properties now averages 5.3 per cent, versus 5 per cent six months ago and 4.5 per cent a year ago.
'Such yield improvement will start to attract some investors into the mass market segment, especially given that rents are likely to continue to surge as the occupancy rate continues to reach a record high,' she said. Positive sentiment and strong affordability among first-time buyers is also likely to drive prices sharply higher in this segment, she predicts.
The report has 'buy' calls on Allgreen Properties, City Developments and Keppel Land and a 'sell' call on CapitaLand.
7 June 2007
CITIGROUP Investment Research expects prices of private homes to climb 20-25 per cent this year - substantially more than the 12-15 per cent increase the bank predicted just a couple of months ago in April.
Private home prices are expected to rise 20-25% this year as demand outpaces supply. Home prices rose 10.2 per cent last year.
This year, rents as well as prices are likely to continue to surge as the supply of rental property dwindles, Citigroup said in a research note yesterday.
Net negative supply in the first quarter - about 880 units were demolished but only 716 units were completed - coupled with strong demand of 2,225 units pushed the occupancy rate to a record 94.9 per cent, the note said.
Property analyst Wendy Koh believes strong demand was due to strong employment, drawing foreign workers here. As many as 48,000 jobs were created in the first three months of 2007. Citigroup expects the residential occupancy rate to rise to new records of 96.6 per cent and 97.2 per cent by end-2007 and 2008 as supply continues to tighten.
Only 4,573 units are scheduled for completion from April to December 2007, Citigroup estimates. In 2006, about 3,500 units were affected by en bloc sales. Assuming 2,700 units are demolished from April to December, the net increase in supply for 2007 is likely to be just 1,700 - versus demand of 8,000.
Ms Koh also believes fewer units will be ready in 2008 and 2009 than the Urban Redevelopment Authority's estimates of 6,600 and 10,600, as not all units are under construction yet. This will support a further rise in occupancy rates to above 97 per cent in 2008, she said.
Ms Koh also said as rents continue to outpace price rises, rental yields in the broader market - particularly the mass market, where price rises have lagged - will continue to rise. The current gross rental yield for mass market properties now averages 5.3 per cent, versus 5 per cent six months ago and 4.5 per cent a year ago.
'Such yield improvement will start to attract some investors into the mass market segment, especially given that rents are likely to continue to surge as the occupancy rate continues to reach a record high,' she said. Positive sentiment and strong affordability among first-time buyers is also likely to drive prices sharply higher in this segment, she predicts.
The report has 'buy' calls on Allgreen Properties, City Developments and Keppel Land and a 'sell' call on CapitaLand.
Celebs cash in on their hot property
Source : The New Paper
4 June 2007
THE local property market is sizzling hot right now.
En-bloc sales are the talk of town, luxury developments are snapped up almost instantly, and property prices are at an all-time high.
The Singapore Press Holdings' classified sections have seen a surge of more than 20 per cent in advertisements for apartments in the prime districts of 9, 10 and 11.
So it's no wonder that some savvy celebrities have jumped on the bandwagon to benefit from the property market.
While not all of them had profit on their minds, celebrities like Chen Hanwei, Bryan Wong, Quan Yifeng and David Gan made profits by moving out this year.
Not to mention singer Sun Ho, who stands to make about $1 million if the collective sale for her condo, Horizon Towers in Leonie Hill, passes through.
In particular, The Glacier, a condominium development in Joo Chiat which was dubbed Kampong Glam for its unusual number of celebrity residents, suffered mass exodus when the celebs moved out.
The condo used to boast of residents like Bryan, Yifeng, Lynn and Darren Seah.
Hanwei added to the estate's star quotient when he moved in last December.
Bryan was the first to leave. He moved out of his 130 sq m apartment in April.
According to Lianhe Zaobao, Bryan downgraded to a three-bedroom HDB flat in a bid to seek a 'simpler life'.
Other reports said he had gleaned some financial tips after hosting the Dollars and Sense gameshow, and had sold off his three-year-old apartment to cash in on the property boom.
Bryan is currently overseas and could not speak to The New Paper on Sunday.
His move was closely followed by Hanwei, who moved out of his penthouse unit after a mere four months.
He had bought his 214 sq m three-bedroom unit for close to $1m last year, but sold it off in April.
A quick check with the Urban Redevelopment Authority website showed that his unit probably sold for nearly $1.25m. Which means that Hanwei would have made a neat profit of at least $200,000 within four months.
Yet Hanwei claimed that his reasons for moving out were personal and not financial.
'My mom and two young nephews come to stay over very often. The apartment had a lot of glass fixtures in the balcony, rooms and toilet.
'I decided to get a new place that would be safer for my nephews, who are 8 and six-months-old.'
Hanwei also insisted that he didn't make much profit from the sale of his Joo Chiat apartment after taking away the cost of renovations ($30,000) and furniture.
Before buying the Joo Chiat condo, Hanwei used to live in rented apartments at Newton and Serangoon Gardens.
He said: 'I fell in love with it when I first saw it. It was the first home I owned and lived in.'
He is currently renting a one-bedroom apartment in Siglap for a little over $2,000 a month, and has no intentions of buying another home.
'I'll be renting until the property market cools down before I start looking at buying again,' he said.
So doesn't this make him quite a property guru in the making?
After all, Hanwei also sold off his 60sq m loft at the The Icon in Tanjong Pagar before its completion two years ago for a profit.
He had bought the apartment two years ago at around '$400,000 to $500,000' and claims he made only about '$20,000 to $30,000' when he sold it off at the end of 2005.
'The property market was soft at that time,' said Hanwei.
And according to a report that year, a 57 sq m unit at The Icon was going for about $390,000.
Hanwei said he sold off his loft because he had just bought a piano, and there was 'no space in that small loft to put it'.
And it was sheer luck that both his properties sold for a profit.
'I just bought it because I liked it. I don't know how to make investments in the property industry.'
Despite Hanwei's denials about his investment acumen, it was through him that neighbour and colleague Yifeng sold off her own unit and found a new home.
Like Bryan, Yifeng was looking to downgrade.
Yifeng told Shin Min Daily News that Hanwei put her in touch with another actor, Jeffrey Wang Yuqing, whose friend later bought Yifeng's unit.
On the sale, Yifeng said: 'Well, there was money to be made. Now that the prices of private property are rising, of course you should sell now. Why wait?'
She also told Lianhe Zaobao that it was a prudent move as husband Peter Yu had just started out as a property agent.
Yifeng had bought her four-bedroom 123 sq m apartment for around $750,000 three years ago, and sold it off for about $800,000.
When asked about her profit, Yifeng reportedly replied: 'It's enough to pay for three years' rental, and I will still have a five-figure sum left over.'
Even then, she joked that she didn't make as much profit as Bryan and Hanwei because 'unlike them, I could not boast of my condo being a celebrity condo anymore, since they had already
moved out'.
It is not clear when the estate's two other celebrity residents Lynn and Darren, moved out.
Yifeng is now in the midst of moving to a smaller rented apartment in the east.
Her new place is three quarters the size of her old apartment. The monthly rental is $2,500.
Asked if she felt sad about downgrading, Yifeng said: 'There is no stability in showbiz. The risks are big, so why pressure yourself with the burden of a home mortgage?'
All this moving and selling is tempting actor Vincent Ng, who lives nearby in Marine Parade.
The 32-year-old said that he is currently 'researching' the property market, as he hopes to sell his condo unit for a profit, and downgrade to a flat or rented property.
Actor Christopher Lee also apparently sold off his 900 sq ft apartment at Newton 18 some time after Chinese New Year this year.
He had bought the apartment for around $1m in 2003.
It was reported at that time that Fann Wong also bought a unit in the same condo as an investment.
At the time, Christopher had told Shin Min Daily News: 'This is a home I have purchased, and if I get married, it will be here...'
Unfortunately, that doesn't seem to be the case now.
According to Lianhe Wanbao, Christopher has not returned often to his Newton apartment after he was arrested for drink driving last October.
The 36-year-old actor is currently serving a four-week jail term for his offence.
It was not known why he sold the apartment. According to URA records, a unit of the same size in Newton sold for around $1.1m in February.
Which means Christopher probably didn't profit as much as the others.
Another star who didn't profit from selling is celebrity coiffeur David Gan.
He recently moved from his Paterson Edge apartment into a posh three-bedroom pad in The Boulevard Residence (BLVD) off Orchard Road, which has Fann as a resident.
He reportedly paid $5m for the apartment - nearly double what he received for his 120 sq m Paterson Edge sale.
The 44-year-old has been offered $6.5m for his new home but he will not be lured by this fat carrot.
He was quoted as saying: 'I feel a great sense of achievement when I'm here. It has taken me a lot of hard work to get this house and everything that's inside.'
4 June 2007
THE local property market is sizzling hot right now.
En-bloc sales are the talk of town, luxury developments are snapped up almost instantly, and property prices are at an all-time high.
The Singapore Press Holdings' classified sections have seen a surge of more than 20 per cent in advertisements for apartments in the prime districts of 9, 10 and 11.
So it's no wonder that some savvy celebrities have jumped on the bandwagon to benefit from the property market.
While not all of them had profit on their minds, celebrities like Chen Hanwei, Bryan Wong, Quan Yifeng and David Gan made profits by moving out this year.
Not to mention singer Sun Ho, who stands to make about $1 million if the collective sale for her condo, Horizon Towers in Leonie Hill, passes through.
In particular, The Glacier, a condominium development in Joo Chiat which was dubbed Kampong Glam for its unusual number of celebrity residents, suffered mass exodus when the celebs moved out.
The condo used to boast of residents like Bryan, Yifeng, Lynn and Darren Seah.
Hanwei added to the estate's star quotient when he moved in last December.
Bryan was the first to leave. He moved out of his 130 sq m apartment in April.
According to Lianhe Zaobao, Bryan downgraded to a three-bedroom HDB flat in a bid to seek a 'simpler life'.
Other reports said he had gleaned some financial tips after hosting the Dollars and Sense gameshow, and had sold off his three-year-old apartment to cash in on the property boom.
Bryan is currently overseas and could not speak to The New Paper on Sunday.
His move was closely followed by Hanwei, who moved out of his penthouse unit after a mere four months.
He had bought his 214 sq m three-bedroom unit for close to $1m last year, but sold it off in April.
A quick check with the Urban Redevelopment Authority website showed that his unit probably sold for nearly $1.25m. Which means that Hanwei would have made a neat profit of at least $200,000 within four months.
Yet Hanwei claimed that his reasons for moving out were personal and not financial.
'My mom and two young nephews come to stay over very often. The apartment had a lot of glass fixtures in the balcony, rooms and toilet.
'I decided to get a new place that would be safer for my nephews, who are 8 and six-months-old.'
Hanwei also insisted that he didn't make much profit from the sale of his Joo Chiat apartment after taking away the cost of renovations ($30,000) and furniture.
Before buying the Joo Chiat condo, Hanwei used to live in rented apartments at Newton and Serangoon Gardens.
He said: 'I fell in love with it when I first saw it. It was the first home I owned and lived in.'
He is currently renting a one-bedroom apartment in Siglap for a little over $2,000 a month, and has no intentions of buying another home.
'I'll be renting until the property market cools down before I start looking at buying again,' he said.
So doesn't this make him quite a property guru in the making?
After all, Hanwei also sold off his 60sq m loft at the The Icon in Tanjong Pagar before its completion two years ago for a profit.
He had bought the apartment two years ago at around '$400,000 to $500,000' and claims he made only about '$20,000 to $30,000' when he sold it off at the end of 2005.
'The property market was soft at that time,' said Hanwei.
And according to a report that year, a 57 sq m unit at The Icon was going for about $390,000.
Hanwei said he sold off his loft because he had just bought a piano, and there was 'no space in that small loft to put it'.
And it was sheer luck that both his properties sold for a profit.
'I just bought it because I liked it. I don't know how to make investments in the property industry.'
Despite Hanwei's denials about his investment acumen, it was through him that neighbour and colleague Yifeng sold off her own unit and found a new home.
Like Bryan, Yifeng was looking to downgrade.
Yifeng told Shin Min Daily News that Hanwei put her in touch with another actor, Jeffrey Wang Yuqing, whose friend later bought Yifeng's unit.
On the sale, Yifeng said: 'Well, there was money to be made. Now that the prices of private property are rising, of course you should sell now. Why wait?'
She also told Lianhe Zaobao that it was a prudent move as husband Peter Yu had just started out as a property agent.
Yifeng had bought her four-bedroom 123 sq m apartment for around $750,000 three years ago, and sold it off for about $800,000.
When asked about her profit, Yifeng reportedly replied: 'It's enough to pay for three years' rental, and I will still have a five-figure sum left over.'
Even then, she joked that she didn't make as much profit as Bryan and Hanwei because 'unlike them, I could not boast of my condo being a celebrity condo anymore, since they had already
moved out'.
It is not clear when the estate's two other celebrity residents Lynn and Darren, moved out.
Yifeng is now in the midst of moving to a smaller rented apartment in the east.
Her new place is three quarters the size of her old apartment. The monthly rental is $2,500.
Asked if she felt sad about downgrading, Yifeng said: 'There is no stability in showbiz. The risks are big, so why pressure yourself with the burden of a home mortgage?'
All this moving and selling is tempting actor Vincent Ng, who lives nearby in Marine Parade.
The 32-year-old said that he is currently 'researching' the property market, as he hopes to sell his condo unit for a profit, and downgrade to a flat or rented property.
Actor Christopher Lee also apparently sold off his 900 sq ft apartment at Newton 18 some time after Chinese New Year this year.
He had bought the apartment for around $1m in 2003.
It was reported at that time that Fann Wong also bought a unit in the same condo as an investment.
At the time, Christopher had told Shin Min Daily News: 'This is a home I have purchased, and if I get married, it will be here...'
Unfortunately, that doesn't seem to be the case now.
According to Lianhe Wanbao, Christopher has not returned often to his Newton apartment after he was arrested for drink driving last October.
The 36-year-old actor is currently serving a four-week jail term for his offence.
It was not known why he sold the apartment. According to URA records, a unit of the same size in Newton sold for around $1.1m in February.
Which means Christopher probably didn't profit as much as the others.
Another star who didn't profit from selling is celebrity coiffeur David Gan.
He recently moved from his Paterson Edge apartment into a posh three-bedroom pad in The Boulevard Residence (BLVD) off Orchard Road, which has Fann as a resident.
He reportedly paid $5m for the apartment - nearly double what he received for his 120 sq m Paterson Edge sale.
The 44-year-old has been offered $6.5m for his new home but he will not be lured by this fat carrot.
He was quoted as saying: 'I feel a great sense of achievement when I'm here. It has taken me a lot of hard work to get this house and everything that's inside.'
Thursday, June 7, 2007
The Cascadia
The Cascadia
The Cascadia
>
The Cascadia
It has a land area of approximately 27,570.8 sqm. In its immediate locality are good class bungalows and high end condominium developments. Eateries like Cold Storage, King Albert Park, Coronation Plaza and Bukit Timah Plaza, good schools like Methodist Girls' School, Ngee Ann Polytechnics and Hwa Chong Junior College and reputable clubhouses like Singapore Island Country Club, Raffles Town Club and our 'close to nature' Singapore Botanic Garden are within easy access, making this an ideal and convenient location.
This is a high end condominium development consisting of 13 blocks with approximately 536 units and basement carpark. These luxurious 3/4 bedroom units are approximately 170 to 200 sqm each. Facilities include clubhouse, swimming pool, water features and tennis courts.
At The Cascadia, most units enjoy a North-South orientation, so you'll always enjoy the natural breeze flowing through your home.
And with units designed with the family in mind, indulge in maximum space and layout efficiency to accommodate the whole family's needs for ultimate luxury living.
Be it a warm meal for the family or a dinner party for friends, you will always find contentment in the spacious kitchen. It's where sophistication meets functional practicality. And fitted with top designer Miele appliances, the sleek design of the kitchen is the perfect place to showcase your culinary skills.
Strategically nested amongst nature parks and surrounded by its accompanying flora and fauna, The Cascadia is definitely the nature lovers' ultimate paradise.
To register your interest in The Cascadia or to request for The Cascadia's brochure (site plan, floor plan, elevation chart), please contact Camilia Ng @ 9763-9937 or email to camiliang@gmail.com. Please also note that pre-booking for The Cascadia has started!
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