Aug 04, 2009
The Straits Times
SINGAPORE may still be mired in recession, but tell that to the home hunters who are flocking to the latest launches.
In the east, a new 297-unit condominium development on the doorstep of Tanah Merah MRT station completely sold out in the three days that followed its preview last Thursday.
Units at Optima went for an average price of around $810 per sq ft, or from $470,000 to $2.06million per unit.Demand remained strong even after developer TID - a joint venture between Hong Leong Group and Mitsui Fudosan - raised prices by 5per cent, from $790 psf on Thursday to $830 psf by Friday.
Keen buyers were already seen queueing days before the launch of the 99-year leasehold condominium.And TID had to conduct a ballot of 120 units for 300 buyers just before midnight on Thursday to prevent them having to camp out overnight for the public launch the next day.
Buyers were a good mix of HDB upgraders and investors, said the Hong Leong Group spokesman.
City Developments has now put on fast track the launch of its 396-unit project at the former Hong Leong Garden condominium site. Over in Ang Mo Kio, another new suburban launch has attracted relatively strong demand, though some price resistance may have settled in over the weekend.
The 329-unit Centro Residences has sold 93 out of the 144 units that were released for sale last week.Most of the units sold were two- to three-bedders. The smallest two-bedders have been sold, leaving those from 872sqft and above, and priced from $1million.
Far East Organization said yesterday that 50per cent of the buyers are HDB upgraders from nearby towns, while the rest are residents from private estates.Prices at the 99-year leasehold condominium started from $1,100 psf - a price level more typical of city-fringe or prime projects, property watchers observed.
'Such prices can get you a freehold condo in Upper Bukit Timah,' said Mr Nicholas Mak, a former property consultant. 'Buyers should be a bit more rational. Demand at such price levels shows that some buyers may be getting carried away by the current euphoria.
'If they are hoping for capital appreciation, they must ask themselves who is going to buy from them at an even higher price when a three-bedroom unit in a suburban project is usually priced less than $1,000 psf,' he added.
Elsewhere, some other fairly new launches continued to attract buyers, but at a much slower pace.
Waterfront Key in Bedok Reservoir sold another eight units at an average price of $735 psf, bringing total sales to 193 out of 278 released units.At the 329-unit The Gale in Flora Road, sales remained around the 90per cent level cited late last week.
Thursday, August 6, 2009
Tuesday, June 30, 2009
Strong sales for new condo launches
30 June 09
The Straits Times
STRONG sales in the property market continued over the weekend as mass- and upper-mid- market launches drew crowds of buyers.
Within three days of its preview launch last Friday, the 68-unit Residences @ Killiney project sold 39 of 60 released units - with sales ongoing, a spokesman for developer Hoi Hup Realty said yesterday.
Preview prices at the Killiney Road condominium ranged from $1,700 per sq ft (psf) to $2,000 psf.
Opposite the condo at Devonshire Road, Allgreen Properties' One Devonshire has sold more than 95 per cent of its 36-storey, 152-unit freehold condo since its launch about two weeks ago.
In the Thomson Road area, Far East Organization sold 84 per cent - or 74 homes - of an initial batch of 88 units at a private preview of its Vista Residences over the weekend.
The 280-unit freehold project offers a range of accommodation from one bedroom to penthouse units starting from $960 psf.Far East will release another 45 units tomorrow - its official launch date - said Mr Chia Boon Kuah, chief operating officer of the firm's property arm.
HSR Property Group executive director Eric Cheng noted that the buying activity - which started in mass-market new condo launches - seems to have moved into the higher market segments.
'This is undoubtedly due to the stock market rally, more positive sentiment, and is enabled by the interest absorption scheme,' he said. The scheme allows buyers to pay a deposit and postpone monthly home loan payments until the project is completed. 'This is attracting the investors to come out in droves,' he added.
In the mass market, sales continued with Frasers Centrepoint announcing yesterday that its two projects, 8@Woodleigh and Woodsville 28, were sold out.All 330 units at 8@Woodleigh in Potong Pasir were fully sold last Saturday at an average price of $790 psf. And all 110 units of Woodsville 28 were sold by last Tuesday at an average price of $775 psf.
At Pasir Ris, half of the 142 units at Chip Eng Seng group's Oasis@Elias previewed over the weekend were sold, said its marketing agent CB Richard Ellis.
On the east coast, the 94-unit Parc Seabreeze in Marine Parade is selling well with the project close to 70 per cent sold, said HSR, which is marketing the project. Units are fetching from $1,050 psf to $1,550 psf.Mr Colin Tan, Chesterton Suntec International's head of research and consultancy, noted that there had been 'pent-up demand' resulting in strong sales activity, but added that this was 'not sustainable'.'Unlike the boom years, where foreigners made up a huge number of buyers, it is mostly locals who are on this buying spree,' he said.Property expert
Nicholas Mak expects a moderation of buying activity in the coming months, especially as developers continue to revise their prices upwards.
The Straits Times
STRONG sales in the property market continued over the weekend as mass- and upper-mid- market launches drew crowds of buyers.
Within three days of its preview launch last Friday, the 68-unit Residences @ Killiney project sold 39 of 60 released units - with sales ongoing, a spokesman for developer Hoi Hup Realty said yesterday.
Preview prices at the Killiney Road condominium ranged from $1,700 per sq ft (psf) to $2,000 psf.
Opposite the condo at Devonshire Road, Allgreen Properties' One Devonshire has sold more than 95 per cent of its 36-storey, 152-unit freehold condo since its launch about two weeks ago.
In the Thomson Road area, Far East Organization sold 84 per cent - or 74 homes - of an initial batch of 88 units at a private preview of its Vista Residences over the weekend.
The 280-unit freehold project offers a range of accommodation from one bedroom to penthouse units starting from $960 psf.Far East will release another 45 units tomorrow - its official launch date - said Mr Chia Boon Kuah, chief operating officer of the firm's property arm.
HSR Property Group executive director Eric Cheng noted that the buying activity - which started in mass-market new condo launches - seems to have moved into the higher market segments.
'This is undoubtedly due to the stock market rally, more positive sentiment, and is enabled by the interest absorption scheme,' he said. The scheme allows buyers to pay a deposit and postpone monthly home loan payments until the project is completed. 'This is attracting the investors to come out in droves,' he added.
In the mass market, sales continued with Frasers Centrepoint announcing yesterday that its two projects, 8@Woodleigh and Woodsville 28, were sold out.All 330 units at 8@Woodleigh in Potong Pasir were fully sold last Saturday at an average price of $790 psf. And all 110 units of Woodsville 28 were sold by last Tuesday at an average price of $775 psf.
At Pasir Ris, half of the 142 units at Chip Eng Seng group's Oasis@Elias previewed over the weekend were sold, said its marketing agent CB Richard Ellis.
On the east coast, the 94-unit Parc Seabreeze in Marine Parade is selling well with the project close to 70 per cent sold, said HSR, which is marketing the project. Units are fetching from $1,050 psf to $1,550 psf.Mr Colin Tan, Chesterton Suntec International's head of research and consultancy, noted that there had been 'pent-up demand' resulting in strong sales activity, but added that this was 'not sustainable'.'Unlike the boom years, where foreigners made up a huge number of buyers, it is mostly locals who are on this buying spree,' he said.Property expert
Nicholas Mak expects a moderation of buying activity in the coming months, especially as developers continue to revise their prices upwards.
Sunday, June 28, 2009
Meier Suites
Meier Suites Launching Soon!
Meier Suites Located on Prime District 15 of Meyer Rd (Off Meyer Road Ex Margate Mansion)
Description
Developer: SB (Meyer) Development Pte Ltd (A subsidiary of Soilbuild Group Holdings Ltd)
Full condo status with full facilities
Expected TOP: 31 Dec 2014
Expected Date of Legal Completion: 31 Dec 2017
Ample parking lots of 114 in total
Tenure: Freehold
Total No. of units: 55
Units Mix:
3 bedroom - 1798 sqft (Ensuites) 12 units
4 bedroom - 2207 sqft (Ensuites) 26 units
4 bedroom - 2228 sqft (Ensuites) 13 units
3 bedroom PH - 3380 (Pte Pool) 1 unit
4 bedroom PH - 4133 sqft (Pte Pool) 2 units
4 bedroom PH - 4166 sqft (Pte Pool) 1 unit
Wednesday, June 24, 2009
The Gale
The Gale Launching Soon!
Developer: Tripartite Developers Pte Ltd
Project name: The Gale
Property Type: Condominium
Tenure: Freehold
Nos of unit: 329
Apartment Type: 1 bedroom, 2 bedrooms, 2+1 bedrooms, 3 bedrooms, 3+1 bedrooms and 4 bedrooms
The Gale is a freehold Condominium project by Tripartite Developers Pte Ltd. located at Flora Road which is near Changi Airport, eastern part of Singapore.
The Gale Condo is an ideal home for singles, newly-married couples, and families with young children and extended families who want to enjoy contemporary and stylish living at a very comfortable price level.
The Gale Condo will be a popular choice for up-graders and discerning buyers who yearn for good quality finishes and all the convenience within reach.
The Gale Condo is accessible via the nearby expressways – Pan Island Expressway (PIE), Tampines Expressway (TPE) and East Coast Parkway (ECP). It takes only 5 minutes or less to commute to the Changi Airport.
It takes about 5 minutes drive or bus ride from The Gale Condo to the nearest Simei or Tampines MRT station. The Gale Condo nearby amenities include Loyang Point, White Sands, Tampines Mall, Century Square, Tampines One, The Japanese School Tanah Merah & Laguna Golf and Country Club.
Tripartite Developers Pte Ltd has a series of developments in the area named in alphabetical order after fauna and flora: Azalea Park, Ballota Park, Carissa Park, Dahlia Park, Edelweiss Park, Ferraria Park and now The Gale.
For registration of interest for private preview or prebooking of units at The Gale, please sms or call 9763 9937 or email camiliang@gmail.com.
Friday, June 19, 2009
Viva
Viva Condo
The Condo, Viva’s freehold site has a land area of approximately 10,540.5 sqm and is located on the western side of Thomson road, almost mid-way between its junctions with Newton/Kampong Java Roads. The immediate vicinity is mixed in nature comprising residential developments such as “Lincoln Lodge”, “Suffolk Apartments”, amongst others, interspersed by commercial developments such as United Square, Goldhill Centre/Plaza and Revenue House.
Prominent developments in the vicinity also include Hotel Royal and St Michael’s Primary School. Accessibilty to and from the subject property is exhanced by its proximity to the Central Expressway and major roads such as Thomson/Bukit Timah Roads.
Viva is within walking distance from the Novena MRT station. Viva will comprise of 2 blocks of 30 storey with a total of 248 condominium units (2/3/4 bedrooms type) with basement carparks. Viva's common facilities includes swimming pool, tennis court and clubhouse.
Location: No. 2, 6 & 8 Suffolk Walk
No of units: 235
· 2BR (957 sqft) : 25
· 2+S (1044 sqft) : 25
· 3BR (1323 – 1345 sqft) : 69
· 3+S (1517 – 1528 sqft) : 39
· 4BR (1840 – 1991 sqft) : 65
· Suites (2486 – 3810 sqft) : 9
· Penthouses (4908 – 6339) : 3
Please register your interest in Viva by contacting 9763 9937 or emailing camiliang@gmail.com
Top-end bungalows going, going, gone
18 June, 2009
The Straits Times
(SINGAPORE) The most prestigious segment of Singapore's residential property sector has picked up over the past two months.
Seven good class bungalows (GCBs) were sold in April and May - up from just two transactions in Q1 2009 - according to Savills Singapore's analysis of caveats captured by URA Realis.
The numbers are for bungalows with the minimum plot size of 1,400 square metres (about 15,069 square feet) stipulated for GCBs in the 39 GCB areas (GCBAs) here gazetted by the Urban Redevelopment Authority (URA).
However, if bungalows with land areas below 1,400 sq m are also included, the April-May period saw 10 caveats - again significantly higher than the three caveats lodged in Q1.
'The higher GCB sales in April and May reflect the general improvement in investment sentiment on the back of the stockmarket rally. Some GCB buyers could also be savvy investors who made money in the stock market. Going ahead, they may feel that there's more upside than downside for GCB prices,' says Savills' director for prestige homes Steven Ming.
The biggest GCB transaction in May (and also so far this year) was the $30 million sale of 2A Ridley Park, which has 27,233 sq ft land area. The price works out to $1,101 per square foot (psf) of land area - also the highest on a unit land price basis in 2009.
At least one other transaction has been done at above $1,000 psf recently, although it has yet to be reflected in caveats: 1 Cluny Hill, which was sold for $16.2 million or $1,081 psf based on its 14,985 sq ft plot size. Forbes Property Realty Network brokered the deal.
Douglas Wong, director, luxury homes at CB Richard Ellis, notes that GCB investors in Singapore often own two or more such properties - one for their own residence and the rest for investment. 'With the recent increase in activity, they may consider it opportune to liquidate some of their GCB holdings and get some cash back to plough into other investments or their business,' he said.
Compared with just three GCB transactions in Q1, Mr Wong expects some 14-17 deals in Q2. 'Assuming the stock market is able to hold up till the end of 2009, we estimate that some 38-45 GCBs could be sold for the whole of 2009, amounting to a total quantum of some $700-800 million,' he added. This would not be far off from the $827 million from the sale of 51 GCBs last year.
Other notable GCB transactions in May include a property at Jervois Road that sold for $13 million ($862 psf), and another bungalow at Binjai Rise that was sold for $19.8 million ($871 psf) to international action star Jet Li.
The highest ever psf price attained for a bungalow in a GCB area is $1,899 psf for 32H Nassim Road in October 2007. But the area of that plot is 13,423 sq ft, less than the minimum GCB plot size. That's why the GCB benchmark is generally considered $1,308 psf - the price obtained for 15 White House Park, with 22,012 sq ft land area, in August 2007.
Activity in the landed housing market first started picking up this time around in the 'low-end' segment - meaning terraced and semi-detached houses - about three months ago, said Michael French, MD of Asia Premier Property Consultants.
'We have not seen such buying levels in the market for a long time,' he said.
The activity then filtered up to smaller bungalows of about 4,000-8,000 sq ft. Then, about four weeks ago, demand for GCBs took off, with several large deals being concluded in May.
More big GCB deals are on the cards. BreadTalk founder and chairman George Quek is looking to sell his 2 Swettenham Road GCB and the price tag could be as high as $33 million, or $991 psf. Mr Quek bought the property, with 33,293 sq ft land area, with his wife last year for $27 million or $811 psf. He has appointed Newsman Realty to handle the sale, and the firm's managing director, KH Tan, hopes to get $33 million for the 1960s bungalow.
The property will be sold through a closed tender on June 30. Mr Tan has pre-selected 30 prospective buyers whom he intends to invite to view the property and to participate in the bidding exercise. Part of the proceeds from the sale will be donated to charity.
The Straits Times
(SINGAPORE) The most prestigious segment of Singapore's residential property sector has picked up over the past two months.
Seven good class bungalows (GCBs) were sold in April and May - up from just two transactions in Q1 2009 - according to Savills Singapore's analysis of caveats captured by URA Realis.
The numbers are for bungalows with the minimum plot size of 1,400 square metres (about 15,069 square feet) stipulated for GCBs in the 39 GCB areas (GCBAs) here gazetted by the Urban Redevelopment Authority (URA).
However, if bungalows with land areas below 1,400 sq m are also included, the April-May period saw 10 caveats - again significantly higher than the three caveats lodged in Q1.
'The higher GCB sales in April and May reflect the general improvement in investment sentiment on the back of the stockmarket rally. Some GCB buyers could also be savvy investors who made money in the stock market. Going ahead, they may feel that there's more upside than downside for GCB prices,' says Savills' director for prestige homes Steven Ming.
The biggest GCB transaction in May (and also so far this year) was the $30 million sale of 2A Ridley Park, which has 27,233 sq ft land area. The price works out to $1,101 per square foot (psf) of land area - also the highest on a unit land price basis in 2009.
At least one other transaction has been done at above $1,000 psf recently, although it has yet to be reflected in caveats: 1 Cluny Hill, which was sold for $16.2 million or $1,081 psf based on its 14,985 sq ft plot size. Forbes Property Realty Network brokered the deal.
Douglas Wong, director, luxury homes at CB Richard Ellis, notes that GCB investors in Singapore often own two or more such properties - one for their own residence and the rest for investment. 'With the recent increase in activity, they may consider it opportune to liquidate some of their GCB holdings and get some cash back to plough into other investments or their business,' he said.
Compared with just three GCB transactions in Q1, Mr Wong expects some 14-17 deals in Q2. 'Assuming the stock market is able to hold up till the end of 2009, we estimate that some 38-45 GCBs could be sold for the whole of 2009, amounting to a total quantum of some $700-800 million,' he added. This would not be far off from the $827 million from the sale of 51 GCBs last year.
Other notable GCB transactions in May include a property at Jervois Road that sold for $13 million ($862 psf), and another bungalow at Binjai Rise that was sold for $19.8 million ($871 psf) to international action star Jet Li.
The highest ever psf price attained for a bungalow in a GCB area is $1,899 psf for 32H Nassim Road in October 2007. But the area of that plot is 13,423 sq ft, less than the minimum GCB plot size. That's why the GCB benchmark is generally considered $1,308 psf - the price obtained for 15 White House Park, with 22,012 sq ft land area, in August 2007.
Activity in the landed housing market first started picking up this time around in the 'low-end' segment - meaning terraced and semi-detached houses - about three months ago, said Michael French, MD of Asia Premier Property Consultants.
'We have not seen such buying levels in the market for a long time,' he said.
The activity then filtered up to smaller bungalows of about 4,000-8,000 sq ft. Then, about four weeks ago, demand for GCBs took off, with several large deals being concluded in May.
More big GCB deals are on the cards. BreadTalk founder and chairman George Quek is looking to sell his 2 Swettenham Road GCB and the price tag could be as high as $33 million, or $991 psf. Mr Quek bought the property, with 33,293 sq ft land area, with his wife last year for $27 million or $811 psf. He has appointed Newsman Realty to handle the sale, and the firm's managing director, KH Tan, hopes to get $33 million for the 1960s bungalow.
The property will be sold through a closed tender on June 30. Mr Tan has pre-selected 30 prospective buyers whom he intends to invite to view the property and to participate in the bidding exercise. Part of the proceeds from the sale will be donated to charity.
Friday, June 12, 2009
One Devonshire
One Devonshire Launching Soon!
One Devonshire Condo
One Devonshire Condo
One Devonshire is an exclusive development comprising only 152 units.
The eye-catching development with its contemporary architecture and unique 7-sky-gardens concept will appeal to all. Each exquisitely designed sky garden has its own unique theme. Facilities include, among other things, a clubhouse, swimming pool and tennis court.
One Devonshire is a prime residential development and its close proximity to Orchard Road, Singapore River, CTE and Somerset MRT station makes it an ideal and convenient place to live in. In its vicinity are schools such as CHIJ, River Valley Primary School.
One Devonshire, a magical address where the beauty of nature is portrayed in a multitude of stunning executions. This is the wonder - a superb freehold condominium with seven exquisite garden. The perfection of it's exterior is carried through to its interior. With its selection of 2-, 3- and 4-bedroom as well as extraordinary Sky Suites and penthouses available, it offers living space to suit the most discerning homeowners and investors.
Key Features:
- 2 - 5 bedrooms
- Leisure Facilities
- Modern
- 24hr security
- Function Rooms
- Gardens / Grounds
- Gym
- High Rise
- New Development
- Swimming Pool
- Tennis Court
Unit Types:
- 2-Bedroom : 904 to 915 sqft
- 3-Bedroom : 1194 to 1410 sqft
- 4-Bedroom : 1463 to 1603 sqft
- Sky Suites : 2400 to 2755 sqft
- Penthouses : 4154 to 4876 sqft
Foreigners eye S'pore homes again
12 June 09
The Straits Times
FOREIGN buyers are back to snap up homes here after bolting for the exits during the financial turmoil late last year.
The number of foreign private home purchases in April and May is already up on the first quarter but no one is claiming a significant turnaround is under way, although sales numbers hint at 'green shoots'.
The mix of buyers has also changed from the boom of 2007 and early last year. Then, Koreans, Americans, Russians, and people from the Middle East and elsewhere joined regional buyers to invest at the high end of the market, often with the aim of flipping the property to other investors.
Now buyers from Malaysia, Indonesia and China are dominating, and they are mostly picking up bargain-price units under $1 million for their own use or investment, according to property consultant Jones Lang LaSalle. Its analysis of non-landed private home caveats lodged in April and May found that foreigners bought 202 properties, up 15 per cent from the 175 bought in the first quarter and the 156 deals done in the last three months of last year.
They are taking advantage of bargains in the weak market and low interest rates, said Jones Lang LaSalle associate director of research Desmond Sim.
In the first five months this year, about 57 per cent of the foreign buyer caveats were in the $500,000 to $1 million price category. This is slightly more than for the same periods in 2004 and 2005.
Unlike the rising market in 2004 and 2005 when foreigners bought mostly new launches, buyers now are largely going for resale homes. 'During that period (2004-2005), Singapore prime residential prices were in the region of US$7,745 (S$11,200) per sq m compared to our 'cousin' Hong Kong at US$20,500 per sq m,' said Mr Sim.
Most foreign buyers then came from within Asia and saw cheaper homes here as good investments, he said. Many at the time made use of the deferred payment scheme to earn quick capital gains through flipping the units in the sub-sale market, he added.
Resale homes became popular in 2006 and 2007 as more foreigners - who came mainly as the banking and financial industries grew - chose to buy instead of paying sky-high rents.
The resale interest is back. Several resale caveats lodged this year came from districts 10 and 22, with The Tessarina in Bukit Timah and The Lakeshore in Jurong among the popular projects. The significant first-quarter price correction which made homes cheaper than before, 'and thus perceived as having more upside potential', may be a key reason why foreigners buy here instead of elsewhere, said Mr Sim.
Still, he said in-house research showed that luxury prime homes are still about 51 per cent above their last trough in the first quarter of 2005. Mass market prices are about 36 per cent above the 2005 level. This suggests more price falls may be on the way, said Mr Sim.
The impact foreigners can have in the property market cannot be underestimated. After all, they helped push up private home prices, particularly in prime areas, during the boom. 'We do not deny the potential these buyers bring to our market but, given the larger global uncertainty, we reckon it is too early to predict if this is a turn,' said Mr Sim.
Foreigners accounted for 10.6 per cent to nearly 17 per cent of total sales in the four quarters last year. But they made up less than 10 per cent of total sales this year, Jones Lang LaSalle data shows.
'The foreigners are not coming back in a strong way. During boom times, we saw less traditional foreign buyers such as foreign funds and foreigners from places like Europe,' said Mr Sim.
The buyers now are from the region, and mostly keen on mass to mid-end properties, he said.
These are the 'very localised' foreigners already familiar with the Singapore market and have kept track of what is going on, said Savills Residential director Phylicia Ang.
Cash-rich foreigners from farther afield who target prime property have not yet returned, she said.
Still, more foreign buyers are likely to return in the next three to six months, said Knight Frank executive director Peter Ow. 'Once news spread that the market is recovering, they won't want to miss out.'
The Straits Times
FOREIGN buyers are back to snap up homes here after bolting for the exits during the financial turmoil late last year.
The number of foreign private home purchases in April and May is already up on the first quarter but no one is claiming a significant turnaround is under way, although sales numbers hint at 'green shoots'.
The mix of buyers has also changed from the boom of 2007 and early last year. Then, Koreans, Americans, Russians, and people from the Middle East and elsewhere joined regional buyers to invest at the high end of the market, often with the aim of flipping the property to other investors.
Now buyers from Malaysia, Indonesia and China are dominating, and they are mostly picking up bargain-price units under $1 million for their own use or investment, according to property consultant Jones Lang LaSalle. Its analysis of non-landed private home caveats lodged in April and May found that foreigners bought 202 properties, up 15 per cent from the 175 bought in the first quarter and the 156 deals done in the last three months of last year.
They are taking advantage of bargains in the weak market and low interest rates, said Jones Lang LaSalle associate director of research Desmond Sim.
In the first five months this year, about 57 per cent of the foreign buyer caveats were in the $500,000 to $1 million price category. This is slightly more than for the same periods in 2004 and 2005.
Unlike the rising market in 2004 and 2005 when foreigners bought mostly new launches, buyers now are largely going for resale homes. 'During that period (2004-2005), Singapore prime residential prices were in the region of US$7,745 (S$11,200) per sq m compared to our 'cousin' Hong Kong at US$20,500 per sq m,' said Mr Sim.
Most foreign buyers then came from within Asia and saw cheaper homes here as good investments, he said. Many at the time made use of the deferred payment scheme to earn quick capital gains through flipping the units in the sub-sale market, he added.
Resale homes became popular in 2006 and 2007 as more foreigners - who came mainly as the banking and financial industries grew - chose to buy instead of paying sky-high rents.
The resale interest is back. Several resale caveats lodged this year came from districts 10 and 22, with The Tessarina in Bukit Timah and The Lakeshore in Jurong among the popular projects. The significant first-quarter price correction which made homes cheaper than before, 'and thus perceived as having more upside potential', may be a key reason why foreigners buy here instead of elsewhere, said Mr Sim.
Still, he said in-house research showed that luxury prime homes are still about 51 per cent above their last trough in the first quarter of 2005. Mass market prices are about 36 per cent above the 2005 level. This suggests more price falls may be on the way, said Mr Sim.
The impact foreigners can have in the property market cannot be underestimated. After all, they helped push up private home prices, particularly in prime areas, during the boom. 'We do not deny the potential these buyers bring to our market but, given the larger global uncertainty, we reckon it is too early to predict if this is a turn,' said Mr Sim.
Foreigners accounted for 10.6 per cent to nearly 17 per cent of total sales in the four quarters last year. But they made up less than 10 per cent of total sales this year, Jones Lang LaSalle data shows.
'The foreigners are not coming back in a strong way. During boom times, we saw less traditional foreign buyers such as foreign funds and foreigners from places like Europe,' said Mr Sim.
The buyers now are from the region, and mostly keen on mass to mid-end properties, he said.
These are the 'very localised' foreigners already familiar with the Singapore market and have kept track of what is going on, said Savills Residential director Phylicia Ang.
Cash-rich foreigners from farther afield who target prime property have not yet returned, she said.
Still, more foreign buyers are likely to return in the next three to six months, said Knight Frank executive director Peter Ow. 'Once news spread that the market is recovering, they won't want to miss out.'
Sunday, June 7, 2009
Strong demand at Nathan Residences relaunch
6 June, 09
The Straits Times
FRESH evidence emerged yesterday of a possible short-term rebound in the private residential market with strong demand at a 91-unit development in River Valley.
A quiet relaunch preview was held at the freehold Nathan Residences – and 75 units were snapped up quickly. These sales were sealed even though there was no interest absorption scheme or stamp duty waiver to entice buyers.
The deals were done at $1,220 to $1,320 per sq ft – a level market observers say is not entirely cheap but is easily 30 per cent to 35 per cent below last year’s prices.
Small developer Tat Aik first released the Nathan Road project for sale in September last year.
At prices averaging $1,800 to $2,000 psf, the project saw no takers.
Yesterday, the one-bedders were sold from about $730,000 to $785,000 while the two-bedders went for about $960,000 to just over $1 million. Those are the only two options at Nathan Residences – the one-bedders at 592 sq ft and the two-bedders at 786 sq ft.
All the one-bedders have been sold. The left-over units include eight penthouses costing around $1.6 million each and a few ground-floor units priced around $1.2 million.
Knight Frank, which marketed the project, said buyers were mostly couples and singles, and an overwhelming number were locals and permanent residents. HDB upgraders made up about 30 per cent of buyers.
‘This shows that confidence is back and people are willing to buy when something good comes along,’ said its executive director, Mr Peter Ow.
A new sold-out project sale nearby – The Mercury in Shanghai Road – was launched in March this year. Its 67 units went for a lower price range of $779 psf to $1,258 psf in March and April.
Market observers have said that more developers are preparing to launch their projects, hoping to bank on the renewed buying interest in the market.
Demand for new projects has generally risen as developers lower prices from earlier levels. The buying mood has also largely been helped by the recent rally in the stock market, observers said.
However, quite a number of individual sellers appear to have started raising their prices from the lows, following in the footsteps of some developers.
Upcoming major launches this month may include the 152-unit One Devonshire in the Killiney Road area, the 388-unit Oasis@Elias in Pasir Ris and Frasers Centrepoint Homes’ 330-unit leasehold project near the Woodleigh MRT station.
The Straits Times
FRESH evidence emerged yesterday of a possible short-term rebound in the private residential market with strong demand at a 91-unit development in River Valley.
A quiet relaunch preview was held at the freehold Nathan Residences – and 75 units were snapped up quickly. These sales were sealed even though there was no interest absorption scheme or stamp duty waiver to entice buyers.
The deals were done at $1,220 to $1,320 per sq ft – a level market observers say is not entirely cheap but is easily 30 per cent to 35 per cent below last year’s prices.
Small developer Tat Aik first released the Nathan Road project for sale in September last year.
At prices averaging $1,800 to $2,000 psf, the project saw no takers.
Yesterday, the one-bedders were sold from about $730,000 to $785,000 while the two-bedders went for about $960,000 to just over $1 million. Those are the only two options at Nathan Residences – the one-bedders at 592 sq ft and the two-bedders at 786 sq ft.
All the one-bedders have been sold. The left-over units include eight penthouses costing around $1.6 million each and a few ground-floor units priced around $1.2 million.
Knight Frank, which marketed the project, said buyers were mostly couples and singles, and an overwhelming number were locals and permanent residents. HDB upgraders made up about 30 per cent of buyers.
‘This shows that confidence is back and people are willing to buy when something good comes along,’ said its executive director, Mr Peter Ow.
A new sold-out project sale nearby – The Mercury in Shanghai Road – was launched in March this year. Its 67 units went for a lower price range of $779 psf to $1,258 psf in March and April.
Market observers have said that more developers are preparing to launch their projects, hoping to bank on the renewed buying interest in the market.
Demand for new projects has generally risen as developers lower prices from earlier levels. The buying mood has also largely been helped by the recent rally in the stock market, observers said.
However, quite a number of individual sellers appear to have started raising their prices from the lows, following in the footsteps of some developers.
Upcoming major launches this month may include the 152-unit One Devonshire in the Killiney Road area, the 388-unit Oasis@Elias in Pasir Ris and Frasers Centrepoint Homes’ 330-unit leasehold project near the Woodleigh MRT station.
Tuesday, June 2, 2009
Nathan Residences
Nathan Residences Launched.
Nathan ResidencesWhere the sky & landscape meets.......Nathan Residences, a freehold development consists of two towers of 91 units apartment, comprising of luxurious 1 & 2 bedroom type. All apartments come with a spacious balcony.
Close proximity to the upcoming Business Financial District, Marina Integrated Resort and the vivacious Orchard Turn & Orchard Central is a heaven for city dwellers.
Located in a private estate near to good class bungalows, this hip development will appeal to the young, successful and mobile. Nathan Residences – the home you want to own.
Project Name : Nathan Residences (Former NATHAN COURT)
Developer : Tat Aik Property Pte Ltd
Tenure : Freehold
Total Units : 91
Address : 23 /25 Nathan Road
Expected TOP : est 31 dec 2015 (realistically early 2012)
District : 10
Unit Types :
- 1 bedroom / Studio (592 - 861sf)
- 2 bedroom (786 - 958sf)
- Penthouse (1012 - 1238sf)
- Chill-out Area
- Gym
- Vichy Shower
- Lobby Lounge
- Swimming Pool
- BBQ Pits
- Steam Room
- Male & Female Changing Room
- Landscape Gardens
- Water Features
Nathan Residences Living Room
Nathan Residences Bedroom
Nathan Residences Site Plan
Please call or sms 9763 9937 or email camiliang@gmail.com for Nathan Residences' floorplans. Do register your interest for the invitation to preview at 9763 9937.
Developers sell close to 1,200 homes in May
2 June 09
The Business Times
DEVELOPERS sold an estimated 1,200 private home units in May, according to market watchers. This is comparable to the 1,207 units they sold in April, based on official Urban Redevelopment Authority (URA) numbers.
A BT survey across nine developers as well as some property agents yesterday already showed that some 1,130 units were sold last month. 'Developers could have easily sold about 1,200 units in May if you include all the smaller pockets of developments as well,' a seasoned residential property consultant estimated.
However, BT understands that some units may also be returned by buyers who may have got caught up in the home-buying frenzy fuelled by the stockmarket rally in the past few weeks.
Frasers Centrepoint sold a total 294 units in May - comprising 186 units at Martin Place Residences at Kim Yam Road, 46 at Caspian in the Jurong Lake District, 22 units at Woodsville 28, and 40 homes at Waterfront Waves.
Frasers Centrepoint is developing Waterfront Waves, near Bedok Reservoir, jointly with Far East Organization. The latter sold a total of 165 units (inclusive of Waterfront Waves) last month.
BT eliminated the double-counting for joint-venture projects in arriving at the May sales tally.
City Developments reported total sales of 138 units (of which 97 units came from The Arte at Thomson and 36 units from Livia in Pasir Ris) in May.
CapitaLand also achieved brisk sales for The Wharf Residence at Tong Watt Road.
EL Development also found buyers for a total of 74 units last month (comprising Parc Centennial at Kampong Java Road and Rosewood Suites in Woodlands).
Soilbuild is understood to have sold close to 90 units at The Mezzo in the Balestier location. In other developments, sales of around 30 units were seen for Kovan Residences and 21 units at BelleRive in Bukit Timah.
According to official government numbers, developers sold 1,332 private homes in February, followed by 1,220 units in March and 1,207 units in April.
Lower property prices have been the main attraction for buyers, said DTZ executive director Ong Choon Fah.
Many developers have either re-priced or re-sized their units to make them more affordable.
Many people also feel that residential property prices have corrected substantially, she added.
'The thinking is: whether it's the bottom or not, probably the worst is over so it's about time to go in.
'The recent stockmarket rally has also helped to improve sentiments, Mrs Ong said.
With sales momentum gathering, developers have been gradually inching up prices for mass-market and mid/upper segment projects, following earlier price reductions from the 2007 peak levels.
However, pricing power is not expected to return to developers of luxury projects anytime soon. 'The price push in 2006-2007 period came from overseas buyers; this segment is still out of action,' a developer said.
A veteran developer observed that buyers now include those who had been sidelined by the rapid price surge in 2007.
Whereas the 2006/2007 residential property bullrun was substantially wealth-driven, with a strong element of overseas money, the current recovery in home buying has started in the mass-market and is now permeating to the mid/upper-middle segments, he added.
'So this is a traditional, bottom-up recovery, which is more sustainable. Upward price movements will be constrained by affordability at the end of the day,' he added.
DTZ's Mrs Ong too agrees that while there is 'cautious optimism' in the property market, developers are unlikely to raise prices significantly at this point in time.
Some developers may have lowered the level of discounts for projects that have sold well but they are doing this carefully.
'You don't want to derail the momentum that has been built up,' she said.
The Business Times
DEVELOPERS sold an estimated 1,200 private home units in May, according to market watchers. This is comparable to the 1,207 units they sold in April, based on official Urban Redevelopment Authority (URA) numbers.
A BT survey across nine developers as well as some property agents yesterday already showed that some 1,130 units were sold last month. 'Developers could have easily sold about 1,200 units in May if you include all the smaller pockets of developments as well,' a seasoned residential property consultant estimated.
However, BT understands that some units may also be returned by buyers who may have got caught up in the home-buying frenzy fuelled by the stockmarket rally in the past few weeks.
Frasers Centrepoint sold a total 294 units in May - comprising 186 units at Martin Place Residences at Kim Yam Road, 46 at Caspian in the Jurong Lake District, 22 units at Woodsville 28, and 40 homes at Waterfront Waves.
Frasers Centrepoint is developing Waterfront Waves, near Bedok Reservoir, jointly with Far East Organization. The latter sold a total of 165 units (inclusive of Waterfront Waves) last month.
BT eliminated the double-counting for joint-venture projects in arriving at the May sales tally.
City Developments reported total sales of 138 units (of which 97 units came from The Arte at Thomson and 36 units from Livia in Pasir Ris) in May.
CapitaLand also achieved brisk sales for The Wharf Residence at Tong Watt Road.
EL Development also found buyers for a total of 74 units last month (comprising Parc Centennial at Kampong Java Road and Rosewood Suites in Woodlands).
Soilbuild is understood to have sold close to 90 units at The Mezzo in the Balestier location. In other developments, sales of around 30 units were seen for Kovan Residences and 21 units at BelleRive in Bukit Timah.
According to official government numbers, developers sold 1,332 private homes in February, followed by 1,220 units in March and 1,207 units in April.
Lower property prices have been the main attraction for buyers, said DTZ executive director Ong Choon Fah.
Many developers have either re-priced or re-sized their units to make them more affordable.
Many people also feel that residential property prices have corrected substantially, she added.
'The thinking is: whether it's the bottom or not, probably the worst is over so it's about time to go in.
'The recent stockmarket rally has also helped to improve sentiments, Mrs Ong said.
With sales momentum gathering, developers have been gradually inching up prices for mass-market and mid/upper segment projects, following earlier price reductions from the 2007 peak levels.
However, pricing power is not expected to return to developers of luxury projects anytime soon. 'The price push in 2006-2007 period came from overseas buyers; this segment is still out of action,' a developer said.
A veteran developer observed that buyers now include those who had been sidelined by the rapid price surge in 2007.
Whereas the 2006/2007 residential property bullrun was substantially wealth-driven, with a strong element of overseas money, the current recovery in home buying has started in the mass-market and is now permeating to the mid/upper-middle segments, he added.
'So this is a traditional, bottom-up recovery, which is more sustainable. Upward price movements will be constrained by affordability at the end of the day,' he added.
DTZ's Mrs Ong too agrees that while there is 'cautious optimism' in the property market, developers are unlikely to raise prices significantly at this point in time.
Some developers may have lowered the level of discounts for projects that have sold well but they are doing this carefully.
'You don't want to derail the momentum that has been built up,' she said.
Meadows @ Pierce
Meadows @ Pierce launch date: 24th July 2009
Developer : UOL Development Pte Ltd
Tenure : Freehold
Location : Upper Thomson Road (Opposite Pierce Reservoir)
Number of units: 479
Number of block: 1 block of 14 storey and 3 block of 5 storey
TOP : 30 September 2012
Unit Types:
1-Bedroom: 517 - 635 sqft
2-Bedroom: 915 - 1238 sqft
2-Bedroom + PES : 969 - 1238 sqft
3 Bedroom: 1184 - 1518 sqft
3 Bedroom + PES : 1356 -1776 sqft
4 Bedroom: 1625 - 2077 sqft
4 Bedroom + PES : 1981 - 2121 sqft
Garden Mansionette : 2659 – 2702 sqft
Penthouse (3-bedroom + RT ): 2045 - 2236 sqft
Penthouse (4-bedroom + RT ): 2583 - 3068 sqft
Developer : UOL Development Pte Ltd
Tenure : Freehold
Location : Upper Thomson Road (Opposite Pierce Reservoir)
Number of units: 479
Number of block: 1 block of 14 storey and 3 block of 5 storey
TOP : 30 September 2012
Unit Types:
1-Bedroom: 517 - 635 sqft
2-Bedroom: 915 - 1238 sqft
2-Bedroom + PES : 969 - 1238 sqft
3 Bedroom: 1184 - 1518 sqft
3 Bedroom + PES : 1356 -1776 sqft
4 Bedroom: 1625 - 2077 sqft
4 Bedroom + PES : 1981 - 2121 sqft
Garden Mansionette : 2659 – 2702 sqft
Penthouse (3-bedroom + RT ): 2045 - 2236 sqft
Penthouse (4-bedroom + RT ): 2583 - 3068 sqft
Sunday, May 31, 2009
High-end property starting to move
May 31, 09
The Sunday Times
Analysts say buyers looking for good value slowly trickling back into market. Interest in the top end of the property market appears to be slowly picking up from near non-existent levels.
Several investors have trickled back to the resale property market, taking the chance to pick up posh apartments at prices mostly below $2,000 psf, or way below what was quoted last year.
One such unit at the 55-unit The Ladyhill that cost no less than $6.5 million has just been sold to a Korean investor. The price for the freehold apartment works out to $1,700 per sq ft - which was the average price of the first 20 units sold at the condo's 2000 launch. Prior to this deal, only two caveats had been lodged for the property in the past 12 months. Both were done at higher levels - one was for a bigger unit in July last year at $2,149 psf or $9 million, and the other was for a 3,283 sq ft unit for $2,193 psf or $7.2 million last November.
Consultancy Cushman & Wakefield, which brokered the latest deal, said the volume of top-end deals is not quite there yet but interest is certainly slowly picking up. Buyers are looking for good value, said property experts. Resale deals are slowly being done because some sellers are more willing to be flexible and there is limited supply in the market, they said. Developers are still lying low where top-end launches are concerned, said Savills residential director Phylicia Ang.
Indeed, few developers of high-end developments want to sell at today's prices, said Cushman's managing director Donald Han. They would rather wait for the right time to launch as going to market now would require them to cut their price levels by a significant amount, he said.
Government data compiled by Cushman & Wakefield shows that six deals - each worth more than $5 million - were done last month, up from three deals in March. It is a slight improvement from the dismal levels last November (zero deal) and December (one deal). Before the downturn got worse, such deals numbered 21 and 43 in May and June last year. While high-end prices have not stabilised, there may not be a repeat of some very low price levels registered in recent months, experts said. 'Just about three months ago, you could get an Ardmore II unit at less than $1,800 psf. At that time, you couldn't see the daylight in the market,' Ms Ang said. Indeed, a mid-floor Ardmore II unit was sold for only $3.375 million or just $1,668 psf in February while a high-floor unit went for $3.6 million, or $1,779 psf in March, according to caveats lodged.
Caveats lodged last month show four deals done from $1,600 psf to $1,917 psf. At the 2006 launch of Ardmore II, apartments were sold for an average price of about $2,300 psf, or between $4.2 million and $5.5 million per unit. At the nearby 330-unit Ardmore Park - long associated with posh living - no deals were registered in the first three months of this year.
Caveats lodged show that three deals were done last month at $1,976 to $2,184 psf, below the deals of $2,635 to $2,791 psf in June and July last year. Come the second half of the year, Mr Han said he expects to see more resale activity in the upper end of the market for deals worth $5 million and above. Top-end launches, however, may not surface this year. 'If you're talking about the high-end market, as in those priced above $2,000 psf, there won't be any launches until the market improves,' said a consultant who declined to be named. 'If you go above $2,000 psf today, these buyers will disappear.'
The Sunday Times
Analysts say buyers looking for good value slowly trickling back into market. Interest in the top end of the property market appears to be slowly picking up from near non-existent levels.
Several investors have trickled back to the resale property market, taking the chance to pick up posh apartments at prices mostly below $2,000 psf, or way below what was quoted last year.
One such unit at the 55-unit The Ladyhill that cost no less than $6.5 million has just been sold to a Korean investor. The price for the freehold apartment works out to $1,700 per sq ft - which was the average price of the first 20 units sold at the condo's 2000 launch. Prior to this deal, only two caveats had been lodged for the property in the past 12 months. Both were done at higher levels - one was for a bigger unit in July last year at $2,149 psf or $9 million, and the other was for a 3,283 sq ft unit for $2,193 psf or $7.2 million last November.
Consultancy Cushman & Wakefield, which brokered the latest deal, said the volume of top-end deals is not quite there yet but interest is certainly slowly picking up. Buyers are looking for good value, said property experts. Resale deals are slowly being done because some sellers are more willing to be flexible and there is limited supply in the market, they said. Developers are still lying low where top-end launches are concerned, said Savills residential director Phylicia Ang.
Indeed, few developers of high-end developments want to sell at today's prices, said Cushman's managing director Donald Han. They would rather wait for the right time to launch as going to market now would require them to cut their price levels by a significant amount, he said.
Government data compiled by Cushman & Wakefield shows that six deals - each worth more than $5 million - were done last month, up from three deals in March. It is a slight improvement from the dismal levels last November (zero deal) and December (one deal). Before the downturn got worse, such deals numbered 21 and 43 in May and June last year. While high-end prices have not stabilised, there may not be a repeat of some very low price levels registered in recent months, experts said. 'Just about three months ago, you could get an Ardmore II unit at less than $1,800 psf. At that time, you couldn't see the daylight in the market,' Ms Ang said. Indeed, a mid-floor Ardmore II unit was sold for only $3.375 million or just $1,668 psf in February while a high-floor unit went for $3.6 million, or $1,779 psf in March, according to caveats lodged.
Caveats lodged last month show four deals done from $1,600 psf to $1,917 psf. At the 2006 launch of Ardmore II, apartments were sold for an average price of about $2,300 psf, or between $4.2 million and $5.5 million per unit. At the nearby 330-unit Ardmore Park - long associated with posh living - no deals were registered in the first three months of this year.
Caveats lodged show that three deals were done last month at $1,976 to $2,184 psf, below the deals of $2,635 to $2,791 psf in June and July last year. Come the second half of the year, Mr Han said he expects to see more resale activity in the upper end of the market for deals worth $5 million and above. Top-end launches, however, may not surface this year. 'If you're talking about the high-end market, as in those priced above $2,000 psf, there won't be any launches until the market improves,' said a consultant who declined to be named. 'If you go above $2,000 psf today, these buyers will disappear.'
Saturday, May 30, 2009
Developers readying for launches as activity rises
May 29, 09
The Straits Times
MORE developers are preparing to launch new properties in response to a marked improvement in sentiment in Singapore's property market, experts say.
Activity has picked up in the past two to four weeks, they observe. Some developers are now rushing to prepare projects for launch, but they face some inevitable delays. They may lack promotional materials, for instance.
Starting today, Frasers Centrepoint Homes will be releasing more units at its 302-unit freehold Martin Place Residences in the River Valley area. It recently sold more than 100 units of the project after it cut prices. The units were released at $1,260 per sq ft (psf) to $1,700 psf, compared with $1,700 psf to $2,000 psf last year.
Chief operating officer Cheang Kok Kheong said prices ranged from $1.5 million for a two-bedder to about $2 million for a three-bedder. He said Frasers was aiming to sell the remaining units at $1,350 psf to $1,700 psf.
Other weekend launches include Balcon East in Upper East Coast Road. Tong Eng Group started sales at its 37-unit development on Thursday last week and managed to sell 28 units. Prices ranged from just below $500,000 to $1.39 million, with the one- to two-bedders costing about $850 psf, and three-bedders at $780 psf, said Savills Residential director Phylicia Ang.
Next month, new re-launches could include the 91-unit Nathan Residences in Nathan Road and Frasers' 330-unit leasehold project near the Woodleigh MRT station. The former's preview last September at an average of $2,000 psf met with no success.
Frasers has reconfigured the layout in the Woodleigh project, which previously had 300 units, to accommodate the more affordable one-bedders of 400 sq ft. The rest will be two-, three- and four-bedders. Prices will be 'at the upper end of $750 psf to $780 psf', said Mr Cheang.
There are still many projects waiting to be launched and certainly not all will be on the market soon. 'Those developers who are ready will see this as a good window period to launch, but the really high-end projects won't come out soon,' said Ms Ang.
Developers will launch if they can accept today's pricing, as the recent re-launches are easily 25 per cent to 30 per cent below the peak, said Knight Frank executive director Peter Ow.
The Straits Times
MORE developers are preparing to launch new properties in response to a marked improvement in sentiment in Singapore's property market, experts say.
Activity has picked up in the past two to four weeks, they observe. Some developers are now rushing to prepare projects for launch, but they face some inevitable delays. They may lack promotional materials, for instance.
Starting today, Frasers Centrepoint Homes will be releasing more units at its 302-unit freehold Martin Place Residences in the River Valley area. It recently sold more than 100 units of the project after it cut prices. The units were released at $1,260 per sq ft (psf) to $1,700 psf, compared with $1,700 psf to $2,000 psf last year.
Chief operating officer Cheang Kok Kheong said prices ranged from $1.5 million for a two-bedder to about $2 million for a three-bedder. He said Frasers was aiming to sell the remaining units at $1,350 psf to $1,700 psf.
Other weekend launches include Balcon East in Upper East Coast Road. Tong Eng Group started sales at its 37-unit development on Thursday last week and managed to sell 28 units. Prices ranged from just below $500,000 to $1.39 million, with the one- to two-bedders costing about $850 psf, and three-bedders at $780 psf, said Savills Residential director Phylicia Ang.
Next month, new re-launches could include the 91-unit Nathan Residences in Nathan Road and Frasers' 330-unit leasehold project near the Woodleigh MRT station. The former's preview last September at an average of $2,000 psf met with no success.
Frasers has reconfigured the layout in the Woodleigh project, which previously had 300 units, to accommodate the more affordable one-bedders of 400 sq ft. The rest will be two-, three- and four-bedders. Prices will be 'at the upper end of $750 psf to $780 psf', said Mr Cheang.
There are still many projects waiting to be launched and certainly not all will be on the market soon. 'Those developers who are ready will see this as a good window period to launch, but the really high-end projects won't come out soon,' said Ms Ang.
Developers will launch if they can accept today's pricing, as the recent re-launches are easily 25 per cent to 30 per cent below the peak, said Knight Frank executive director Peter Ow.
Tuesday, May 26, 2009
Gradual rise in home prices seen
May 26, 09
The Straits Times
PRIVATE home prices in most sectors could start to rise gradually this year but high-end property will stay in the doldrums until later next year, according to tycoon Kwek Leng Beng.
Mr Kwek – executive chairman of the Hong Leong Group – said there are many cash-rich buyers waiting for the right time to buy.
‘Every time the market turns, some people would get caught out,’ he added.
The key question that many buyers are asking is: Has the market turned?
Urban Redevelopment Authority data shows that 1,207 new private homes were sold in April, making it the third consecutive month that sales have crossed the 1,000-unit mark.
It is a level reminiscent of the boom period and one that some analysts believe is unlikely to be sustained for long.
But Mr Kwek, who was speaking to The Straits Times on the sidelines of a recent hotel investment conference, feels that these levels of sales can be maintained ‘if the world economy stabilises’.
‘Confidence is the quick key to recovery. When you have confidence, you will invest,’ he said.
Mr Kwek said developers are sometimes wrong but the key is to be more often right than wrong.
He also reiterated that property is an investment over the medium to long term, anywhere from three to 10 years.
Developers got the market message this year and have cut prices to meet buyers’ expectations, following a stand-off that saw just 100-plus units sold in January.
‘If you’re listed, you’ll have to sell something. Otherwise, every quarter, you have no sales,’ said Mr Kwek.
Some developers have actually started to raise their asking prices slightly from their adjusted lows.
The strong sales so far this year have largely prompted two foreign investment houses to turn more positive on the residential market.
A recent UBS report points out that the sales momentum has been stronger than expected, with the possibility of higher prices in the second half of this year and next year.
It had already in a late April report called a ‘buy’ on the property sector, saying that demand from domestic upgraders – not foreign buying – will jump-start the recovery, as with previous recoveries in the 1990s.
Goldman Sachs has also projected a 5 per cent gain in Singapore private home prices next year, reversing its earlier tip of a 10 per cent fall.
‘We think the alignment of developers’ asking prices and buyer expectations would be key for generating sustainable demand,’ said the UBS report.
Nevertheless, not all are optimistic about the market.
‘This wave of purchases, once it’s over, won’t come back until the economy has recovered and embarked on its way up,’ said a property fund manager who declined to be named.
The pent-up demand is coming mostly from owner-occupiers or small investors and these people usually cannot afford to buy more than one unit, he said.
‘Foreigners are still leaving Singapore. When there are not enough real users for all the supply, prices will continue to fall.’
What is happening now in the real estate sector could be similar to the bear rally some analysts foresee for the stock market, he said, adding that the only good news is that mass-market prices are likely to hold at current levels.
Unlike high-end prices, which have fallen at least 35 per cent to 40 per cent from their all-time peak, the mass and mid-market sectors have had falls that are much less steep.
The price fall in high-end homes – which shot to more than $5,000 per sq ft during the boom from around $1,800 psf – is thus steeper, he said.
Average high-end prices may dip to around $2,300 psf, which is still higher than pre-boom levels.
Mr Kwek said the Hong Leong Group – which includes listed Hong Leong Finance, developer City Developments, Hong Leong Asia and London-listed Millennium & Copthorne Hotels – will hold off high-end home launches for now, preferring to start building first.
City Developments, the developer behind projects such as The Sail @ Marina Bay, has in its pipeline The Quayside Isle Collection in Sentosa Cove, a 99-year leasehold enclave where values have more or less collapsed.
High-end home prices were to a large extent boosted by foreign buying. ‘Foreigners will slowly come back but not so soon,’ said Mr Kwek.
The Indonesians, he said, are very slowly returning. Although the trend is barely discernible, it is a change from the previous downturn where they had all but disappeared.
Still, he cautioned against comparing prices with levels done a decade ago: ‘Ten years ago and now, Singapore has changed. Fundamentals are good.’
The country will soon benefit from two integrated resorts, for instance.
‘Worldwide, it is the worst downturn ever. But you see the amount of stimulus around. You can’t see the effects immediately. It will take some time,’ he said.
The Straits Times
PRIVATE home prices in most sectors could start to rise gradually this year but high-end property will stay in the doldrums until later next year, according to tycoon Kwek Leng Beng.
Mr Kwek – executive chairman of the Hong Leong Group – said there are many cash-rich buyers waiting for the right time to buy.
‘Every time the market turns, some people would get caught out,’ he added.
The key question that many buyers are asking is: Has the market turned?
Urban Redevelopment Authority data shows that 1,207 new private homes were sold in April, making it the third consecutive month that sales have crossed the 1,000-unit mark.
It is a level reminiscent of the boom period and one that some analysts believe is unlikely to be sustained for long.
But Mr Kwek, who was speaking to The Straits Times on the sidelines of a recent hotel investment conference, feels that these levels of sales can be maintained ‘if the world economy stabilises’.
‘Confidence is the quick key to recovery. When you have confidence, you will invest,’ he said.
Mr Kwek said developers are sometimes wrong but the key is to be more often right than wrong.
He also reiterated that property is an investment over the medium to long term, anywhere from three to 10 years.
Developers got the market message this year and have cut prices to meet buyers’ expectations, following a stand-off that saw just 100-plus units sold in January.
‘If you’re listed, you’ll have to sell something. Otherwise, every quarter, you have no sales,’ said Mr Kwek.
Some developers have actually started to raise their asking prices slightly from their adjusted lows.
The strong sales so far this year have largely prompted two foreign investment houses to turn more positive on the residential market.
A recent UBS report points out that the sales momentum has been stronger than expected, with the possibility of higher prices in the second half of this year and next year.
It had already in a late April report called a ‘buy’ on the property sector, saying that demand from domestic upgraders – not foreign buying – will jump-start the recovery, as with previous recoveries in the 1990s.
Goldman Sachs has also projected a 5 per cent gain in Singapore private home prices next year, reversing its earlier tip of a 10 per cent fall.
‘We think the alignment of developers’ asking prices and buyer expectations would be key for generating sustainable demand,’ said the UBS report.
Nevertheless, not all are optimistic about the market.
‘This wave of purchases, once it’s over, won’t come back until the economy has recovered and embarked on its way up,’ said a property fund manager who declined to be named.
The pent-up demand is coming mostly from owner-occupiers or small investors and these people usually cannot afford to buy more than one unit, he said.
‘Foreigners are still leaving Singapore. When there are not enough real users for all the supply, prices will continue to fall.’
What is happening now in the real estate sector could be similar to the bear rally some analysts foresee for the stock market, he said, adding that the only good news is that mass-market prices are likely to hold at current levels.
Unlike high-end prices, which have fallen at least 35 per cent to 40 per cent from their all-time peak, the mass and mid-market sectors have had falls that are much less steep.
The price fall in high-end homes – which shot to more than $5,000 per sq ft during the boom from around $1,800 psf – is thus steeper, he said.
Average high-end prices may dip to around $2,300 psf, which is still higher than pre-boom levels.
Mr Kwek said the Hong Leong Group – which includes listed Hong Leong Finance, developer City Developments, Hong Leong Asia and London-listed Millennium & Copthorne Hotels – will hold off high-end home launches for now, preferring to start building first.
City Developments, the developer behind projects such as The Sail @ Marina Bay, has in its pipeline The Quayside Isle Collection in Sentosa Cove, a 99-year leasehold enclave where values have more or less collapsed.
High-end home prices were to a large extent boosted by foreign buying. ‘Foreigners will slowly come back but not so soon,’ said Mr Kwek.
The Indonesians, he said, are very slowly returning. Although the trend is barely discernible, it is a change from the previous downturn where they had all but disappeared.
Still, he cautioned against comparing prices with levels done a decade ago: ‘Ten years ago and now, Singapore has changed. Fundamentals are good.’
The country will soon benefit from two integrated resorts, for instance.
‘Worldwide, it is the worst downturn ever. But you see the amount of stimulus around. You can’t see the effects immediately. It will take some time,’ he said.
Firm demand boosts sales of private homes
May 26 09
The Business Times
DEVELOPERS continued to report encouraging private home sales last week, and some have upped prices on firmer demand.
BelleRive on Keng Chin Road and Martin Place Residences on Kim Yam Road are among the projects where prices have been raised. BelleRive's average price is now 13 per cent higher than when it was previewed in mid-April.
Frasers Centrepoint sold 60 more units last week at Martin Place Residences; new units were released over the weekend at prices that were about 5-7 per cent higher.Chia Boon Kuah, Far East Organization chief operating officer, property sales, told BT that 'in recent weeks, we're seeing growing broad-based demand for our products across our portfolio in every price bracket, from upgrader market to the upper-middle segments to high-end luxury projects'.
Last week, the property giant sold more than 40 units, up from the 30 a week earlier. Far East's home sales for the May 18-24 week include two units at Vida on Peck Hay Road which fetched an average price of $2,030 psf; the buyers did not take up the rental guarantee offered by Far East for the recently completed condo. The developer also sold nine units at Floridian in Bukit Timah at an average price of $1,220 psf.
In the upgrader housing segment, it sold seven units at Mi Casa in Choa Chu Kang, nine units each at Lakeshore near Jurong Lake and Waterfront Waves near Bedok Reservoir. Waterfront Waves is a joint development with Frasers Centrepoint.
Frasers Centrepoint also sold four units each at its Caspian condo in the Jurong Lake location and Woodsville 28 last week.
At Martin Place Residences, the developer released fresh units below the 14th floor sky terrace in the second and final block in the 33-storey condo.
Prices of the freshly released units start from $1,350 psf, higher than the $1,260 psf starting price in the earlier block during the preceding weekend's marketing campaign.
However, the latest pricing is still below the $1,700 psf starting price for the 33-storey freehold project when it was previewed last year. Inclusive of the units sold last week, 168 units in the 302-unit condo are now sold.
Frasers Centrepoint is offering an interest absorption scheme (IAS) for all its four projects on the market - in exchange for a 3 per cent price premium for Caspian and a 2 per cent premium for the rest.
Over in Bukit Timah, a Sing Holdings subsidiary is understood to have sold five units last weekend at BelleRive, taking total sales to 39 units in the 51-unit freehold project. BelleRive was initially priced at $1,350 psf average when it was previewed in mid-April; this was raised to $1,430 psf last week and upped further to $1,530 psf this week. This translates to a 13 per cent price hike in about six weeks.
The average pricing is for the apartments in the 15-storey project, and excludes the two penthouses. About 75 per cent of BelleRive buyers have taken up the IAS offered by the developer at no extra cost.
The units were picked up predominantly by Singaporeans. BelleRive's draws include its proximity to Anglo-Chinese School (Primary) on Barker Road and Singapore Chinese Girls' School along Dunearn Road.
In the Balestier area, Soilbuild is understood to have sold another 25 units at Mezzo over the weekend. The project is priced at about $850-900 psf on average; the cost is 2 per cent more for IAS. Property giant City Developments also sold 14 units last week for The Arte at Thomson condo. The average price in the project is now $900-930 psf, compared with $880 psf when previews began in March. The 336-unit condo is 84 per cent sold.
Near Botanic Gardens, Straits Trading has upped the price of the remaining few units at Gallop Gables to $1,400 psf, from the $1,188 psf average achieved for units sold in the past six weeks. The price increase comes after the developer achieved the sale of its 40th unit in the completed freehold condo.
In the secondary market, some 50-plus units are said to have been sold last week at RiverGate condo near the Singapore River.
These are out of 88 units listed in a sales campaign last week. The average price is about $1,400 to $1,500 psf.The 88 units were from an original pool of 100 units purchased in 2005 by a fund managed by Ferrell Asset Management.
The Business Times
DEVELOPERS continued to report encouraging private home sales last week, and some have upped prices on firmer demand.
BelleRive on Keng Chin Road and Martin Place Residences on Kim Yam Road are among the projects where prices have been raised. BelleRive's average price is now 13 per cent higher than when it was previewed in mid-April.
Frasers Centrepoint sold 60 more units last week at Martin Place Residences; new units were released over the weekend at prices that were about 5-7 per cent higher.Chia Boon Kuah, Far East Organization chief operating officer, property sales, told BT that 'in recent weeks, we're seeing growing broad-based demand for our products across our portfolio in every price bracket, from upgrader market to the upper-middle segments to high-end luxury projects'.
Last week, the property giant sold more than 40 units, up from the 30 a week earlier. Far East's home sales for the May 18-24 week include two units at Vida on Peck Hay Road which fetched an average price of $2,030 psf; the buyers did not take up the rental guarantee offered by Far East for the recently completed condo. The developer also sold nine units at Floridian in Bukit Timah at an average price of $1,220 psf.
In the upgrader housing segment, it sold seven units at Mi Casa in Choa Chu Kang, nine units each at Lakeshore near Jurong Lake and Waterfront Waves near Bedok Reservoir. Waterfront Waves is a joint development with Frasers Centrepoint.
Frasers Centrepoint also sold four units each at its Caspian condo in the Jurong Lake location and Woodsville 28 last week.
At Martin Place Residences, the developer released fresh units below the 14th floor sky terrace in the second and final block in the 33-storey condo.
Prices of the freshly released units start from $1,350 psf, higher than the $1,260 psf starting price in the earlier block during the preceding weekend's marketing campaign.
However, the latest pricing is still below the $1,700 psf starting price for the 33-storey freehold project when it was previewed last year. Inclusive of the units sold last week, 168 units in the 302-unit condo are now sold.
Frasers Centrepoint is offering an interest absorption scheme (IAS) for all its four projects on the market - in exchange for a 3 per cent price premium for Caspian and a 2 per cent premium for the rest.
Over in Bukit Timah, a Sing Holdings subsidiary is understood to have sold five units last weekend at BelleRive, taking total sales to 39 units in the 51-unit freehold project. BelleRive was initially priced at $1,350 psf average when it was previewed in mid-April; this was raised to $1,430 psf last week and upped further to $1,530 psf this week. This translates to a 13 per cent price hike in about six weeks.
The average pricing is for the apartments in the 15-storey project, and excludes the two penthouses. About 75 per cent of BelleRive buyers have taken up the IAS offered by the developer at no extra cost.
The units were picked up predominantly by Singaporeans. BelleRive's draws include its proximity to Anglo-Chinese School (Primary) on Barker Road and Singapore Chinese Girls' School along Dunearn Road.
In the Balestier area, Soilbuild is understood to have sold another 25 units at Mezzo over the weekend. The project is priced at about $850-900 psf on average; the cost is 2 per cent more for IAS. Property giant City Developments also sold 14 units last week for The Arte at Thomson condo. The average price in the project is now $900-930 psf, compared with $880 psf when previews began in March. The 336-unit condo is 84 per cent sold.
Near Botanic Gardens, Straits Trading has upped the price of the remaining few units at Gallop Gables to $1,400 psf, from the $1,188 psf average achieved for units sold in the past six weeks. The price increase comes after the developer achieved the sale of its 40th unit in the completed freehold condo.
In the secondary market, some 50-plus units are said to have been sold last week at RiverGate condo near the Singapore River.
These are out of 88 units listed in a sales campaign last week. The average price is about $1,400 to $1,500 psf.The 88 units were from an original pool of 100 units purchased in 2005 by a fund managed by Ferrell Asset Management.
Location is key if buying to rent out
May 24 2009
Joyce Teo
Now that rents for condominiums are falling, investors looking for buy-to-let homes should be mindful of declining rental yields.
'Rentals in the private housing market are now falling at an estimated average rate of 3 per cent per month, so expect your rental yields to continue falling,' warned Chesterton Suntec International's head of research and consultancy, Mr Colin Tan.
Still, falling yields shouldn't be an issue over the longer term. Said Knight Frank's director of research and consultancy, Mr Nicholas Mak: 'There will be short-term adjustments, but long-term, yields tend to be stable at 2.5 to 3.5 per cent on a net level.'
Low rental yield means either lower rental value per sq ft (psf) per month or higher capital value per sq ft, noted Ms Jacqueline Wong, who heads Jones Lang LaSalle's residential division.For now, the fall in rents looks set to continue and even gather pace.
Urban Redevelopment Authority (URA) data shows private home rents fell 8.5 per cent in the first quarter - the largest quarterly fall since the fourth quarter of 1998. Rents for non-landed prime homes fell the most, by 10.3 per cent.CBRE Research expects rents to stay on a downtrend for the year.
It sees a 3 to 5 per cent fall per quarter till year-end, which would add up to a full-year decline of 15 to 20 per cent.If you are thinking of buying a newly completed unit for rental income, remember there are now fewer expatriates and smaller budgets, but plenty of supply.
Many new developments were bought by investors or speculators. 'Speculators are turning to the rental market to cushion their debt obligations while they wait for prices to improve,' Mr Tan said.
One property investor, who declined to be named, advised: 'If you're buying a resale home for rent, you should try to buy in at a 5 per cent rental yield so you will have, say, a 4 per cent yield when the rental contract ends and has to be renewed at a lower rent.'
This is because leases typically run for two years and rents take a while to catch up. For those still keen on buying to let, Ms Wong's advice is to go for areas popular with expatriates, and be aware of the supply, both existing and upcoming.
Homes in prime districts continue to enjoy stable yields as expats still prefer these areas, she said, adding that projects in such areas posted an average rental yield of 3.5 to 3.7 per cent in the first quarter.
Still, posh homes in prime areas do not command the highest psf rents. First-quarter URA data shows median rents at Icon in Tanjong Pagar and Strata in the Novena area came to $6 psf and $5.11 psf respectively.
In contrast, the newly completed, upscale St Regis Residences commanded just $4.80 psf. Ardmore Park, a coveted property, went for $5.42 psf, down from $6.15 psf in the previous quarter.
'The rental rates for Strata and Icon may seem high, but most of the units are 45 to 100 sq m, whereas those at St Regis Residences and Four Seasons Park are 210 to 300 sq m, so the absolute quantum is smaller,' said CBRE Research.
Rentals are a function of location, unit size, age, condition, quality and other factors. And generally, yields from luxury homes tend to be lower because of their high prices, experts said.
At St Regis Residences and Four Seasons Park, prices range from $1,700 to $2,100 psf, so yields would come to 2.8 to 3.4 per cent, lower than those at Icon, said CBRE Research.
Ms Wong noted that mid-tier projects with smaller units would have higher psf rental values than luxury market projects, as they would still be affordable. Such mid-tier projects would appeal to a middle management expat with a budget of $3,000 to $6,000 a month, she added.
For example, at $5.08 psf a month, a 689 sq ft one-bedder at The Sail @ Marina Bay would cost him $3,500 a month. At $4.83 psf a month, a 1,100 sq ft two-bedder at the swankier Cosmopolitan might appear cheaper at first, but he would have to fork out $5,300 for the larger unit.
All things being equal, 99-year leasehold properties enjoy higher rental yields than freehold ones as they usually cost less. A property's tenure - freehold or leasehold - does not affect the rental value as much as it does the price, experts said.
Location is key, said Ms Wong, so look for a property that is more lettable - one in a prime area or near an MRT station. 'The capital values of such properties will also hold better.'
Joyce Teo
Now that rents for condominiums are falling, investors looking for buy-to-let homes should be mindful of declining rental yields.
'Rentals in the private housing market are now falling at an estimated average rate of 3 per cent per month, so expect your rental yields to continue falling,' warned Chesterton Suntec International's head of research and consultancy, Mr Colin Tan.
Still, falling yields shouldn't be an issue over the longer term. Said Knight Frank's director of research and consultancy, Mr Nicholas Mak: 'There will be short-term adjustments, but long-term, yields tend to be stable at 2.5 to 3.5 per cent on a net level.'
Low rental yield means either lower rental value per sq ft (psf) per month or higher capital value per sq ft, noted Ms Jacqueline Wong, who heads Jones Lang LaSalle's residential division.For now, the fall in rents looks set to continue and even gather pace.
Urban Redevelopment Authority (URA) data shows private home rents fell 8.5 per cent in the first quarter - the largest quarterly fall since the fourth quarter of 1998. Rents for non-landed prime homes fell the most, by 10.3 per cent.CBRE Research expects rents to stay on a downtrend for the year.
It sees a 3 to 5 per cent fall per quarter till year-end, which would add up to a full-year decline of 15 to 20 per cent.If you are thinking of buying a newly completed unit for rental income, remember there are now fewer expatriates and smaller budgets, but plenty of supply.
Many new developments were bought by investors or speculators. 'Speculators are turning to the rental market to cushion their debt obligations while they wait for prices to improve,' Mr Tan said.
One property investor, who declined to be named, advised: 'If you're buying a resale home for rent, you should try to buy in at a 5 per cent rental yield so you will have, say, a 4 per cent yield when the rental contract ends and has to be renewed at a lower rent.'
This is because leases typically run for two years and rents take a while to catch up. For those still keen on buying to let, Ms Wong's advice is to go for areas popular with expatriates, and be aware of the supply, both existing and upcoming.
Homes in prime districts continue to enjoy stable yields as expats still prefer these areas, she said, adding that projects in such areas posted an average rental yield of 3.5 to 3.7 per cent in the first quarter.
Still, posh homes in prime areas do not command the highest psf rents. First-quarter URA data shows median rents at Icon in Tanjong Pagar and Strata in the Novena area came to $6 psf and $5.11 psf respectively.
In contrast, the newly completed, upscale St Regis Residences commanded just $4.80 psf. Ardmore Park, a coveted property, went for $5.42 psf, down from $6.15 psf in the previous quarter.
'The rental rates for Strata and Icon may seem high, but most of the units are 45 to 100 sq m, whereas those at St Regis Residences and Four Seasons Park are 210 to 300 sq m, so the absolute quantum is smaller,' said CBRE Research.
Rentals are a function of location, unit size, age, condition, quality and other factors. And generally, yields from luxury homes tend to be lower because of their high prices, experts said.
At St Regis Residences and Four Seasons Park, prices range from $1,700 to $2,100 psf, so yields would come to 2.8 to 3.4 per cent, lower than those at Icon, said CBRE Research.
Ms Wong noted that mid-tier projects with smaller units would have higher psf rental values than luxury market projects, as they would still be affordable. Such mid-tier projects would appeal to a middle management expat with a budget of $3,000 to $6,000 a month, she added.
For example, at $5.08 psf a month, a 689 sq ft one-bedder at The Sail @ Marina Bay would cost him $3,500 a month. At $4.83 psf a month, a 1,100 sq ft two-bedder at the swankier Cosmopolitan might appear cheaper at first, but he would have to fork out $5,300 for the larger unit.
All things being equal, 99-year leasehold properties enjoy higher rental yields than freehold ones as they usually cost less. A property's tenure - freehold or leasehold - does not affect the rental value as much as it does the price, experts said.
Location is key, said Ms Wong, so look for a property that is more lettable - one in a prime area or near an MRT station. 'The capital values of such properties will also hold better.'
Rents for ground floor shops in Orchard Rd hold up
May 25, 2009 - The Business Times
Kalpana Rashiwala
(SINGAPORE) The heat is on for Orchard Road retail rents with declining retail sales and substantial new supply completing soon, but Cushman and Wakefield says opportunistic retailers entering the final stages of negotiations for limited remaining choice ground-floor spots in new malls have kept demand for prime retail space firm in the first six weeks of this quarter.
The average monthly rental value for prime street-level retail space on Orchard Road dipped 1.1 per cent in the six weeks between end-Q1 2009 and mid-Q2 2009, lower than the 4.6 per cent quarter-on-quarter contraction seen in Q1 2009.
'Demand for retail space fell into a state of paralysis in Q4 2008 and early 2009 as the global economy was clouded under the tint of uncertainty. However, retailers have now moved into a state of acceptance and we are seeing more leases under negotiation,' says Cushman's associate director of retail consulting and leasing Turner Canning.
Cushman's average monthly rental value for prime ground floor Orchard Road retail space stood at $36.50 per square foot (psf) as at May 15, down 1.1 per cent from $36.90 psf as at end-March 2009. The latest mid-Q2 2009 figure represents a fall of 5.7 per cent since end-2008.
'While there is short-term resilience in prime retail rents, our forecast calls for a decline of a further 5-10 per cent in Orchard prime ground floor retail rentals through to the end of the year because of the generally weak retail outlook,' said Cushman's director of research Ang Choon Beng.
According to Knight Frank figures, ION Orchard, Orchard Central, 313@Somerset and Mandarin Gallery are among the new malls that will add a total 1.8 million square feet of net retail space in Singapore's prime Orchard Road shopping belt from now till mid-2010, a whopping 40 per cent increase from the current stock of 4.5 million sq ft.
Knight Frank managing director Danny Yeo, a veteran in the retail property consultancy sector, noted that despite the pressure from all the new shop space on Orchard Road, rents for ground floor space will probably hold up better than on the upper floors as the number of street-level units facing Orchard Road are limited in supply, whereas the supply on upper floors will be more substantial. 'So the rental drop on upper floors will be more severe than for ground floor space,' he added.
Cushman's Mr Canning reckons that upper floor shop space for new and existing malls on Orchard Road could today be fetching monthly rents of about $20-25 psf, lower than around $25-35 psf a year ago.
Knight Frank's Mr Yeo says it is difficult to quantify decreases in retail rents as traditionally measured on a fixed monthly psf basis. 'Increasingly, we're seeing more leases on a mix comprising slightly lower fixed rentals but also including a percentage of sales. This model cushions tenants when business is not on a level they want and enables them to tide over lean times, but once the market turns around, their total rental bill could be higher as retail sales pick up.'
CB Richard Ellis director (retail services) Letty Lee observes that retailers are increasingly being challenged by the economic downturn which is driving down tourist numbers.
'Coupled with the H1N1 virus, retailers face the prospect of not being able to achieve their projected turnover. The increase in supply is another challenge. Particularly for existing retailers, they will have to brace themselves for fresh competition, fresh concepts and malls incorporating new and different retail experiences,' she added.
Mr Yeo reckons that generally, retail sales at suburban malls have fared better than on Orchard Road over the past six to nine months. Retail turnover of suburban malls may have fallen by 5-15 per cent on average over this period, 'with the impact being a little bit more on fashion retailers than others such as those in groceries and F&B'.
'As for retailers along Orchard Road, for those relying heavily on tourists and big-ticket items, I wouldn't be surprised if their sales drop has been about 15-20 per cent on average over the past six to nine months, although a few may even have experienced a more substantial drop of 20-40 per cent.'
Kalpana Rashiwala
(SINGAPORE) The heat is on for Orchard Road retail rents with declining retail sales and substantial new supply completing soon, but Cushman and Wakefield says opportunistic retailers entering the final stages of negotiations for limited remaining choice ground-floor spots in new malls have kept demand for prime retail space firm in the first six weeks of this quarter.
The average monthly rental value for prime street-level retail space on Orchard Road dipped 1.1 per cent in the six weeks between end-Q1 2009 and mid-Q2 2009, lower than the 4.6 per cent quarter-on-quarter contraction seen in Q1 2009.
'Demand for retail space fell into a state of paralysis in Q4 2008 and early 2009 as the global economy was clouded under the tint of uncertainty. However, retailers have now moved into a state of acceptance and we are seeing more leases under negotiation,' says Cushman's associate director of retail consulting and leasing Turner Canning.
Cushman's average monthly rental value for prime ground floor Orchard Road retail space stood at $36.50 per square foot (psf) as at May 15, down 1.1 per cent from $36.90 psf as at end-March 2009. The latest mid-Q2 2009 figure represents a fall of 5.7 per cent since end-2008.
'While there is short-term resilience in prime retail rents, our forecast calls for a decline of a further 5-10 per cent in Orchard prime ground floor retail rentals through to the end of the year because of the generally weak retail outlook,' said Cushman's director of research Ang Choon Beng.
According to Knight Frank figures, ION Orchard, Orchard Central, 313@Somerset and Mandarin Gallery are among the new malls that will add a total 1.8 million square feet of net retail space in Singapore's prime Orchard Road shopping belt from now till mid-2010, a whopping 40 per cent increase from the current stock of 4.5 million sq ft.
Knight Frank managing director Danny Yeo, a veteran in the retail property consultancy sector, noted that despite the pressure from all the new shop space on Orchard Road, rents for ground floor space will probably hold up better than on the upper floors as the number of street-level units facing Orchard Road are limited in supply, whereas the supply on upper floors will be more substantial. 'So the rental drop on upper floors will be more severe than for ground floor space,' he added.
Cushman's Mr Canning reckons that upper floor shop space for new and existing malls on Orchard Road could today be fetching monthly rents of about $20-25 psf, lower than around $25-35 psf a year ago.
Knight Frank's Mr Yeo says it is difficult to quantify decreases in retail rents as traditionally measured on a fixed monthly psf basis. 'Increasingly, we're seeing more leases on a mix comprising slightly lower fixed rentals but also including a percentage of sales. This model cushions tenants when business is not on a level they want and enables them to tide over lean times, but once the market turns around, their total rental bill could be higher as retail sales pick up.'
CB Richard Ellis director (retail services) Letty Lee observes that retailers are increasingly being challenged by the economic downturn which is driving down tourist numbers.
'Coupled with the H1N1 virus, retailers face the prospect of not being able to achieve their projected turnover. The increase in supply is another challenge. Particularly for existing retailers, they will have to brace themselves for fresh competition, fresh concepts and malls incorporating new and different retail experiences,' she added.
Mr Yeo reckons that generally, retail sales at suburban malls have fared better than on Orchard Road over the past six to nine months. Retail turnover of suburban malls may have fallen by 5-15 per cent on average over this period, 'with the impact being a little bit more on fashion retailers than others such as those in groceries and F&B'.
'As for retailers along Orchard Road, for those relying heavily on tourists and big-ticket items, I wouldn't be surprised if their sales drop has been about 15-20 per cent on average over the past six to nine months, although a few may even have experienced a more substantial drop of 20-40 per cent.'
Gillman Heights sale finally completed
May 24, 2009 - The Business Times
Uma Shankari
THE $548 million sale of Gillman Heights Condominium to Ankerite Pte Ltd, a subsidiary of CapitaLand, was completed yesterday, the developer said in a statement. Ankerite will redevelop the site into a condominium with about 1,000 apartments.
The sale was not completed by the previous deadline of May 15, leading to some speculation that the collective sale might be off. But lawyers for the buyers and sellers quickly clarified that they were looking at the new deadline of May 22 instead.
The sale of the 99-year-leasehold estate on Alexandra Road dragged on for two years since the deal was first inked in 2007. The sale of Gillman Heights finally got the go-ahead this February after the Court of Appeal dismissed a last-ditch plea by minority owners to overturn the deal.
But last week, last-minute hurdles emerged.
One sticking point was the transfer of $750,000 from the management corporation's (MCST) management fund to the sinking fund in August 2007 and March 2008, which was discovered during the due diligence exercise.
The lawyers for the buyers wanted the transfer reversed. That issue, and a separate suit by a local contractor against the MCST, were both eventually resolved - clearing the way for the sale to go through.
Earlier reports had indicated that owners of the estate's 607 units stood to receive between $870,000 and $950,000 for their apartments.
Uma Shankari
THE $548 million sale of Gillman Heights Condominium to Ankerite Pte Ltd, a subsidiary of CapitaLand, was completed yesterday, the developer said in a statement. Ankerite will redevelop the site into a condominium with about 1,000 apartments.
The sale was not completed by the previous deadline of May 15, leading to some speculation that the collective sale might be off. But lawyers for the buyers and sellers quickly clarified that they were looking at the new deadline of May 22 instead.
The sale of the 99-year-leasehold estate on Alexandra Road dragged on for two years since the deal was first inked in 2007. The sale of Gillman Heights finally got the go-ahead this February after the Court of Appeal dismissed a last-ditch plea by minority owners to overturn the deal.
But last week, last-minute hurdles emerged.
One sticking point was the transfer of $750,000 from the management corporation's (MCST) management fund to the sinking fund in August 2007 and March 2008, which was discovered during the due diligence exercise.
The lawyers for the buyers wanted the transfer reversed. That issue, and a separate suit by a local contractor against the MCST, were both eventually resolved - clearing the way for the sale to go through.
Earlier reports had indicated that owners of the estate's 607 units stood to receive between $870,000 and $950,000 for their apartments.
Ferrell puts 80 RiverGate units back on market
May 24, 2009 - The Business Times
Emilyn Yap
FERRELL Asset Management, which counts Indonesia's Lippo Group as one of its investors, has put around 80 apartments at the RiverGate back on the market for sale, BT understands.
According to agents, a private preview began a few days ago and around 30 to 40 units have been taken up. The 545-unit freehold condominium in the Robertson Quay area received Temporary Occupation Permit in March, and was a joint development between CapitaLand and Hwa Hong Corporation.
The apartments on sale are spread over several floors and comprise three-bedders, four-bedders and penthouses. They are selling at $1,450 - $1,550 psf, one source said. Prices of lower-level units may even start from $1,380 psf.
According to Urban Redevelopment Authority data on caveats lodged, recent transactions of RiverGate units took place between $1,150 - $1,470 psf.
The seller of the apartments is believed to be fund manager Ferrell Asset Management. One of its funds, the Ferrell Premier Real Estate Investment Fund, had paid over $180 million for 100 units in 2005, bought in two separate tranches of 80 and 20 units.
Previous reports did not mention the per-square-foot price of the fund's units. When RiverGate was first launched in 2005, units were priced at $1,080 psf on average. That subsequently rose to $1,600 psf in the final phase of release in 2006.
Ferrell Premier Real Estate Investment Fund's website states that the fund invests in the 'high-yielding sector' of Singapore's property market.
'The objective of this sub-fund is to achieve returns of 10 - 15 per cent per annum through investments in properties with medium to long-term capital appreciation potential.'
BT understands that associates of Knight Frank and DTZ are marketing the units. Savills could also be marketing the units.
Emilyn Yap
FERRELL Asset Management, which counts Indonesia's Lippo Group as one of its investors, has put around 80 apartments at the RiverGate back on the market for sale, BT understands.
According to agents, a private preview began a few days ago and around 30 to 40 units have been taken up. The 545-unit freehold condominium in the Robertson Quay area received Temporary Occupation Permit in March, and was a joint development between CapitaLand and Hwa Hong Corporation.
The apartments on sale are spread over several floors and comprise three-bedders, four-bedders and penthouses. They are selling at $1,450 - $1,550 psf, one source said. Prices of lower-level units may even start from $1,380 psf.
According to Urban Redevelopment Authority data on caveats lodged, recent transactions of RiverGate units took place between $1,150 - $1,470 psf.
The seller of the apartments is believed to be fund manager Ferrell Asset Management. One of its funds, the Ferrell Premier Real Estate Investment Fund, had paid over $180 million for 100 units in 2005, bought in two separate tranches of 80 and 20 units.
Previous reports did not mention the per-square-foot price of the fund's units. When RiverGate was first launched in 2005, units were priced at $1,080 psf on average. That subsequently rose to $1,600 psf in the final phase of release in 2006.
Ferrell Premier Real Estate Investment Fund's website states that the fund invests in the 'high-yielding sector' of Singapore's property market.
'The objective of this sub-fund is to achieve returns of 10 - 15 per cent per annum through investments in properties with medium to long-term capital appreciation potential.'
BT understands that associates of Knight Frank and DTZ are marketing the units. Savills could also be marketing the units.
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