Residential Market News Extract - 29 June 2012

Prices of suburban condos above 506 sq ft most resilient

Prices of completed apartments above 506 sq ft in the Non-Central Region or suburban areas have been the most resilient year to date (up to May) followed by small units islandwide. Big apartments in the Central Region have fared the worst, show data from NUS.

Based on NUS's Singapore Residential Price Index (SRPI) series, which tracks prices of completed apartments and condos, the sub-index for the Non-Central Region (excluding small units) rose 1.9 per cent between December last year and May this year.

Over the same period, the sub-index for small units (up to 506 sq ft) islandwide dipped 0.1 per cent, while the sub-index for the Central Region (excluding small units) slipped an even bigger 2 per cent. Central Region is defined as Districts 1-4 (which include the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11.

The pattern is similar to trends in the past two years. In 2011, the Non-Central Region sub-index (excluding small units) rose 11.3 per cent, higher than a 10.6 per cent increase for small units islandwide and 5.1 per cent hike for Central Region (excluding small units)

In 2010, the three indices posted gains of 14.9 per cent, 13.8 per cent and 7.7 per cent respectively.

In suburban locations, because developers have been launching new projects at prices higher than those of existing, completed projects in the vicinity, it has an effect on prices of the completed properties as well.

In addition to owner occupiers, there is demand for completed suburban apartments from investors. Many younger expats on smaller housing budgets are opting to lease suburban condos and even HDB flats.

Source: Business Times – 29 June 2012

 

Pheng Geck site draws 13 bids, led by $114.8m offer

 

Home-grown construction group Santarli yesterday emerged as top bidder for a 99-year private condo site at Pheng Geck Avenue.

The site near Potong Pasir MRT Station drew a whopping 13 bids. Analysts say this reflects developers' confidence in a choice city-fringe site near an MRT station.

The top bid from Santarli Corporation - at $114.8 million or $628.22 per square foot per plot ratio (psf ppr) - was at the upper end of expectations. Santarli's bid came in $1.05 million or 0.9 per cent above the next highest offer of $622.47 psf ppr by Overseas Union Enterprise (OUE) unit OUE Reef Development.

Santarli executive director Chan Thiam Seng told BT yesterday that the group's breakeven cost will be slightly above $1,000 psf and it is looking at an average selling price of about $1,300 psf for its proposed project, which it hopes to launch in about nine months. Santarli's scheme involves an 18-storey development with about 240 units, comprising mostly two and three-bedroom apartments, although there will also be some one and four-bedders.

The first was sold in June 2010 for about $607 psf ppr to Qingdao Construction, which is developing the plot into Nin Residence. The condo was launched last year and based on caveats data, achieved an average price of about $1,225 psf, although smaller units generally sold at $1,300-1,500 psf.

In August last year, Tuan Sing clinched the site next to the one tendered yesterday for $567 psf ppr.

The higher unit land price achieved at the latest tender will give Tuan Sing greater flexibility in pricing strategy when it launches its project.

Also, there is a fair bit of supply in the area from other projects near MRT stations including unsold units at Eight Riversuites and Bartley Residences as well as a yet to be launched project at Mount Vernon Road.

ERA Realty Network's key executive officer Eugene Lim highlighted that the land opposite the site tendered yesterday is zoned for commercial development, and a shopping centre the size of Nex may be built on it in future.

Source: Business Times – 29 June 2012

 

Faber Drive bungalow up for sale, guide price set at $12.5m

A bungalow at Faber Drive has been put up for sale by expression of interest, with a guide price of $12.5 million. The guide price translates into nearly $1,067 per square foot (psf), based on land area of about 11,719 square feet.

A two-storey bungalow with a build-up of 4,400 sq ft stands on the site. It also has a swimming pool.

One sector of the residential market which is quite resilient is the landed properties such as small bungalows, semi-detached, and terrace houses, as they are the dream homes of many Singaporeans.

The site is within close proximity of The Clementi Mall, Clementi Bus Interchange/ MRT Station, and the National University of Singapore. Its land size is capable of being subdivided into two plots for smaller houses which require a minimum size of 4,305 sq ft.

Source: Business Times – 29 June 2012

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Residential Market News Extract - 26 June 2012

Home hunters still in buying mood

Home hunters have been snapping up units over recent weeks and propping up developer sales amid a market slump, but some consultants expect the June tally to be weaker than last month's.

Buyers have been especially keen on suburban and city fringe projects such as the newly launched Cradels, where 65 units have been sold since its launch last Saturday.

The freehold condominium near Novena MRT station has a total of 125 units costing about $1,500 per sq ft.

A one-bedroom unit of nearly 500 sq ft starts from about $600,000.

Tong Eng Group's Tropika East, which launched on June 9, has sold 59 of its 105 units, with 14 moved in the past two weeks.

Three-bedroom units are priced from about $1.3 million.

The 376-unit Sea Esta in Pasir Ris has sold about 250 units since its preview on June 10.

One-bedroom units of 517 sq ft or more are available from $488,000. Three-bedroom units of at least 904 sq ft start from $760,000.

Qingjian Realty has sold more than 250 units out of the 410 released at its River Isles in Punggol. The 610-unit condominium, launched on June 2, is priced from $830 psf to $850 psf.

Far East Organization has sold 27 units over the past week across its projects, with Seahill and Seastrand the top performers.

Sales also held up in the luxury sector. Aurum Land's 1919 at Mount Sophia has sold out its 75 units since the June 9 launch.

Units cost at least $1.12 million, and were sold for $2,000 psf to $2,200 psf.

Mass market sales have been quite good because the pricing is in line with neighbouring launches in those areas, a factor for good sales. June sales are expected to dip 5 per cent to 10 per cent from last month, due to the lack of big launches.

Weak sentiment stemming from Europe's debt crisis and faltering stock markets have also affected buyers.

Source: The Straits Times – 26 June 2012

Six Woodlands blocks to be replaced under Sers

More than 400 households, businesses and hawker stalls will be affected by the latest relocation exercise to be carried out by the Housing Board.

The six blocks on Woodlands Centre Road is the 78th site to be picked under the Selective En Bloc Redevelopment Scheme, which offers new flats with fresh 99-year leases to affected residents.

HDB said the move will affect 147 households, a majority of which occupy three-room flats.

The six blocks - 1A to 6A - were completed between 1980 and 1986. The 190 replacement flats on Woodlands Drive 70 - a 10-minute drive away - will offer two-, three-, four- and five-room options, and be ready by 2016.

HDB said these flats will be opposite the Admiralty MRT station and a shopping complex.

There will also be a wide range of amenities such as shops and eateries, as well as a wet market and schools.

Under the scheme, residents will get compensation for their flats pegged to prevailing market value. They are also assured of a replacement unit at a 20 per cent price discount.

They will be given priority if they choose to go for Build-to-Order launches.

Eligible shop tenants will be given $60,000 and a 10 per cent rental discount if they bid successfully for other HDB rental shops.

Smaller businesses will be given a relocation grant of $30,000 if they are able to find another location and move out by 2016.

Some 78 hawker stalls in the estate will also have to make way. Those who wish to continue their trade will be allocated new stalls at the replacement site.

To ensure there are enough cooked food stalls in the area, the National Environment Agency will build a replacement hawker centre in Woodlands town.

Source: The Straits Times – 26 June 2012

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Residential Market News Extract - 25 June 2012

Several big bungalow deals done of late

Several big-ticket bungalow deals have been transacted recently - both in the Good Class Bungalow (GCB) market on mainland Singapore and at Sentosa Cove.

An old two-storey freehold bungalow at White House Park changed hands recently at $24.8 million, which translates to nearly $1,650 per square foot (psf) on freehold land area of about 15,036 sq ft.

At Jervois Hill, two vacant plots have been transacted in the past few months.

The more recent deal, at $21 million, is for a plot of 15,095 sq ft. Word in the market is that the unit land price of $1,391 psf is low for the area because there is an electrical substation on the site.

The sellers bought the property for $19 million in 2010 from Vincent Tan Kim Yong, group chairman and chief executive officer of Advanced Integrated Manufacturing Corp, which is listed on Singapore Exchange.

In February this year, Dr Tan was also granted an option for the sale of one of his other plots on the street for $32 million or $2,118 psf.

If that transaction is completed, it will set a new record for a Good Class Bungalow Area, surpassing the $2,081 psf achieved in July last year for 6 Chatsworth Road, diagonally opposite the Indonesian Embassy.

Over in the upscale waterfront housing locale of Sentosa Cove, an ocean-fronting bungalow along Cove Drive changed hands last month for nearly $22.2 million, which works out to around $2,787 psf on land of 7,963 sq ft.

It is understood that a few bungalow deals are brewing on Treasure Island, and at higher prices than the $1,766 psf fetched for a transaction about two months ago.

That deal, which involved a bungalow sitting on land of 8,496 sq ft, sold for $15 million.

As for Sentosa Cove, while there have been a lot of viewings including by Chinese investors, there have not been many transactions.

The 10 per cent ABSD payable by foreigners who are not Singapore permanent residents (PRs) on any residential property purchase in Singapore is probably the main deterrent.

Source: Business Times – 23 June 2012

Westvale Condo sold en bloc for $77.5m to Roxy Pacific unit

Freehold residential property Westvale Condominium has been sold to RL West Pte Ltd, a subsidiary of Roxy Pacific Holdings Ltd, for $77.5 million, or about $883 per square foot per plot ratio (psf ppr).

The 62,710 sq ft site, located along Pasir Panjang Road, comprises 32 apartments located in a four-storey walk-up block.

The plot is zoned for residential use under Master Plan 2008, with a gross plot ratio of 1.4, a maximum building height of five storeys, and a potential gross floor area of up to 87,798 sq ft.

With the collective sale, each individual owner will receive gross sale proceeds ranging from approximately $2.2 million to $3.1 million, a more than 50 per cent premium over the current market price.

A development charge for the plot is expected to be incurred should the new developer decide to utilise the additional balcony space, which constitutes another 10 per cent of gross floor area. This charge would amount to $625,000.

The development could yield 115 new homes with an average size of 800 sq ft.

Source: Business Times – 23 June 2012

Fewer tenants + Sky-high prices = Lower rental yields

Sky-high prices and a plentiful supply of stock have driven rental yields of private homes down to levels not seen for almost 12 years.

Overall gross yields were just 3.8 per cent in March, unchanged from December, according to property research firm.

Apart from a one-off dip last September, when yields hit 3.7 per cent, rental returns have not been this low since December 2000.

Levels vary across the island. While some mass-market projects are enjoying higher than average yields of 5 per cent or more, there are some inner-city apartment blocks with returns of only 1.9 per cent.

Especially in view of the expected slowdown in bringing in foreigners, a higher supply of completed units leads to a higher level of competition over a limited pool of tenants. This might result in a fall in rental rates if rental demand stays the same or dips.

But other experts say that while gross yields have been falling, net yields have remained fairly stable as interest rates are at record lows.

They add that while rental demand is expected to remain healthy this year, yields might come under pressure in 2014 and 2015 when a record number of homes are due for completion.

High-end flat market also faces competition from older landed homes.

Citing the increasing number of HDB flats meeting minimum occupation periods and the surge of private completions, there is a possibility of an oversupply.

The higher-yielding properties are mostly 99-year leasehold projects in mass market districts where capital values are lower.

For instance, there are still a handful of mass market properties that yield 5 per cent and above, such as The Madeira in Bukit Batok, and Lakeholmz and Lakepoint Condominium, both in Jurong West.

City centre projects posted the poorest yields, likely because larger firms have imposed cost-cutting measures that have included putting expatriates on local packages, which has dampened demand for expensive rental homes.

Source: The Straits Times – 23 June 2012

Condo buzz shifts to Jurong and Lakeside

The wait for new condominiums in Jurong and Lakeside will soon be over, with several new projects on the cards.

It has been a long time coming. The area has not had a condominium launch in more than a year, while suburbs across the island have been abuzz with construction.

That will change in the coming months, as the whole Jurong Lake District is primed to be the biggest commercial hub outside the city centre.

Last month, the tender closed for a residential site in Boon Lay Way that can yield about 600 units.

The 99-year-leasehold site is a short walk from the Jurong East MRT station.

Another site, which can host over 820 units, is due to be launched for sale later this year.

The plot is near Lakeside MRT station, one stop from Jurong East on the East-West line.

In all, over 2,000 new private homes are expected to be built in the Jurong and Lakeside areas by 2017, consultants estimated.

Despite Jurong being an established town, newer centres like Punggol, Sengkang and Pasir Ris have stolen a march on it when it comes to new executive and private condominium launches, noted Mr Alan Cheong, Savills Singapore research head.

But higher prices have been achieved in Jurong. Upcoming condos there command nearly $1,000 to $1,200 per square foot (psf), while those in the north-east and Pasir Ris are between $850 and $1,000 psf.

The Jurong Lake District is being engineered into a regional hub. Human density is expected to rise, with increasing population of foreigners probably wanting to rent there as more commercial developments take root.

Source: The Straits Times – 23 June 2012

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Residential Market News Extract - 22 June 2012

Only 6 bids for Farrer Drive reserve list site

A smallish private housing plot at Farrer Drive has attracted just six bids, though the top bid of $1,048.52 per square foot per plot ratio (psf ppr) from a Singapore Land unit marks a new high for 99-year private housing land offered at a state tender in recent years.

When the Urban Redevelopment Authority announced on May 11 that the reserve list site had been triggered for release following a successful application from an unnamed party with a commitment to bid at least $823.33 psf ppr, analysts forecast 10-20 bids, given the site's proximity to Farrer Road MRT Station and the relatively manageable investment quantum.

One of the property consultants then polled by BT predicted a top bid of up to $1,100 psf ppr. Three others forecast winning bids of $850-950 psf ppr, $930 psf ppr and $1,000 psf ppr.

Despite the site's District 10 address, most developers who carefully examined the site and its terrain decided to give it a miss. One of them told BT: "The configuration is awkward; it has an irregular, elongated shape with a narrow road frontage. There's also an electrical substation next door and an eight-storey height control; it tends to be inward-looking.

SingLand's proposed scheme for the Farrer project will comprise some 100 units, mostly two-bedders of about 1,000 sq ft, with some smaller units (primarily one-bedders with a study). The project will have basement carparking and "good quality" specifications.

"Units on the sixth, seventh and eighth floors will have beautiful views of the Botanic Gardens. And the development will be close to Farrer Road MRT Station and amenities like HDB shops," he added.

The project could be launched in the first half of 2013. "We'll target singles, couples as well as investors; the development should appeal to expat tenants," he added. Older freehold condos with mostly larger apartments in the Holland-Farrer Road vicinity are selling at about $1,500-2,000 psf, he notes.

BT understands that SingLand's breakeven cost could be around $1,600 psf and it could be looking at an average selling price of about $1,800 psf.

However, analysts also point to substantial unsold stock in CapitaLand's nearby 99-year project, d'Leedon, which will pose competition and be a pricing constraint on any new development in the area. As at end-May, 503 of the d'Leedon's 1,715 units had been sold. The condo will rise to 36 storeys. Its developers sold 30 units in May at a median price of $1,484 psf, or at a range of $1,432-1,765 psf.

Source: Business Times – 22 June 2012

 

Far East dangles 'club with condo' deal

Buy an apartment and get a free country club term membership worth more than $16,000.

Developer Far East Organization recently dangled this offer to tempt home hunters to buy a unit at the upcoming Seastrand condo.

Property consultants said developers may be using promotional moves like this to clear unsold stock before more homes hit the market, posing more competition.

Far East is offering a nine-year term membership at Seletar Country Club, as well as five-year condo maintenance fee absorption, for those who buy three- or four-bedroom units - the only sizes left.

The membership plus the maintenance fee absorption - worth about $15,000 for five years - translates into a discount of about 3per cent on a $1 million unit.

Earlier, it was reported that Far East is giving a 2 per cent 'celebratory discount' this month for various projects, to mark a sales record. But that cannot be used together with this promotion.

Holding onto unsold stock could be risky, as developers face market changes and competition from new projects, they said.

In this case, Far East might be trying to raise more awareness of Seastrand.

The project may have been overshadowed by other pending condos like Sea Esta and Ripple Bay, launched after Seastrand.

But it is unlikely developers would cut prices if plenty of units have been sold, as this could upset earlier buyers.

Still, 'nothing comes for free', and that developers could have factored the discounts into the pricing.

Such offers could trigger a freebie war among developers, which could end up as a disservice to buyers who might have no use for some of the freebies.

Source: The Straits Times – 22 June 2012

Residential Market News Extract - 21 June 2012

Tanah Merah, Bright Hill sites launched to yield 820 homes

Two residential sites, expected to yield up to 820 housing units, were launched for sale by public tender by the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB) yesterday.

The first site, a 99-year leasehold plot located on Tanah Merah Kechil Road, has a site area of about 150,678.5 square feet and a maximum gross floor area (GFA) of 421,901.8 sq ft. It can house around 415 homes.

ERA Realty's key executive officer, Eugene Lim, expects the site to fetch an estimated bid price of $500-$600 psf ppr, assuming a selling price of $1,000-$1,300 psf, based on current subsales in the locality.

Given its proximity to Tanah Merah MRT station, he expects six to eight bidders for the site.

Tender for the site will close at 12 noon, on July 31.

The second site, a 99-year leasehold plot located at Bright Hill Drive, has a site area of about 144,635.6 sq ft and a maximum GFA of 404,979.7 sq ft. It is expected to yield about 405 homes.

The site could attract three to five bidders, with the winning bid between $580 and $620 psf ppr, which translates to an average selling price of $1,250-$1,300 psf.

With the right orientation, the future condominium development can enjoy the unblocked view of the MacRitchie Reservoir and the neighbouring landed housing estates, such as Adelphi Park Estate, Windsor Estate and Soo Chow Garden.

Said ERA's Mr Lim: "We expect a moderate number of bidders (four to six) for this site, due to the fact that the site is irregular and may pose challenges in terms of design. Bid price may be $550-$600 psf ppr, assuming an eventual selling price of between $1,100 and $1,250 psf."

There could be pent-up demand in the area as there have not been new project launches for many years. Thomson Grand, which is nearer to Bishan, is 100 per cent sold as of April 2012 at a median price of $1,300 psf.

The tender for the site will close at 12 noon on Aug 7.

Source: Business Times – 21 June 2012

 

Big-ticket property deals are bouncing back, and the trend is likely to continue

Investment sales of property - which cover big-ticket transactions - have rebounded to about $6.4 billion in the second quarter as at June 19. Such deals had taken a hit in the first quarter, when the figure dived to $4.8 billion (from $7.9 billion in Q4 2011).

Q2's surge has been fuelled by the residential and office markets, including sales of Tower 15 on Hoe Chiang Road, KeyPoint on Beach Road and strata office units at Burlington Square, Tung Centre and The Adelphi.

Taking into account outstanding state tenders - such as for the private housing sites at Farrer Drive and at Pheng Geck Avenue scheduled to close on June 21 and June 28 respectively - as well as other caveats for various sectors of the property market, the final Q2 investment sales tally could reach about $7 billion. This would take the figure for first-half 2012 to almost $12 billion.

Investment sales are expected to continue apace in the second half, possibly resulting in a full-year total of $21-25 billion. This assumes macro economic conditions improve and that financing continues to be available. Availability of debt is one of the main lifelines to the real estate investment market. Absence of debt will lead to falling investment volumes.

Last year, total investment sales hit $29.6 billion, down slightly from 2010's $31.4 billion.

Investment sales reflect the confidence of major property players in the sector's mid to long-term prospects.

Investment sales in the residential sector so far this quarter have reached $3.6 billion - about $1.1 billion or 46 per cent higher than Q1 2012. A big chunk of this came from GLS sites, amounting to $2.5 billion, up 38 per cent from Q1.

The commercial segment too posted a $914 million or 91 per cent quarter-on-quarter jump to $1.9 billion. However, investment sales of industrial properties fell 32 per cent quarter on quarter to about $766 million.

In the collective sales market, five deals totalling $328.8 million have been inked this quarter as at June 20, down from the six deals at $456.6 million in Q1.

Source: Business Times – 21 June 2012

 

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Residential Market News Extract - 20 June 2012

Buyers return 150 private homes in May

Private home buyers returned 150 units to developers last month at projects such as Sky Habitat, The Tampines Trilliant and Hillsta - the highest number in at least five years.

These units, bought in April, made up 5.7 per cent of the more than 2,600 non-landed homes, including executive condominiums (ECs), sold that month.

Despite the high absolute figure for returns, experts say that in percentage terms, the rate is in line with last year's.

They add that the spike in absolute numbers is largely due to April's robust sales which had buyers snapping up the most number of units in almost three years.

Return rates are defined as returned units as a percentage of total non-landed sales in the previous month.

These rates have remained largely below 6 per cent.

While the 150 returned units represent a five-year high in terms of absolute numbers, the percentage return rate was higher in the earlier part of the year.

For instance, while 52 units were returned in January, that translated to a return rate of 9 per cent. This may have been caused by the tough round of cooling measures unveiled last December.

However, the record is still that set in February 2008; the rate was a staggering 41 per cent, with 127 units returned out of about 310 non-landed units sold, as concerns over the United States economy and choppy stock markets hit sentiment.

Last month, 15 units were returned at Hillsta in Choa Chu Kang's Phoenix Road, 11 units at EC project The Tampines Trilliant and 10 at Sky Habitat in Bishan.

In April, buyers returned 17 units at Riversound Residence in Punggol and nine each at Ripple Bay in Pasir Ris and at EC project Twin Waterfalls in Punggol.

Source: The Straits Times – 20 June 2012

 

S'pore 'resilient to global shocks'

Singapore has a high degree of resilience to global financial shocks, despite its open economy and dependence on global finance and trade, said ratings agency Moody's Investors Service.

But the economy is facing structural challenges with slower growth and changes in the political landscape.

Still, Moody's is keeping a stable outlook on its triple-A rating on Singapore's sovereign credit, citing strengths in its economy, institutions and the Government's financial position.

In its annual credit report on the country released yesterday, Moody's said Singapore excels in four areas: its strong economy, institutions, government finances and low vulnerability to external shocks.

It noted that the economy had rebounded from its recession in 2009 to 14.8 per cent growth in 2010, largely due to a competitive trade sector and flexible labour market.

But Singapore faces a key challenge in raising productivity and innovation as global competition heats up.

The report also noted that liberal immigration policies had helped boost growth in the past 10 years.

But 'rising popular anxiety over the significant increase in the number of foreign workers has prompted the Government' to change its immigration policies.

This will in turn lead to a tighter labour market and contribute to upward pressure on costs, unless productivity measures can help offset the rise.

One area of concern was the country's ability to use monetary policy to keep prices stable, with inflation having moved above 5 per cent recently.

Moody's noted the exchange rate policy did not prevent interbank interest rates from dropping to historic lows, while the high costs of cars is outside the exchange rate's influence.

Demand for housing also remains high even though cooling measures have helped slow price increases.

Moody's has also rated the Government's financial position as being 'very high', despite the move to channel more resources to help lower-income earners.

It said the country's strong balance sheet was backed up by investments made by the Government of Singapore Investment Corp (GIC), which manages more than US$100 billion (S$127 billion) of Singapore's reserves.

The report added that Singapore's financial system remains resilient to shocks, largely due to local banks' healthy balance sheets.

On the domestic front, Moody's said political risks remain low, even though the recent general election, presidential election and Hougang by-election had indicated 'an erosion in support' for the ruling People's Action Party.

Source: The Straits Times – 20 June 2012

Residential Market News Extract - 19 June 2012

Kemaman View sold en bloc for $45.5m

Freehold residential development Kemaman View has been sold to private developer Aylesbury Pte Ltd for $45.5 million, or some $935 per square foot per plot ratio (psf ppr).

The 17,388 sq ft site, located off Balestier Road, comprises 30 apartment units, each 1,324 sq ft in size. Located in District 12, the plot is zoned for Residential Use under Master Plan 2008, with a gross plot ratio of 2.8 and a maximum height of 36 stories subject to approval.

With the collective sale, each individual apartment unit owner will receive gross sale proceeds of about $1.5 million, a 30 per cent premium over the resale price if the unit were sold individually.

The site was launched in the collective sales market in April, with an indicative asking price of $46-48 million.

Development charges for the plot are not expected to be payable, unless the developer obtains approval for an additional 10 per cent gross floor area (GFA) for balconies in addition to a potential GFA of 53,813 sq ft. In this scenario, development charges are estimated to amount to $2.8 million, resulting in a unit land price of $816 psf ppr.

Source: Business Times – 19 June 2012

 

Suburban private home values outpace city prices

Prices of non-landed suburban private homes have outperformed those in the city over the last five years, a new report has found.

Across the board, private home prices have soared more than 50 per cent over the five years.

However, city centre homes have fared the worst, with many posh homes struggling to match robust gains posted by homes on the city fringe and in suburban areas.

The change in prices was taken between the first quarter of 2007 and the first quarter of this year.

The results showed that prices of non-landed homes in suburban areas enjoyed price rises of 68 per cent on average. This was a startling 30 percentage points more than city centre home price rises of 38 per cent, on average.

Driving the point home, the top five price performers in the period were all suburban projects.

And the bottom five were high-end homes, mostly in the prime districts of 9, 10 and 11.

St Regis Residences in Tanglin Road even registered a sharp 16 per cent drop in value and was the worst performer in the period.

While average selling prices were $2,671 per sq ft (psf) in the first three months of 2007, St Regis Residences units were languishing at an average of $2,237 psf five years later.

At the other end of the spectrum, Sherwood Tower within Bukit Timah Plaza led the pack in terms of gains, posting a staggering 175 per cent jump in average prices from $258 psf to $709 psf.

Supply in the high-end segment is limited. The subdued en-bloc market helps limit the supply to just what it is today. The mass market, on the other hand, is being inflated with new supply from the Government Land Sales programme.

But other experts pointed out that if a different period had been selected, the trend would have been reversed with non-landed city centre homes posting some of the strongest price rises instead.

For instance, they enjoyed solid price gains of about 69 per cent in the three-year period from the first quarter of 2005 to the first quarter of 2008.

Prices of city fringe homes jumped 39 per cent while suburban homes trailed with a 38 per cent rise in the same period.

The collective sale market for high-end developments boomed in 2007, lifting city centre prices then while the suburban market was still quiet.

This led to a high-base effect, he added, which when coupled with the lacklustre performance of the market over the past two years, leaves the high-end segment trailing far behind.

Source: The Straits Times – 19 June 2012

 

'More property cooling steps unlikely'

A fragile economic outlook and the soft property market have lessened the risk of new cooling measures, some experts say.

Bank of America Merrill Lynch economist Chua Hak Bin noted last week that despite increased speculation of a sixth round of cooling measures, they are likely to be unwarranted at this point.

But Mr Chua pointed out that the December round of cooling measures has dealt a severe blow to sentiment, with a resulting hit to transactions.

Prices of private homes dipped 0.1 per cent in the first three months of the year compared with a 0.2 per cent gain in the previous quarter, while total value of flats sold plunged 26 per cent in the same period.

Foreign buyers have also retreated. They accounted for 23 per cent of transactions in the first five months of the year - well down from 35 per cent in the same period last year.

'The luxury property market, defined as sales at more than $5 million, has practically collapsed, with the number of transactions falling by some 61 per cent (in the same period),' Mr Chua added.

‘Maintaining the threat of additional property measures is a sensible policy to cool the market, but current conditions probably do not warrant another round.'

Some experts even suggest that some existing measures might be scaled back.

Further measures, if any, could involve capping the percentage of shoebox homes - usually apartments under 500 sq ft - in a development to safeguard the interest of family units, but nothing specifically to dampen buying demand.

Source: The Straits Times – 19 June 2012

Condo - Bartley Residences Updates

Discover The Underlying Potential Of Bartley, The Upcoming Redeveloping Town At City Fringe!

*Refer to attached Straits Times Article*

Current Discount Scheme (For Limited Period!)

 

12% STANDARD DISCOUNT + 3% EARLY BIRD DISCOUNT 

+ 3% STAMP DUTY DISCOUNT + 2% District Discount OR 2% Move Closer Discount 

=> Total 20% Direct Discount!

 

 

CHOICE UNITS AVAILABLE FROM $1,1XX PSF!

*Prices Quoted Are After 20% Discount*

 

1 bedroom from $642,000

2 bedroom from $994,000

2+study from $1,036,000

3 bedroom from $1,229,000

3+study from $1,375,000

4 bedroom from $1,663,000

Dual Key Units FULLY SOLD

Roof Terrace Units from $1,452,000

 

 

Why Bartley Residences?

  

• Unbeatable Accessibility ~ Within 2 mins to Bartley MRT! 

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• Most units enjoy either pool view or garden view or panoramic & unblocked view (surrounding developments mainly low rise) 

• Elevated terrain with lush landscaping and comprehensive facilities 

• Well-fitted apartments with fridge, washer, dryer 

• Shopping Centres within a quick MRT ride away ~ Nex Mall, Heartland Mall, Junction 8, AMK Hub & many more! 

• Good Schools In The Vicinity ~ Maris Stella High School (Within 1 km!) & Paya Lebar Methodist Girls’ School (Primary/ Secondary) 

• International schools nearby bring rental potential ~ Stamford American International School (U/C, Opening in August 2012) & Australian International School 

• The 4.5km-long Bartley-Tampines link viaduct brings further accessibility to the East 

• Well connected by major roads and expressways - KPE, CTE and PIE 

• About 10 to 15 minutes’ drive to CBD and Orchard

 

Call me now @ 9090 1288 for more details / viewing appointment at the showflat!

Residential Market News Extract - 18 June 2012

New private home sales drop 31.8% in May from April's high

New private home sales in May fell to its lowest since the beginning of this year, breaking developers' three-month long streak of over 2,000 units sold monthly, since February.

This is despite private residential launches picking up 2.4 per cent month-on-month, supported by an 85.4 per cent jump in the rest of central region (RCR).

According to Urban Redevelopment Authority (URA) figures, developers sold 1,702 private homes, excluding executive condominiums (ECs) in May, a drop of 31.8 per cent from April's record 2,496 units.

Most consultants concur that the lower sale numbers can be attributed to there being no major launches of commercial-residential projects.

"One reason for the slowdown in launches was that developers were taking time to adapt to the new requirements by the government on more transparency in the disclosure of information in project sales," said Eugene Lim, key executive officer at ERA Realty Network.

The 530-unit Flo Residence in Punggol was the only large project launched in the region, of which a total of 226 units out of the 338 released found buyers. The 60-unit Vibes@Serangoon was fully launched, with 44 units sold; Shiro, a 16-unit landed housing project in Telok Kurau was half sold; and the fully launched 10-unit Shoreline Residences sold four units.

Notably, developers have stepped up launches in the Core Central Region (CCR) and the Rest of the Central Region (RCR).

In the CCR, the total number of launches increased by 36.7 per cent month-on-month to 309 units. Sales activity fell however, down 30.1 per cent to 135 units.

It is possible that CCR sales will see an improvement in H2 2012 since developers are stepping up efforts to dispose of unsold units from completed projects and those that are nearing completion.

The onset of a price decline for non-landed houses in the RCR, albeit slightly by 0.6 per cent quarter-on-quarter in Q1 2012 could have prompted potential buyers to hold back for further price corrections, particularly amid the recent renewed concerns over the sovereign debt issues in the Eurozone.

Preliminary data has also shown that resale has picked up significantly in the RCR.

New projects that were favoured by buyers include Flo Residences (266 units sold at a median price of $863 psf), Seahill (200 units at $1,383 psf) and Eight Riversuites (192 units at $1,340 psf).

Island-wide, the combined effect of increased launches and slower sales pushed take-up rate down to 69.5 per cent, from 104.4 per cent last month.

About 35.1 per cent of the 1,702 private homes sold by developers in May were priced at $1,000psf or less; 49.3 per cent were priced above $1,000psf and at/less than $1,500psf.

On the executive condominium (EC) front, sales ballooned to 355 units, mainly due to the launch of 1 Canberra. The 665-unit EC project was the only one launched in May; 209 units were sold at a median price of $711.

Source: Business Times – 16 June 2012

'Sky Habitat effect' lifts sales in other estates

Increasing numbers of buyers are turning their interest back to some housing projects that seemed to have run out of puff, thanks to what some agents are calling the Sky Habitat effect.

Sky Habitat is the CapitaLand's 509-unit project in Bishan Central that grabbed headlines in mid-April with record high prices of about $1,700 per sq ft (psf).

City fringe and city centre projects with comparable or lower prices now look increasingly attractive while similar suburban estates have also gathered more attention.

While new home sales were buoyant in March and nearly hit a three-year high in April, consultants do say that if a new project is launched at a record price it often creates a ripple effect which lifts both new sales and resales in neighbouring developments.

Though only about 12 units in Rochelle were sold in all of last year, more than 20 were sold in March and April alone at average prices of $1,400 psf - well-below Sky Habitat's pricing.

Similarly, 301-unit My Manhattan, quiet on the sales front for a while, moved about 45 units in the past two months.

Even projects launched shortly after 99-year leasehold Sky Habitat was previewed have recorded robust buyer interest.

For instance, UOL's 244-unit Katong Regency in Paya Lebar, priced at an average of $1,500 to $1,600 psf, was sold out within a few days. It launched four days after Sky Habitat. The mixed-use project built on top of a shopping mall, with its freehold status and city fringe location, looked very attractive in comparison with Sky, experts said.

Source: The Straits Times – 16 June 2012 

Sharp fall in Sentosa Cove home sales

Once a hot spot for well-heeled home hunters, Sentosa Cove seems to have lost a bit of its lustre amid sluggish sales and a general slowdown in the luxury home sector.

Property consultants attribute the change in mood to the lack of new launches on Sentosa, attractive deals elsewhere and foreign buyers being deterred by the additional buyer's stamp duty.

Since the start of last year, there have been about 30 transactions for landed homes on Sentosa, compared with 62 in 2010 alone.

Including non-landed homes, there have been 101 transactions since last year, which pales in comparison with the 203 in 2010.

Potential buyers may also have been distracted by good deals in prime districts 9, 10 and 11.

For instance, the 99-year- leasehold D'Leedon in Farrer Road is selling at an average $1,450 per sq ft to $1,600 psf, compared with Sentosa Cove condominiums which fetch more than $2,000 psf.

According to first-quarter property data from the Urban Redevelopment Authority, 1,559 uncompleted high-end private homes had been sold since last year. In 2010 alone, 3,946 units were sold.

In the next couple of years, about 2,500 upscale private homes are expected to be ready in the area.

But there are still unsold units at various projects. For instance, Seven Palms Sentosa Cove has more than 30 unsold units.

The Green Collection, a 20- unit strata-landed development, has not been launched.

Slow sales aside, prices at Sentosa Cove have held up, even though they dipped briefly during the 2009 recession.

Source: The Straits Times – 16 June 2012

Far East woos buyers with 'special discounts'

Home buyers considering properties by Far East Organization might get to enjoy a small discount as the developer celebrates its solid sales record this year.

It said it is offering celebratory discounts ranging from 1 to 3 per cent for several projects, including euHabitat, this month.

Setting a new sales record of 2,200 units in the first five months of the year gave the company something to cheer about.

Far East sold about 1,500 units in the corresponding period last year and 750 the year before.

New home sales figures for last month released yesterday by the Urban Redevelopment Authority (URA) showed that SeaHill, an upcoming project by Far East, was among the top-selling condos.

Prices there ranged from $1,170 to $1,759 per sq ft (psf).

A check on other Far East properties showed healthy take-up rates as well. For instance, euHabitat at Eunos has sold 681 units, out of the 733 released. The project has 748 units in total. Those sold went for a median price of $1,288 last month.

The Clift, a higher-end project in McCallum Street, has sold 253 units of the 312 available. Units at the condo, completed in 2010, were sold for a median price of $2,720 psf last month.

Property consultants and agents interviewed said property developers have given out such discounts before.

ERA Realty key executive officer Eugene Lim said Far East 'probably exceeded its targets' and wanted to build on the momentum to generate more sales.

'They give the discount as a deal sweetener,' he said, noting that even though the firm has a lot of stock left, it 'did very well'.

He said developers are also conscious of the increased supply that is set to hit the market.

'Most will want to clear their stock before that. There's no need to cut prices because the economy is still doing okay, so they offer incentives instead,' he said.

Source: The Straits Times – 16 June 2012