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