Residential Market News Extract - 5 June 2012

Residential supply likely to hold firm in H2

The Government Land Sales (GLS) programme for the second half of 2012 is likely to see a sustained pipeline of residential sites, following continued robust take-up by developers.

It is possible that another 28 to 30 new residential sites for the development of close to 14,000 residential units could be added to both the Confirmed and Reserve lists.

Kim Eng analyst, Wilson Liew, suggests that some 6,000 to 6,500 residential units could be rolled out under the Confirmed and Reserve Lists respectively (about 10 per cent below the number of units offered in the H1 2012 GLS) to "partly offset the higher-than-expected actual number of units launched from previous rounds of GLS, as some developers have been pushing out smaller-than-normal units".

Kim Eng's Mr Liew suggests that there may be one to two sites available for residential development at Kallang Riverside.

He says: "Kallang Riverside was planned as a work-live precinct and a growth area under the Master Plan 2008, but compared to Jurong Lake District and even Paya Lebar Central, developments there are slower. Residential sites there should be well sought after due to the location, and could also provide a base for future office/commercial developments in the area."

More hotel sides are also expected to be on the offer as there's a strong appetite for hotel sites in good central locations and near MRT stations. The recent tender at Farrer Park saw hotel land prices crossing $1,000 psf ppr for the first time."

In April, a record top bid of $1,078.81 psf ppr was received for the 99-year leasehold hotel plot above Farrer Park MRT station. This was nearly 2.7 times the $403.65 psf ppr minimum price undertaking given by an unnamed party that successfully applied for the site's release from the Reserve list.

On the other hand, consultants don't expect new commercial site additions.

As the office market is currently weak and there is a pipeline supply from GLS, private, and M+S sites, the H2 GLS supply is likely to be limited.

Source: Business Times – 5 June 2012

Property market shows signs of slowing two recent launches

The property market is taking a breather as home buyers grapple with looming economic uncertainties and possible cooling measures.

New private home sales figures for last month will be out only next week but they are likely to be significantly down from April's numbers, consultants and agents have noted.

Sales for April had been the strongest in nearly three years, with 2,487 units sold, 4 per cent up from March. Including executive condominiums, 2,660 units were snapped up. April sales had been propped up by shoebox apartments, consultants had said.

River Isles in Punggol, for instance, was launched over the weekend, notching up respectable sales numbers, but units have moved less quickly than for some earlier projects, said consultants.

Qingjian Realty, the condo's developer, launched 300 units and sold 150 over the weekend. It has 610 units in total.

The homes are priced at an average of $830 psf to $850 psf.

Between May 28 and June 3, Far East Organization sold 22 units in total across all its properties, including SeaHill along West Coast Link and Hillsta in Choa Chu Kang.

Executive condominium Watercolours surprised consultants with a sluggish take-up rate.

The project at Pasir Ris had gathered much hype after it was two times oversubscribed when it opened for e-application.

But according to industry sources, only up to half of the 416 units there have been sold.

The lack of new launches and the month-long school holidays are also in full swing, leading to the drop in sales.

Source: The Straits Times – 5 June 2012

Sophia Mansions collective sale launched

A collective sale for Sophia Mansions was launched yesterday - the latest in the popular Mount Sophia enclave to face the prospect of redevelopment.

The freehold site has a land area of about 17,545 sq ft and is zoned for residential use. It can be redeveloped into a boutique development of up to six storeys with the option of a basement carpark.

Its potential gross floor area of about 36,840 sq ft could accommodate 35 apartments with an average size of 1,000 sq ft.

Sellers are expecting offers in the region of $42.5 million to $45 million.

The site is near the Dhoby Ghaut MRT interchange station, and shopping centres including Plaza Singapura.

New launches in this area generally see a strong take-up rate.

For example, neighbouring site Parc Sophia is fully sold and Sophia Residence, which is just down the road, is 99 per cent sold.

If successful, each owner of the two-bedroom apartment will pocket an average of $1.92 million to $2.03 million, while owners of the three-bedroom apartments will get an average of $2.56 million to $2.71 million each.

Source: The Straits Times – 5 June 2012