(Abstract from TodayOnline 7th Nov, 2009 by Tan Hui Leng)
SINGAPORE - It has come a month earlier this year than usual, in what seems a clear move to tackle concerns about the property market's exuberance. On Friday, the Government released details of its Land Sales programme for the first half of next year, signalling a potential addition of 10,550 private homes - the most since the programme began in 2001.
The much-anticipated reinstatement of the Confirmed List - a list suspended a year ago as the recession bit - saw eight residential sites identified to be put up for tender in the first four months. These could yield 2,925 units, just short of the high at the peak of the property boom in 2007.
"Since people say there's some anxiety about housing supply and so on ... it's better to tell people (now) that there's going to be adequate housing supply," said the Urban Redevelopment Authority's senior group director (land sales and administration) Choy Chan Pong.
On the Reserve List - for sites whose tender will only be triggered if there is a minimum bid - are 16 residential sites and two mixed-used sites that could include residential units.
All 26 sites in the programme will be outside the Core Central Region, to increase the supply of more affordable private housing, said Mr Choy. Four of the Confirmed List sites are new - at Buangkok, Lakeside, Simei and Upper Serangoon. Their selection is based on national development plans: For instance, the Lakeside area will be developed as part of the Jurong Lake District.
Analysts believe this injection of new units could put a lid on private home prices, which in the third quarter grew 15.8 per cent - the steepest on-quarter rise since 1981.
"It's the intention of the Government to make sure that property prices don't run away," said Knight Frank's Peter Ow.
Cushman and Wakefield Singapore's Donald Han expects more developers from China and Hong Kong to join the fray, as the high-end markets here have not peaked price-wise.
As of the third quarter, there were some 59,700 units in the pipeline, not including the 2,010 units from the Reserve List sites sold this year.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Saturday, November 7, 2009
Bubble brewing?
(Abstract from TodayOnline 7th Nov, 2009 by Colin Tan)
WITH the recent release of third-quarter real estate data, it may be timely to ask: Is there a real estate bubble, and if so, how bad is it? When the figures were unveiled in the last week of October, private-housing prices were out-of-sync with the rest of the market. Prices and rents were down for the other major sectors - office, retail and industrial. These trends were in line with current economic conditions.
Private-housing prices rebounded sharply by 15.8 per cent, easily the highest quarterly rise in more than 25 years. This is aggravated by the decline of housing rentals. Prices dropped by 2.2 per cent despite the third quarter traditionally being the best in terms of number of leases closed, as this is when many expatriates return from their holidays and sign new rental contracts.
Although the overall housing rental trend is down, rentals in some areas have improved and recorded increases in August and September. These increases could partly be due to the large number of expatriates signing new leases in the third quarter. Overseas managerial staff from the integrated resorts would also have signed on during this period.
Rents will go up for some developments due to competition. There are also signs that some tenants are moving to smaller units. This may also lead to rises in some unit types but declines for others.
In the third quarter, 921 units were added to the total number of vacant housing units or a growth of 6.6 per cent, as 3,666 units were completed during the quarter - the highest quarterly figure in more than a decade. The last time the market saw any significant growth was in the first quarter of last year, when the number of vacant units grew by 1,728 units or 13.2 per cent.
The number of units completing in the final quarter and next year may not be big - 1,805 for the fourth quarter and 5,737 for the whole of 2010. But the pressure resumes, with 11,667 in 2011 and 12,991 in 2012.
Owner occupiers or investors?
The Singapore private-housing market has traditionally been anchored by owner-occupier purchases, giving stability to prices.
But in 2007 and 2009, the proportion of investors rose significantly. There is no formal information on the actual percentage of investors but a small sample of about 33 cases show investor-purchases at 87.8 per cent of the total, showing an increased downward pressure on housing rentals in the future.
Judging from land prices, which have increased by more than 30 per cent based on the winning bids from five triggered Government sites, housing prices can be expected to rise.
The latest announcement that the Government intends to launch eight housing sites from the confirmed list in the first four months of next year is timely as it helps to increase supply. With ample liquidity and the low cost of funds in the market, it will be awhile before prices begin to drop.
For those still contemplating investing in the property market, recognise the activity for what it is - a high risk, high gain play. It is never a low-risk, high-gain activity. ¢
The writer is the head of research and consultancy at Chesterton Suntec International. The opinions expressed here are his own.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
WITH the recent release of third-quarter real estate data, it may be timely to ask: Is there a real estate bubble, and if so, how bad is it? When the figures were unveiled in the last week of October, private-housing prices were out-of-sync with the rest of the market. Prices and rents were down for the other major sectors - office, retail and industrial. These trends were in line with current economic conditions.
Private-housing prices rebounded sharply by 15.8 per cent, easily the highest quarterly rise in more than 25 years. This is aggravated by the decline of housing rentals. Prices dropped by 2.2 per cent despite the third quarter traditionally being the best in terms of number of leases closed, as this is when many expatriates return from their holidays and sign new rental contracts.
Although the overall housing rental trend is down, rentals in some areas have improved and recorded increases in August and September. These increases could partly be due to the large number of expatriates signing new leases in the third quarter. Overseas managerial staff from the integrated resorts would also have signed on during this period.
Rents will go up for some developments due to competition. There are also signs that some tenants are moving to smaller units. This may also lead to rises in some unit types but declines for others.
In the third quarter, 921 units were added to the total number of vacant housing units or a growth of 6.6 per cent, as 3,666 units were completed during the quarter - the highest quarterly figure in more than a decade. The last time the market saw any significant growth was in the first quarter of last year, when the number of vacant units grew by 1,728 units or 13.2 per cent.
The number of units completing in the final quarter and next year may not be big - 1,805 for the fourth quarter and 5,737 for the whole of 2010. But the pressure resumes, with 11,667 in 2011 and 12,991 in 2012.
Owner occupiers or investors?
The Singapore private-housing market has traditionally been anchored by owner-occupier purchases, giving stability to prices.
But in 2007 and 2009, the proportion of investors rose significantly. There is no formal information on the actual percentage of investors but a small sample of about 33 cases show investor-purchases at 87.8 per cent of the total, showing an increased downward pressure on housing rentals in the future.
Judging from land prices, which have increased by more than 30 per cent based on the winning bids from five triggered Government sites, housing prices can be expected to rise.
The latest announcement that the Government intends to launch eight housing sites from the confirmed list in the first four months of next year is timely as it helps to increase supply. With ample liquidity and the low cost of funds in the market, it will be awhile before prices begin to drop.
For those still contemplating investing in the property market, recognise the activity for what it is - a high risk, high gain play. It is never a low-risk, high-gain activity. ¢
The writer is the head of research and consultancy at Chesterton Suntec International. The opinions expressed here are his own.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Cheung Kong is top bidder for Upper Thomson Rd condo plot
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings.
This was confirmed yesterday by Raymond Chui, general manager of the group's Singapore-based unit Property Enterprises Development.
Cheung Kong unit Treasure Well Investments' bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) - the highest seen for a private housing site at a state land tender this year.
Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. 'We'll probably develop around 340 to 350 units,' he added.
Treasure Well's top bid was 21.5 per cent above the next highest offer, which was made by Singapore's Far East Organization.
When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: 'We've done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.'
The Upper Thomson Road site is located opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.
That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.
The project will comprise fairly regular-sized units. 'Our showflat is not yet ready,' he added.
Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.
Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings.
This was confirmed yesterday by Raymond Chui, general manager of the group's Singapore-based unit Property Enterprises Development.
Cheung Kong unit Treasure Well Investments' bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) - the highest seen for a private housing site at a state land tender this year.
Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. 'We'll probably develop around 340 to 350 units,' he added.
Treasure Well's top bid was 21.5 per cent above the next highest offer, which was made by Singapore's Far East Organization.
When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: 'We've done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.'
The Upper Thomson Road site is located opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.
That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.
The project will comprise fairly regular-sized units. 'Our showflat is not yet ready,' he added.
Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.
Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Govt to offer slew of sites for homes
Eight confirmed sites and as many as 26 to allay fears of shortage
(Abstract from The Strait Times 7th Nov, 2009 by Joyce Teo)
THE Government acted ahead of schedule yesterday in following through on its pledge to release plenty of land sites to meet strong demand for mass market homes outside the city centre.
In the first half of next year, at least eight residential sites - and as many as 26 sites - will be offered to developers.
The move is being seen as a bid to allay fears of a shortage of these homes - often bought by HDB upgraders - which may have sent prices surging.
The 26 sites could produce 10,550 private homes - the highest number from any half-yearly government land sales since the second half of 2001, said the Urban Redevelopment Authority (URA).
In an announcement that came a few weeks earlier than usual, the Government said it would put eight residential sites, including two executive condominium (EC) sites, on the confirmed list. This is where sites are put up for sale regardless of developers' prior expressions of interest.
These sites could boast about 2,925 new homes, close to the boom time 3,000 in the second half of 2007.
'There's some anxiety about housing supply, so its better to tell people that there will be adequate supply,' said URA senior group director of land sales and administration Choy Chan Pong.
'The private residential market has seen very strong demand in the past eight months, so we want to ensure there is enough supply to meet demand, so that prices can move more in sync with economic fundamentals,' he said.
To calm the market, National Development Minister Mah Bow Tan, in mid-September, flagged the move to reinstate the confirmed list after it was suspended for about a year.
Sales of new private homes this year are now above 12,828 units and could hit 2007's record of 14,811 units. Developers have thus been bidding for land at much higher than expected prices.
The high-end homes market has not fully recovered, but mass market prices are now similar to levels seen in the previous boom, sparking fears of runaway mass market prices, experts said.
'The programme will ensure the property market stays stable and price increases are kept to moderate levels,' said Knight Frank's executive director of residential, Mr Peter Ow.
Aggressive bids by developers could also become a thing of the past.
The Government is trying to calm panicky buyers as well as developers who have been tendering for sites at record prices, said Cushman & Wakefield managing director Donald Han.
Of the 26 sites for residential use on the land sales programme, 10 are new sites, not rolled out previously.
In January, the Government will push out three confirmed sites, including a new EC site in Buangkok Drive.
The five EC sites, one new, will mean the largest EC supply since 2000.
'Putting two ECs on the confirmed list reflects the Government's concern about the widening gap between HDB resale prices and private housing prices,' said DTZ head of South-east Asia research Chua Chor Hoon.
Two of the 26 residential sites are mixed-use, whereby private homes can be built. Another 16 are on the reserve list, whereby sites are offered for sale after a developer commits to a minimum bid.
Two confirmed list sites near MRT stations - in Pheng Geck Avenue and Simei Street 3 - are very attractive, and could fetch $400 to $500 per sq ft of gross floor area, Mr Ow estimated.
Units on the sites may then sell for close to $1,000 psf, he added.
On the reserve list, the sites likely to be triggered for tender are in Bishan Street14, Bartley Road and Stirling Road, said CBRE Research.
In all, 42 sites are available for sale in the first half of next year, comprising 24 purely residential sites, two mixed use sites that must include residential use, five commercial sites, 10 hotel sites and one site permitting a range of uses.
joyceteo@sph.com.sg
(Abstract from The Strait Times 7th Nov, 2009 by Joyce Teo)
THE Government acted ahead of schedule yesterday in following through on its pledge to release plenty of land sites to meet strong demand for mass market homes outside the city centre.
In the first half of next year, at least eight residential sites - and as many as 26 sites - will be offered to developers.
The move is being seen as a bid to allay fears of a shortage of these homes - often bought by HDB upgraders - which may have sent prices surging.
The 26 sites could produce 10,550 private homes - the highest number from any half-yearly government land sales since the second half of 2001, said the Urban Redevelopment Authority (URA).
In an announcement that came a few weeks earlier than usual, the Government said it would put eight residential sites, including two executive condominium (EC) sites, on the confirmed list. This is where sites are put up for sale regardless of developers' prior expressions of interest.
These sites could boast about 2,925 new homes, close to the boom time 3,000 in the second half of 2007.
'There's some anxiety about housing supply, so its better to tell people that there will be adequate supply,' said URA senior group director of land sales and administration Choy Chan Pong.
'The private residential market has seen very strong demand in the past eight months, so we want to ensure there is enough supply to meet demand, so that prices can move more in sync with economic fundamentals,' he said.
To calm the market, National Development Minister Mah Bow Tan, in mid-September, flagged the move to reinstate the confirmed list after it was suspended for about a year.
Sales of new private homes this year are now above 12,828 units and could hit 2007's record of 14,811 units. Developers have thus been bidding for land at much higher than expected prices.
The high-end homes market has not fully recovered, but mass market prices are now similar to levels seen in the previous boom, sparking fears of runaway mass market prices, experts said.
'The programme will ensure the property market stays stable and price increases are kept to moderate levels,' said Knight Frank's executive director of residential, Mr Peter Ow.
Aggressive bids by developers could also become a thing of the past.
The Government is trying to calm panicky buyers as well as developers who have been tendering for sites at record prices, said Cushman & Wakefield managing director Donald Han.
Of the 26 sites for residential use on the land sales programme, 10 are new sites, not rolled out previously.
In January, the Government will push out three confirmed sites, including a new EC site in Buangkok Drive.
The five EC sites, one new, will mean the largest EC supply since 2000.
'Putting two ECs on the confirmed list reflects the Government's concern about the widening gap between HDB resale prices and private housing prices,' said DTZ head of South-east Asia research Chua Chor Hoon.
Two of the 26 residential sites are mixed-use, whereby private homes can be built. Another 16 are on the reserve list, whereby sites are offered for sale after a developer commits to a minimum bid.
Two confirmed list sites near MRT stations - in Pheng Geck Avenue and Simei Street 3 - are very attractive, and could fetch $400 to $500 per sq ft of gross floor area, Mr Ow estimated.
Units on the sites may then sell for close to $1,000 psf, he added.
On the reserve list, the sites likely to be triggered for tender are in Bishan Street14, Bartley Road and Stirling Road, said CBRE Research.
In all, 42 sites are available for sale in the first half of next year, comprising 24 purely residential sites, two mixed use sites that must include residential use, five commercial sites, 10 hotel sites and one site permitting a range of uses.
joyceteo@sph.com.sg
Buffet-table spread of sites for developers
But the jury is out on whether the govt's release of plots will tame land bids, which have soared wildly at state tenders
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE government is offering developers a platter of residential sites through the confirmed and reserve lists for the next half - including several plots in the vicinities of hot-selling condo launches this year, such as Caspian near Jurong Lake and Alexis near Queenstown MRT Station.
However, the jury is out on how much this will tame land bids, which have soared wildly at recent state tenders.
Four of the eight sites on the confirmed list and at least four reserve list sites are near MRT stations - but there are also many sites not in the vicinity of train stations where more affordable private housing could be built.
A few plots are close to the city while the majority are in typical suburban locations where private condos catering to HDB upgraders are located.
Peter Ow, Knight Frank executive director (residential), said: 'The government's main message is that it is taking care of the upgraders' market. The current release is to tackle and try to moderate prices in the upgraders market which concerns most Singaporeans.'
For new private homes, prices in the mass-market segment have surpassed their 2007 peak levels; whereas for high-end homes, prices have yet to recover to their 2007-highs, he added.
'Thus, there are no sites in the Core Central Region, which includes the prime districts. The government recognises the fact that not all sectors of the residential market are doing well, especially high-end homes.'
Chua Chor Hoon, DTZ's South-east Asia research head, said that with so many choices, developers are unlikely to put in aggressive land bids in future tenders.
Leonard Tay, CB Richard Ellis director (research), said that the latest supply may moderate slightly some of the exuberance at recent state tenders but prime sites near MRT stations would still be well contested and developers may put in a premium.
Putting the latest supply numbers in perspective, Knight Frank chairman Tan Tiong Cheng suggested that the 2,925 private homes that can be developed on the eight confirmed list plots for H1 2010 would not significantly bring down land bids as the reintroduction of supply on this list is long overdue after an absence of one year.
'So it's more like catching up. Plus, there's no alternative supply of mass market sites from the private sector through collective sales, for instance,' he added.
Of the 10 new housing sites on the latest confirmed and reserve lists, Knight Frank's Mr Ow picks out the confirmed list plot next to Potong Pasir MRT Station, which can yield about 150 private homes, and the reserve list site at Stirling Road near Queenstown MRT Station as the ones likely to fetch the highest bids - about $500 per square foot per plot ratio (psf ppr) and above $500 psf ppr respectively, because of their proximity to the city.
DTZ's Ms Chua pointed out that the Stirling Road site, which can be be turned into a condo with about 405 units, is quite near the CBD and very close to HDB flats. A new condo on the site would generate demand from both owner occupiers and investors. 'There's good rental demand for Queens and Anchorage condos nearby,' she said.
Agreeing, Mr Ow said that the Stirling plot, with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area) could probably be built up to 40 storeys, in line with Queens condo just in front of it as well as HDB blocks in the Dawson estate nearby.
Property consultants said that other new sites that are likely to be popular include plots near Simei and Lakeside MRT stations as well as a plot in Pasir Ris near Downtown East and Pasir Ris Park.
The land parcel near Lakeside MRT Station, which is under the confirmed list, can produce some 525 private homes. It is next to Caspian, which sold like hot cakes in February and helped revive private homes sales after last year's global financial crash. Another plot on the confirmed list, diagonally opposite Simei MRT, can produce 250 units. It is also near UOL Group's Double Bay Residences which was released this year. The confirmed list site at Pheng Geck Avenue near Potong Pasir MRT is close to another 2009 hot seller, 8@Woodleigh.
Among the new reserve list sites, the Stirling Road plot is in the vicinity of Alexis condo, which was also among the earlier hot projects this year.
The Ministry of National Development has also injected two plots in Hougang into the latest reserve list - one at Hougang Avenue 2 designated for a low-rise development near Rosyth School, and the other, at Hougang Avenue 7.
Another new reserve list plot is at Miltonia Close in Yishun, next to The Shaughnessy, a completed condo. It may be far from town and not next to an MRT station but a new low-rise development on the site will be attractively located, next to Orchid Golf Course and near Lower Seletar Reservoir.
Developers more familiar with the Eunos area may consider a plot at Foo Kim Lin Road which can generate about 535 units. It is a new plot on the reserve list.
'Developers now have a whole buffet-table spread of sites to choose from,' summed up CBRE's Mr Tay.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE government is offering developers a platter of residential sites through the confirmed and reserve lists for the next half - including several plots in the vicinities of hot-selling condo launches this year, such as Caspian near Jurong Lake and Alexis near Queenstown MRT Station.
However, the jury is out on how much this will tame land bids, which have soared wildly at recent state tenders.
Four of the eight sites on the confirmed list and at least four reserve list sites are near MRT stations - but there are also many sites not in the vicinity of train stations where more affordable private housing could be built.
A few plots are close to the city while the majority are in typical suburban locations where private condos catering to HDB upgraders are located.
Peter Ow, Knight Frank executive director (residential), said: 'The government's main message is that it is taking care of the upgraders' market. The current release is to tackle and try to moderate prices in the upgraders market which concerns most Singaporeans.'
For new private homes, prices in the mass-market segment have surpassed their 2007 peak levels; whereas for high-end homes, prices have yet to recover to their 2007-highs, he added.
'Thus, there are no sites in the Core Central Region, which includes the prime districts. The government recognises the fact that not all sectors of the residential market are doing well, especially high-end homes.'
Chua Chor Hoon, DTZ's South-east Asia research head, said that with so many choices, developers are unlikely to put in aggressive land bids in future tenders.
Leonard Tay, CB Richard Ellis director (research), said that the latest supply may moderate slightly some of the exuberance at recent state tenders but prime sites near MRT stations would still be well contested and developers may put in a premium.
Putting the latest supply numbers in perspective, Knight Frank chairman Tan Tiong Cheng suggested that the 2,925 private homes that can be developed on the eight confirmed list plots for H1 2010 would not significantly bring down land bids as the reintroduction of supply on this list is long overdue after an absence of one year.
'So it's more like catching up. Plus, there's no alternative supply of mass market sites from the private sector through collective sales, for instance,' he added.
Of the 10 new housing sites on the latest confirmed and reserve lists, Knight Frank's Mr Ow picks out the confirmed list plot next to Potong Pasir MRT Station, which can yield about 150 private homes, and the reserve list site at Stirling Road near Queenstown MRT Station as the ones likely to fetch the highest bids - about $500 per square foot per plot ratio (psf ppr) and above $500 psf ppr respectively, because of their proximity to the city.
DTZ's Ms Chua pointed out that the Stirling Road site, which can be be turned into a condo with about 405 units, is quite near the CBD and very close to HDB flats. A new condo on the site would generate demand from both owner occupiers and investors. 'There's good rental demand for Queens and Anchorage condos nearby,' she said.
Agreeing, Mr Ow said that the Stirling plot, with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area) could probably be built up to 40 storeys, in line with Queens condo just in front of it as well as HDB blocks in the Dawson estate nearby.
Property consultants said that other new sites that are likely to be popular include plots near Simei and Lakeside MRT stations as well as a plot in Pasir Ris near Downtown East and Pasir Ris Park.
The land parcel near Lakeside MRT Station, which is under the confirmed list, can produce some 525 private homes. It is next to Caspian, which sold like hot cakes in February and helped revive private homes sales after last year's global financial crash. Another plot on the confirmed list, diagonally opposite Simei MRT, can produce 250 units. It is also near UOL Group's Double Bay Residences which was released this year. The confirmed list site at Pheng Geck Avenue near Potong Pasir MRT is close to another 2009 hot seller, 8@Woodleigh.
Among the new reserve list sites, the Stirling Road plot is in the vicinity of Alexis condo, which was also among the earlier hot projects this year.
The Ministry of National Development has also injected two plots in Hougang into the latest reserve list - one at Hougang Avenue 2 designated for a low-rise development near Rosyth School, and the other, at Hougang Avenue 7.
Another new reserve list plot is at Miltonia Close in Yishun, next to The Shaughnessy, a completed condo. It may be far from town and not next to an MRT station but a new low-rise development on the site will be attractively located, next to Orchid Golf Course and near Lower Seletar Reservoir.
Developers more familiar with the Eunos area may consider a plot at Foo Kim Lin Road which can generate about 535 units. It is a new plot on the reserve list.
'Developers now have a whole buffet-table spread of sites to choose from,' summed up CBRE's Mr Tay.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Govt turns up supply tap to cool property fever
10 new sites signal intent to keep home prices affordable
(Abstract from Business Times 7th Nov, 2009 by Emilyn Yap)
THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.
The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.
'The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,' observed DTZ South-east Asia research head Chua Chor Hoon.
The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.
The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.
The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.
The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.
These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.
MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.
With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.
Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.
Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.
'There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,' the Real Estate Developers' Association of Singapore (Redas) said. 'We believe that there is adequate supply of housing in the pipeline to meet future demand.'
As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.
MND typically releases details on the GLS programme in December. Yesterday's announcement came weeks earlier than expected.
According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.
'Since people say there is some anxiety about housing supply, it's better to tell people now,' he explained.
Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a 'don't panic' signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because 'the longer the wait, the higher is the pent-up demand and the potential premium pricing,', he said.
MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.
The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.
'The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,' URA's Mr Choy said.
The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
(Abstract from Business Times 7th Nov, 2009 by Emilyn Yap)
THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.
The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.
'The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,' observed DTZ South-east Asia research head Chua Chor Hoon.
The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.
The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.
The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.
The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.
These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.
MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.
With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.
Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.
Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.
'There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,' the Real Estate Developers' Association of Singapore (Redas) said. 'We believe that there is adequate supply of housing in the pipeline to meet future demand.'
As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.
MND typically releases details on the GLS programme in December. Yesterday's announcement came weeks earlier than expected.
According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.
'Since people say there is some anxiety about housing supply, it's better to tell people now,' he explained.
Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a 'don't panic' signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because 'the longer the wait, the higher is the pent-up demand and the potential premium pricing,', he said.
MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.
The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.
'The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,' URA's Mr Choy said.
The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
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