Housing sales help boost UOL profits by 44%

(Abstract from Straits Times 16th Nov, 2009)

UNITED Overseas Land (UOL) reported that profits for the third quarter ended Sept 30 rose 44 per cent to $105.6 million due to the strong take-up for new residential launches - Meadows@Peirce and Double Bay Residences.

These two projects have sold a combined 937 units to date, the group said last week.

The bottom line was helped by a higher contribution from associated companies, including United Industrial Corporation in which UOL has raised its stake to 32 per cent.

Revenue jumped 21 per cent to $323.9 million with revenue being progressively recognised

from development properties. In addition to Meadows@Peirce and Double Bay Residences, other properties included Duchess Residences, Southbank and The Regency at Tiong Bahru.

Revenue from property development contributed about two-thirds of total revenue. Other sources of revenue included hotel operations and property investments.

UOL group chief executive Gwee Lian Kheng said: 'We are pleased with our third-quarter results. Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs. Moving forward, we can also expect a more stable growth in the Singapore residential market with the reinstatement of the confirmed list of Government Land Sales Programme.'

He added: 'In spite of the challenging office and retail markets in Singapore, we managed to maintain higher occupancy and rental rates for most of our investment properties.

'As the economy recovers, the worst may be over in general for the hospitality industry and we are hopeful of seeing an improvement in the medium term.'

Earnings per share for the quarter rose from 9.24 cents last year to 13.32 cents.

Net tangible asset per share rose to $5.11 as of Sept 30, up from $4.22 as of Dec 31, while gearing improved to 0.39.

UOL shares ended unchanged at $3.29 last Friday, with one million shares changing hands.



UOL's revenue rose 21 per cent, helped by strong take-up for new residential launches such as Meadows@Peirce (above) and Double Bay Residences. -- ST FILE PHOTO

Effects of cooling measures felt

Nomura remains bearish on property sector in Singap0re

(Abstract from TodayOnline 16th Nov, 2009 by Tan Hui Leng)

SINGAPORE - Recent cooling measures, coupled with a continued decline in rents, are likely to weigh on property stocks.

Japan-based investment banking and brokerage group Nomura said in a research note released last Friday that it has maintained a "bearish" stance on the property sector here.

Recently, the Government put in a series of measures to curb speculation in the over-heating property market. This includes the removal of interest absorption schemes. This will likely prompt "a reassessment of asset price expectations as yields fall", said analysts Tony Darwell and Sai Min Chow.

"With pre-sale take-up likely to slip, risks remain for a rebuild in unsold inventory and a resultant correction in asset prices," the Nomura analysts said.

Property prices rose about 16 per cent on-quarter in the third quarter but rents fell as much as by 12 per cent on-quarter. This has resulted in a 50 to 35 basis points on-quarter contraction in property yields. One basis point is equal to 0.01 per cent.

"Higher vacancy amid weak leasing demand (evident in recent rental trends) is likely to place further pressure on yields, potentially compromising the sustainability of current asset price," said the analysts.

Despite the signs, Singapore developers "continue to price in over-optimistic expectations for the physical market".

The analysts noted that unsold pre-sale inventory has rebounded to 9,215 at the end of the third quarter this year - up from 8,637 at end of the second quarter.

"With increased stock availability, we believe price expectations will be reassessed, leading to a slowdown in pre-sale take-up rates, evident in recent new launches," said Nomura.

"With developer stocks' price performance highly correlated to volumes, the listed developers look exposed."

Nomura projects a "W-shaped" recovery in the residential property sector and it projects asset prices to correct by 10 to 15 per cent.

However, CIMB analyst Donald Chua is less bearish on the sector despite the Monetary Authority of Singapore raising caution over potential risks of exuberance in the sector in its latest Financial Stability Review.

But he said the "euphoria" in the property market has already abated following the announcement of sentiment-cooling measures two months ago.

CIMB is also comforted by positive trends in the strong household balance sheets and outstanding housing loans by loan-to-value. It maintains an Overweight rating in the sector as it sees the next phase of re-rating for property shares coming from a recovery in the real economy.

The October data on private residential developer sales is expected to be released by the Urban Redevelopment Authority today.

Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved

Foreign buyer's Sentosa Cove deal falls short‏

(Abstract from Business Times 16th Nov, 2009 by Uma Shankari)

One of his two adjoining plots was resold at same price, other up for grabs

A FOREIGN investor who bought two adjoining bungalow plots on Sentosa Cove in 2008 did not complete the transactions, it has emerged.

Sentosa Cove has since re-sold one of the plots to a local buyer at the same price that the foreign investor had offered for it - $1,688 per square foot (psf) of land. But the other land parcel is still up for sale.

The plot that was re-sold has a land area of about 9,700 sq ft, which means that the total amount paid for the site is about $16.4 million.

The land parcel was first put on the market in March 2008, and sold at the end of that year through a private treaty. But after the foreign investor, who is understood to be a Chinese national, did not make payment according to schedule, the plot was put on the market again. It was sold to the local buyer about two months ago.

Sentosa Cove's general manager Jason Yeo said that the fact that the plot was re-sold for the same price as in 2008 shows that the fundamentals of the residential enclave on Sentosa island are intact.

His firm, which handles State land sales at Sentosa Cove, received offers to buy the property at lower prices. But he held on to it until someone offered the right price.

However, the second plot, which is slightly bigger, has not yet received an offer deemed to be acceptable. The parcel, which is around 12,000 sq ft, was sold for about $1,650 psf to the foreign investor. The total quantum works out to around $19.8 million.

'There has been interest from the market for the site, but they are not able to meet our reserve price,' said Mr Yeo. Sentosa Cove is not aggressively marketing the site, he said.

The land parcel is the only one to remain unsold in the entire Sentosa Cove residential precinct, which will have 8,000 residents by the time all homes there are completed by 2014.

Mr Yeo said that all earlier land transactions - including condominium sites sold to developers as well as landed plots sold to individuals and investors - have been completed. Work on the island is progressing well and some 3,000 residents will be living on the island by the end of this year, he added.

Sentosa Cove has also found takers for some of the commercial space on the island. Two tenants - 7-Eleven, which will open a convenience store with a new-to-Singapore concept, and a launderette - have taken up about 30 per cent of the commercial space available at the arrival area of the Sentosa Cove residential enclave. The arrival plaza has a total lettable area of about 10,000 sq ft.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

Developer sales down 29% m/m in Oct

(Abstract from Business Times 16th Nov,2009 by Kalpana Rashiwala)

SINGAPORE - Developers sold 811 private homes in October this year, down 29 per cent from the 1,143 units they sold in the preceding month.

The latest October number was the lowest figure since the rebound in home sales started in February this year.

Latest figures released by Urban Redevelopment Authority also showed that developers launched a total 566 private homes in October, a nearly 60 per cent contraction from the preceding month.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

Better value for older homes

Nov 16, 2009 - PropertyGuru.com.sg

While the local property market plunged in late 2008 along with the global economy, home values have since bounced back to its normal level. Since the second quarter of this year, a larger number of interested home buyers have lined up outside the showrooms of new condominium launches.

Property developers have responded quickly by pushing their launches to attract potential home buyers despite the high-prices. Houses in the heartlands are being sold higher than those in prime districts 9, 10 and 11. The 99-year leasehold Centro Residences at Ang Mo Kio was sold quickly at a starting price of $1,150 per square foot (psf).

“We have been seeing a bottom-up recovery in Singapore’s property market since February. Buying was initially driven by HDB upgraders who benefited from resilient HDB prices and price-cutting by developers. Subsequently, buying spilled over to the mid-end segment, with local and foreign investors returning to the market,” said Foo Sze Ming, an investment analyst from OCBC Investment Research.

The improvement in the property market was fuelled by the increased demand from home buyers who postponed their purchases last year, the recovery of the economy, high consumer liquidity, low interest rates and the possible en-bloc sellers who cashed out two years ago.

While the fast recovery of the property market must be applauded, home prices have driven up too quickly to a level that experts agree is unsustainable. CB Richard Ellis’ analysis showed that the price quantum of non-landed homes between Q1 and Q2 this year have increased by 28 percent. Between Q2 and Q3, prices escalated 11 percent from $825,000 to $916,000 for apartments ranging from 400 square feet to 700 square feet.

“In the first quarter, most of the new freehold homes sold were shoebox-sized units in mid- to high-end projects like 
Alexis, Newton Edge, Parc Sophia, RV Suites and The Mercury at a median price of $1,000 psf to $1,200 psf. In the second quarter, a significant proportion were larger family-sized suburban projects like I Residences, The Arte and Versilia On Haig, which reflected a median price of $830 psf to $925 psf,” explained Joseph Tan, executive director of CB Richard Ellis.

The buying pattern for the property market shows that recession fears are over. The latest figures from the Urban Redevelopment Authority (URA) indicates a total of 2,767 sold private houses in July, showing a 52 percent jump from 1,826 units in June.

By the end of September, Viva sold 203 units at $1,537psf, Volari @ Balmoral sold 82 units at $2,059 psf and Sophia Residences sold 210 units at $1,590 psf. As developers push their prices, the resistance from home buyers sets in. “There appears to be a small upward trend. While the number of transactions declined, those that went through achieved slightly higher prices,” said Colin Tan, the international director for research consultancy firm Chesterton Suntec.

Sentosa Cove deal not completed

Nov 16, 2009

A foreign investor who purchased two adjoining bungalow sites located at the Sentosa Cove in 2008 did not complete the transactions.

One of the plots has been re-sold by Sentosa Cove to a local buyer at $1,688 per sq ft (psf) of land – the same price that the foreign investor proposed. However, the other parcel of land is still available for sale.

The re-sold plot has about 9,700 sq ft of land area, which means the total amount paid for the site was $16.4 million.

The parcel of land was initially put on the market in March 2008, and it was sold through a private treaty by the end of that year. However, after the Chinese investor failed to meet the payment obligation on schedule, the plot was again put on the market. About two months ago, it was sold to a local buyer.

"Having the plot sold again at a similar price as in 2008 means that the fundamentals of the residential enclave on the island of Sentosa still remain intact," said Jason Yeo, general manager of Sentosa Cove.

His firm, which manages State land sales at Sentosa Cove received offers to purchase the site at lower prices. However, he held on to the price until a buyer proposed the right price.

On the other hand, the second plot, which is larger in size, has not yet received an acceptable offer. The land parcel, with about 12,000 sq ft of land area, was sold to the foreign investor for about $1,650 psf. The total quantum works out to be approximately $19.8 million.

“There has been interest from the market for the site, but the parties are not able to meet our reserve price,” Mr. Yeo said.

The land is the only remaining unsold site in the entire residential precinct of Sentosa Cove, which will have 8,000 residents when all the homes in the area are finished by 2014.

According to Mr. Yeo, all earlier land deals, which includes the landed plots sold to investors and individuals as well as condominium sites sold to developers, have been completed. He added that work on Sentosa Cove is progressing well and around 3,000 residents will be residing on the island by the end of 2009.

ST : Private home sales slow

Nov 16, 2009
Private home sales slow

PROPERTY developers sold just 811 units of new, private homes in October.

This is down from 1,143 units in September and 1,805 units in August, according to figures released by the Urban Redevelopment Authority on Monday.

One of the best sellers was the 278-unit Cyan in Bukit Timah Road. It launched 90 units, of which 81 were sold at a median price of $1,821 per sq ft.

In October, developers launched only 566 units,a far cry from the 1,413 units launched a month earlier.

ST : 2 Punggol BTO projects

Nov 16, 2009
2 Punggol BTO projects

THE Housing Board has launched two new Build-To-Order (BTO) projects in Punggol Town - Punggol Sails and Punggol Ripples, which will offer a total of 1,078 standard flats.

The supply comprises 130 units of studio Apartments, 436 units of three-room, 403 four-room units and 109 five-room flats. Applications for the new flats can be submitted online from Nov 16 to 30.

With effect from this BTO exercise, 95 per cent of the supply of two to five -room flats will be set aside for first timers. This will give greater priority to first timers, who generally have more urgent housing needs than second timers, said HDB in a statement on Monday.

To ensure that public housing is affordable for first-time homebuyers, HDB said the flats are priced below their equivalent market prices, taking into account the prices of resale flats in the area, adjusted for factors such as location, flat attributes, project design and prevailing market conditions, as determined by professional valuers.

The selling prices for the flats range from $65,000 to $92,000 for a studio apartment; $158,000 to $185,000 for a three-room flat; $249,000 to $305,000 for a four-room flat; and $332,000 to $377,000 for a five-room unit.

Conveniently located along Punggol Field, both projects will be well served by the Punggol MRT, LRT stations, bus interchange, and the future Punggol Town Centre. There are also primary and secondary schools in the area. The Tampines Expressway is a short drive away, offering good connectivity to the rest of Singapore.

Including this exercise, HDB has offered about 10,800 flats under BTO and other sales exercises this year. Flat buyers can look forward to four more BTO projects in Bukit Panjang, Sembawang and Dawson with 2,700 flats in December.



Punggol Ripples. -- PHOTO: HDB

Foreign buyers venture out

Nov 15, 2009
Foreign buyers venture out
By Joyce Teo


FOREIGN property investors are spreading their wings and venturing out of the traditional prime areas to snap up homes in other parts of the island.

A new study has found overseas buyers have become keen on districts 11, 22 and most surprising of all, 12, which is the Balestier area.

A Savills Singapore study found that districts 9, 10 and 15 have remained the top spots for foreign buyers over the past three years.

District 9 includes the Orchard and River Valley areas; 15 covers Katong, Joo Chiat and Amber Road and 10 includes the posh Ardmore area, Bukit Timah, Holland Road and Tanglin neighbourhoods. Districts 11 and 22 have become more popular thanks to the higher number of launches there, Savills said.

In the past three years, there have been at least 30 major launches in district 11 alone, including Viva, Park Infinia at Wee Nam and Miro at Lincoln Road. District 22 - it is centered on Jurong - has hosted launches of The Centris, Caspian and The Lakeshore.

Savills said district 12 - which includes the Balestier, Serangoon and Toa Payoh areas - has emerged as one of the top new choices among foreigners this year. Its new projects include The Arte, Trevista, Vista Residences, Nova 48, Nova 88 and Domus.




Savills said district 12 - which includes the Balestier (pictured), Serangoon and Toa Payoh areas - has emerged as one of the top new choices among foreigners this year. -- ST PHOTO