Jun 1, 2010
Pender Court sold for $95m, 2 other sites for sale
PENDER Court, a 48-unit condominium off West Coast Highway, has been sold en bloc for $95 million.
This land price works out to $1,007 per sq ft (psf) on the potential gross floor area. The price is shy of the owners' asking price of $100million to $108 million but is way above the $80 million price negotiated in an ultimately abortive sale in the boom days of July 2007.
Bravo Building Construction called off the sale in early 2008. It had also pulled out of two other collective sale deals.
Owners of the 48 units will get close to $2 million each.
Credo Real Estate, which marketed the site, confirmed only the price and declined to comment further as the sale committee is not yet ready to make a formal announcement.
Meanwhile, Waldorf Mansions off Balestier Road and Foh Pin Mansion in Charlton Road have been put up for collective sale.
Both freehold estates have an indicative price of about $22.5 million each. At the 16-unit Waldorf Mansions, this equates to $709 psf per plot ratio, inclusive of a development charge of $104,000.
Credo Real Estate said the buyer can expect to break even at about $1,100 psf.
Built in the 1990s, the site has an allowed gross floor area of 31,875 sq ft. The buyer can redevelop the site into a project with 50 apartments of 600 sq ft on average, said Credo.
As for the 30-year-old, 21-unit Foh Pin Mansion, it can be redeveloped only into a three-storey mixed landed housing development as the land has been rezoned, said marketing agent Savills Singapore.
The buyer may undertake a cluster housing development, said Savills director of investment sales Suzie Mok.
A price of $21 million or $22 million will translate to a land price of about $610 psf to $650 psf, she said.
The tender for Waldorf Mansions closes on June 29 while the tender for Foh Pin closes a day earlier on June 28.
JOYCE TEO
Tuesday, June 1, 2010
ST : Waterfront, city homes still a hit in resale market
Jun 1, 2010
Waterfront, city homes still a hit in resale market
By Joyce Teo
WATERFRONT and prime city homes continue to be popular choices in the resale market, which could mean more conversions of office space into homes, property consultancy CB Richard Ellis (CBRE) says.
Its latest report says the total value of resale deals for these homes in Districts 1, 2 and 4 - where the Marina Bay, Shenton Way and Sentosa Cove areas are located - hit $470.2 million from January to May.
The 246 units sold in these upmarket districts in the first five months of this year make up 51 per cent of the total for all of last year. Although the value of these deals pales in comparison to the full-year 2007 peak of $2.08 billion for these districts, it compares relatively well with full-year sales of $750.8 million last year and average annual resale values of $737.8 million from 2005 to 2008.
CBRE's executive director for residential properties Joseph Tan said an ongoing, sustained demand for residential units in these areas could prompt developers to convert or redevelop older office blocks into high-end residential use.
One example is the conversion of the Ong Building site at 76 Shenton Way into a 202-unit residential project. This project sold out in March.
CBRE estimates 1.3 million sq ft of offices will be converted to mainly residential use from now to 2013, he said.
Office buildings that have received planning approvals for conversion to residential use include VTB Building, into 148 units; UIC Building, into 593 units; and Marina House, into 155 units.
On new launches, the euro zone crisis has made investors more cautious while the Government's large release of sites for sale could have dampened sentiment among owner-occupiers, says an industry source. He expects transactions and prices to cool to a more sustainable level.
The largest new release over the holiday weekend was the 1,145-unit condominium in Hougang - The Minton.
About 300 units were released, of which some 180 were sold at an average price of $850 per sq ft.
Property experts had reportedly said sales could have been more brisk if the condo had been launched earlier.
Developer Kheng Leong said 5 per cent of the buyers were foreigners, with the rest being locals or permanent residents.
The most popular were the two-bedroom units, it said. They accounted for some 35 per cent of the units purchased at the 99-year leasehold condo.
The one- and three-bedroom units each made up 25 per cent of the sales.
'The one-bedroom units didn't move as fast as the two-bedroom units. It shows that a lot of people are buying units to live in, rather than for investment,' said Knight Frank's managing director for residential services Peter Ow.
One-bedders have been popular with investors as they are deemed affordable.
Waterfront, city homes still a hit in resale market
By Joyce Teo
WATERFRONT and prime city homes continue to be popular choices in the resale market, which could mean more conversions of office space into homes, property consultancy CB Richard Ellis (CBRE) says.
Its latest report says the total value of resale deals for these homes in Districts 1, 2 and 4 - where the Marina Bay, Shenton Way and Sentosa Cove areas are located - hit $470.2 million from January to May.
The 246 units sold in these upmarket districts in the first five months of this year make up 51 per cent of the total for all of last year. Although the value of these deals pales in comparison to the full-year 2007 peak of $2.08 billion for these districts, it compares relatively well with full-year sales of $750.8 million last year and average annual resale values of $737.8 million from 2005 to 2008.
CBRE's executive director for residential properties Joseph Tan said an ongoing, sustained demand for residential units in these areas could prompt developers to convert or redevelop older office blocks into high-end residential use.
One example is the conversion of the Ong Building site at 76 Shenton Way into a 202-unit residential project. This project sold out in March.
CBRE estimates 1.3 million sq ft of offices will be converted to mainly residential use from now to 2013, he said.
Office buildings that have received planning approvals for conversion to residential use include VTB Building, into 148 units; UIC Building, into 593 units; and Marina House, into 155 units.
On new launches, the euro zone crisis has made investors more cautious while the Government's large release of sites for sale could have dampened sentiment among owner-occupiers, says an industry source. He expects transactions and prices to cool to a more sustainable level.
The largest new release over the holiday weekend was the 1,145-unit condominium in Hougang - The Minton.
About 300 units were released, of which some 180 were sold at an average price of $850 per sq ft.
Property experts had reportedly said sales could have been more brisk if the condo had been launched earlier.
Developer Kheng Leong said 5 per cent of the buyers were foreigners, with the rest being locals or permanent residents.
The most popular were the two-bedroom units, it said. They accounted for some 35 per cent of the units purchased at the 99-year leasehold condo.
The one- and three-bedroom units each made up 25 per cent of the sales.
'The one-bedroom units didn't move as fast as the two-bedroom units. It shows that a lot of people are buying units to live in, rather than for investment,' said Knight Frank's managing director for residential services Peter Ow.
One-bedders have been popular with investors as they are deemed affordable.
ST : BOY! What a tough climb to the top
Jun 1, 2010
BOY! What a tough climb to the top
China-born developer, the Businessman of the Year, recalls long, hard struggle
By Gabriel Chen
A BEAMING Mr Zhong Sheng Jian, the founder of leading Chinese property developer Yanlord Land, last night recalled his tough climb to the top as he accepted a major Singapore business award.
Yanlord, which is listed on the Singapore Exchange, has developed a potent brand name that is now synonymous with high-end fully fitted apartments in the booming mainland market.
Last night, the 53-year old China-born entrepreneur, who became a Singapore citizen in the early 1990s, bagged the Businessman of the Year Award at this year's Singapore Business Awards.
'When I was informed about this award, many memories welled up in my mind,' said the father of five in his acceptance speech at the glitzy dinner event at Resorts World Sentosa. 'Visions of the past flashed across my eyes, memories of constantly being on the road, of the numerous destinations, of the different modes of transport, of the uncounted number of hotels I stayed in.'
Small and medium-sized enterprises (SMEs) also received good news yesterday. Deputy Prime Minister Teo Chee Hean said at the ceremony that SMEs will enjoy higher funding rates - 20 per cent more - for the productivity training programmes the Workforce Development Agency is developing with various industry associations.
For the winners last night, the awards - jointly organised by The Business Times and DHL Worldwide Express - affirmed their hard work on the long and often rough road to success.
Mr Zhong said an entrepreneur must be adaptable to succeed in the ever-changing market environment.
He should know what it means to seize opportunities, having capitalised on China's rapid urbanisation to venture into property development 17 years ago.
The Guangdong native launched the venture with funds he had accumulated from other business activities such as importing and trading in raw materials and paper, and from printing and paper-making businesses.
In his successful drive to build homes in China, Mr Zhong was inspired by the advanced property development concepts found in the Singapore property sector.
Instead of churning out the small, empty concrete boxes that passed for flats in China at the time, he decided to offer increasingly affluent city dwellers something better. So in 1993, the newly established Yanlord rolled out one of China's first high-end residential developments in Shanghai.
Mr Zhong played down his achievements, saying: 'Without the rapid reformation of the Chinese economy, I would not be able to achieve what I have today regardless of my personal ability.'
Another Singaporean honoured yesterday was Mr Phupinder Gill, president of the Chicago-based CME Group, the world's largest diverse futures market, who clinched the Outstanding Chief Executive (Overseas) of the Year award.
Mr Gill, 49, is a former relief teacher at Queenstown Secondary School.
He went to Washington State University in the 1980s to pursue a degree in finance and a Master of Business Administration degree. After graduation, he joined CME in 1988 as a clerk. 'I was paid US$5 an hour. This wasn't a lot,' he said.
He worked his way up the organisation, from operations specialist to senior risk analyst and then options manager, and later as president of the clearing house in 1998.
'The best advice I can give is that if you are in the workforce, think big, act big. Work at a company as if you own the firm,' he said.
Also honoured this year were Cerebos Pacific president Eiji Koike, who won the Outstanding Chief Executive award, and International SOS, which won the Enterprise award. The group provides medical assistance, international health care and security services.
gabrielc@sph.com.sg
THE WINNERS (From left) Outstanding Overseas CEO Phupinder Gill; Businessman of the Year Zhong Sheng Jian of Yanlord Land; Enterprise award winners Dr Pascal Rey-Herme, co-founder and group medical director, and Mr Arnaud Vaissie, co-founder, chairman and CEO of International SOS; and CEO of the Year Eiji Koike from Cerebos. -- ST PHOTO:MALCOLM KOH
BOY! What a tough climb to the top
China-born developer, the Businessman of the Year, recalls long, hard struggle
By Gabriel Chen
A BEAMING Mr Zhong Sheng Jian, the founder of leading Chinese property developer Yanlord Land, last night recalled his tough climb to the top as he accepted a major Singapore business award.
Yanlord, which is listed on the Singapore Exchange, has developed a potent brand name that is now synonymous with high-end fully fitted apartments in the booming mainland market.
Last night, the 53-year old China-born entrepreneur, who became a Singapore citizen in the early 1990s, bagged the Businessman of the Year Award at this year's Singapore Business Awards.
'When I was informed about this award, many memories welled up in my mind,' said the father of five in his acceptance speech at the glitzy dinner event at Resorts World Sentosa. 'Visions of the past flashed across my eyes, memories of constantly being on the road, of the numerous destinations, of the different modes of transport, of the uncounted number of hotels I stayed in.'
Small and medium-sized enterprises (SMEs) also received good news yesterday. Deputy Prime Minister Teo Chee Hean said at the ceremony that SMEs will enjoy higher funding rates - 20 per cent more - for the productivity training programmes the Workforce Development Agency is developing with various industry associations.
For the winners last night, the awards - jointly organised by The Business Times and DHL Worldwide Express - affirmed their hard work on the long and often rough road to success.
Mr Zhong said an entrepreneur must be adaptable to succeed in the ever-changing market environment.
He should know what it means to seize opportunities, having capitalised on China's rapid urbanisation to venture into property development 17 years ago.
The Guangdong native launched the venture with funds he had accumulated from other business activities such as importing and trading in raw materials and paper, and from printing and paper-making businesses.
In his successful drive to build homes in China, Mr Zhong was inspired by the advanced property development concepts found in the Singapore property sector.
Instead of churning out the small, empty concrete boxes that passed for flats in China at the time, he decided to offer increasingly affluent city dwellers something better. So in 1993, the newly established Yanlord rolled out one of China's first high-end residential developments in Shanghai.
Mr Zhong played down his achievements, saying: 'Without the rapid reformation of the Chinese economy, I would not be able to achieve what I have today regardless of my personal ability.'
Another Singaporean honoured yesterday was Mr Phupinder Gill, president of the Chicago-based CME Group, the world's largest diverse futures market, who clinched the Outstanding Chief Executive (Overseas) of the Year award.
Mr Gill, 49, is a former relief teacher at Queenstown Secondary School.
He went to Washington State University in the 1980s to pursue a degree in finance and a Master of Business Administration degree. After graduation, he joined CME in 1988 as a clerk. 'I was paid US$5 an hour. This wasn't a lot,' he said.
He worked his way up the organisation, from operations specialist to senior risk analyst and then options manager, and later as president of the clearing house in 1998.
'The best advice I can give is that if you are in the workforce, think big, act big. Work at a company as if you own the firm,' he said.
Also honoured this year were Cerebos Pacific president Eiji Koike, who won the Outstanding Chief Executive award, and International SOS, which won the Enterprise award. The group provides medical assistance, international health care and security services.
gabrielc@sph.com.sg
THE WINNERS (From left) Outstanding Overseas CEO Phupinder Gill; Businessman of the Year Zhong Sheng Jian of Yanlord Land; Enterprise award winners Dr Pascal Rey-Herme, co-founder and group medical director, and Mr Arnaud Vaissie, co-founder, chairman and CEO of International SOS; and CEO of the Year Eiji Koike from Cerebos. -- ST PHOTO:MALCOLM KOH
BT : OUE unveils note issue; Lippo plans placement
Business Times - 01 Jun 2010
OUE unveils note issue; Lippo plans placement
Property firm plans acquisitions from $200m note sale
By UMA SHANKARI
INDONESIA'S Lippo Group is selling an undisclosed number of its shares in property group Overseas Union Enterprise (OUE), OUE said yesterday.
OUE is also planning to issue up to $200 million in convertible notes due 2015. The property group said that net proceeds from the sale of the notes - which are convertible into new ordinary shares - will be used to buy hospitality, retail, commercial and/or residential land sites or properties for development in Singapore.
'We have recently identified a property in Singapore that we are considering for our portfolio. The property is an office tower complex in the CBD (central business district) area which we believe is suitable for redevelopment,' said OUE.
The proposed acquisition and development will be financed by both internal resources and external borrowings, the company said.
OUE also said that it is looking to start a residential property business. Right now, it has one residential site - Twin Peaks, a project at the site of the former The Grangeford - in its portfolio. The project is expected to be launched sometime this month.
In the same series of filings to the Singapore Exchange, OUE also announced a planned vendor share placement. Controlling shareholder Lippo now has an indirect interest of 51.19 per cent in the company. It also holds 37.32 per cent of OUE's shares through Golden Concord Asia, which will sell an undisclosed number of its shares in a placement.
Lippo paid $957 million to buy Malaysian tycoon Ananda Krishnan's stake in the Singapore-listed OUE in March. This gave Lippo sole control of the property group. The move came following reports that ties between Lippo president Stephen Riady and Mr Krishnan were strained and that there were disagreements over the management of OUE.
Mr Riady, who also became OUE's executive chairman, told BT in an interview last month that OUE will be Lippo's Singapore flagship. His aim is to have 50 per cent of OUE's bottom line come from recurrent income and get development profit to make up the remaining half. OUE has almost no development profit now, Mr Riady said then.
Analysts said that the convertible note issue is probably aimed at funding future acquisitions of residential land.
'They (OUE) have publicly said that they want more development profits. To achieve this, they will first need to buy more land,' said an analyst with a foreign bank here.
The issue size and pricing will be determined after a book-building exercise, OUE said. The convertible notes will be offered to institutional or accredited investors in Singapore, qualified institutional buyers in the United States and also eligible investors outside the US.
OUE shares lost two cents to close at $18.98 yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
OUE unveils note issue; Lippo plans placement
Property firm plans acquisitions from $200m note sale
By UMA SHANKARI
INDONESIA'S Lippo Group is selling an undisclosed number of its shares in property group Overseas Union Enterprise (OUE), OUE said yesterday.
OUE is also planning to issue up to $200 million in convertible notes due 2015. The property group said that net proceeds from the sale of the notes - which are convertible into new ordinary shares - will be used to buy hospitality, retail, commercial and/or residential land sites or properties for development in Singapore.
'We have recently identified a property in Singapore that we are considering for our portfolio. The property is an office tower complex in the CBD (central business district) area which we believe is suitable for redevelopment,' said OUE.
The proposed acquisition and development will be financed by both internal resources and external borrowings, the company said.
OUE also said that it is looking to start a residential property business. Right now, it has one residential site - Twin Peaks, a project at the site of the former The Grangeford - in its portfolio. The project is expected to be launched sometime this month.
In the same series of filings to the Singapore Exchange, OUE also announced a planned vendor share placement. Controlling shareholder Lippo now has an indirect interest of 51.19 per cent in the company. It also holds 37.32 per cent of OUE's shares through Golden Concord Asia, which will sell an undisclosed number of its shares in a placement.
Lippo paid $957 million to buy Malaysian tycoon Ananda Krishnan's stake in the Singapore-listed OUE in March. This gave Lippo sole control of the property group. The move came following reports that ties between Lippo president Stephen Riady and Mr Krishnan were strained and that there were disagreements over the management of OUE.
Mr Riady, who also became OUE's executive chairman, told BT in an interview last month that OUE will be Lippo's Singapore flagship. His aim is to have 50 per cent of OUE's bottom line come from recurrent income and get development profit to make up the remaining half. OUE has almost no development profit now, Mr Riady said then.
Analysts said that the convertible note issue is probably aimed at funding future acquisitions of residential land.
'They (OUE) have publicly said that they want more development profits. To achieve this, they will first need to buy more land,' said an analyst with a foreign bank here.
The issue size and pricing will be determined after a book-building exercise, OUE said. The convertible notes will be offered to institutional or accredited investors in Singapore, qualified institutional buyers in the United States and also eligible investors outside the US.
OUE shares lost two cents to close at $18.98 yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Far East may launch 6 projects in H2
Business Times - 01 Jun 2010
Far East may launch 6 projects in H2
It cites good sentiment, low interest rates
By UMA SHANKARI
FAR East Organization plans to launch up to six residential projects with more than 1,500 units in the second half of this year, said chief operating officer Chia Boon Kuah.
Mr Chia, who is bullish on the high-end and mass market segments of the private property market here, said most - if not all - of the projects could be pushed out by year-end.
'On the ground, the sentiment is quite good,' he said. 'The demand factors are there, with the positive economic situation in Singapore and the low interest rate environment.'
Two of the six projects are being developed as joint ventures with Frasers Centrepoint - Waterfront Gold with 361 units and and Waterfront Isle with 556.
The projects are the third and fourth phases of the two developers' Waterfront Collection along Bedok Reservoir.
The four other projects are fully owned by Far East.
They are: the 319-unit Greenwich at the corner of Yio Chu Kang and Seletar roads; the 214-unit Lanai in the Hillview area; the 72-unit Horizon Residences on Pasir Panjang Hill; and the luxury Skyline @ Orchard Boulevard, which will have 40 apartments.
Together, the six projects will yield 1,562 units - although not all units in each project will be released during the initial launch
Far East - Singapore's biggest private property group - has already launched two residential projects this year: the 280-unit Altez in Enggor Street and The Shore Residences opposite Katong Shopping Centre, which has 408 units. Last year, the developer launched 12 projects.
Of the six upcoming launches, four - Waterfront Gold, Greenwich, Skyline @ Orchard Boulevard and Horizon Residences - could be launched within four months, BT understands.
Waterfront Gold will have mostly smaller units to cater to current market demand.
In line with this, apartments at the project will be sold at higher prices per sq ft compared to the first two phases of the Waterfront Collection, Waterfront Waves and Waterfront Key. Units at Waterfront Waves, for example, fetched $850 psf on average.
Mr Chia is especially excited about Skyline @ Orchard Boulevard, which he said will 'offer super high net worth individuals world-class residences'.
The development was designed by Japanese architect Fumihiko Maki and is his first residential project outside Japan.
Far East is on the lookout for new residential sites.
'We are looking for land and when land is available, we will consider it carefully,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Horizon Residences: The 72-unit project could be launched within four months
Far East may launch 6 projects in H2
It cites good sentiment, low interest rates
By UMA SHANKARI
FAR East Organization plans to launch up to six residential projects with more than 1,500 units in the second half of this year, said chief operating officer Chia Boon Kuah.
Mr Chia, who is bullish on the high-end and mass market segments of the private property market here, said most - if not all - of the projects could be pushed out by year-end.
'On the ground, the sentiment is quite good,' he said. 'The demand factors are there, with the positive economic situation in Singapore and the low interest rate environment.'
Two of the six projects are being developed as joint ventures with Frasers Centrepoint - Waterfront Gold with 361 units and and Waterfront Isle with 556.
The projects are the third and fourth phases of the two developers' Waterfront Collection along Bedok Reservoir.
The four other projects are fully owned by Far East.
They are: the 319-unit Greenwich at the corner of Yio Chu Kang and Seletar roads; the 214-unit Lanai in the Hillview area; the 72-unit Horizon Residences on Pasir Panjang Hill; and the luxury Skyline @ Orchard Boulevard, which will have 40 apartments.
Together, the six projects will yield 1,562 units - although not all units in each project will be released during the initial launch
Far East - Singapore's biggest private property group - has already launched two residential projects this year: the 280-unit Altez in Enggor Street and The Shore Residences opposite Katong Shopping Centre, which has 408 units. Last year, the developer launched 12 projects.
Of the six upcoming launches, four - Waterfront Gold, Greenwich, Skyline @ Orchard Boulevard and Horizon Residences - could be launched within four months, BT understands.
Waterfront Gold will have mostly smaller units to cater to current market demand.
In line with this, apartments at the project will be sold at higher prices per sq ft compared to the first two phases of the Waterfront Collection, Waterfront Waves and Waterfront Key. Units at Waterfront Waves, for example, fetched $850 psf on average.
Mr Chia is especially excited about Skyline @ Orchard Boulevard, which he said will 'offer super high net worth individuals world-class residences'.
The development was designed by Japanese architect Fumihiko Maki and is his first residential project outside Japan.
Far East is on the lookout for new residential sites.
'We are looking for land and when land is available, we will consider it carefully,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Horizon Residences: The 72-unit project could be launched within four months
BT : China property firms' dollar bonds take a hit
Business Times - 01 Jun 2010
China property firms' dollar bonds take a hit
Fears that the real-estate market is overheating weigh on performance
(HONG KONG) Dollar bonds sold by China real estate companies this year are the worst performers among Asian non-financial corporate debt denominated in the US currency amid concern that the nation's property market is overheating.
Yields on the US$3.9 billion of bonds issued by Kaisa Group Holdings Ltd, Country Garden Holdings Co and seven other developers since January widened by an average 2.26 percentage points relative to Treasuries as of last week, according to data compiled by Bloomberg. That's more than the 2.05 percentage point increase in spreads for the seven dollar-denominated bonds sold by other companies in Asia outside Japan.
Investors are demanding greater yields to lend to China property firms, a sign they expect borrowers will have a harder time meeting debt payments amid a government clampdown down on lending. Goldman Sachs Group Inc and Credit Suisse Group AG cut their profit estimates for Chinese real estate companies after a 12.8 per cent jump in real estate prices in April from a year earlier spurred the state to increase regulation.
'New issues by Chinese developers will stall for the time being,' said Vince Chan, the Hong Kong-based chief credit strategist with Amias Berman & Co LLP, a fixed-income advisory and brokerage firm founded by two former Citigroup Inc bankers. 'Investors need handsome rewards for getting exposed to weaker fundamentals.'
The amount of dollar bonds issued by China developers represents 45 per cent of all corporate dollar debt sales in Asia outside Japan this year, Bloomberg data show. The yield spread on US$350 million of 13.5 per cent notes sold by Shenzhen-based Kaisa last month widened the most of the nine issues, expanding to 16.52 percentage points from 11.07 percentage points, Nomura Holdings Inc prices on Bloomberg show.
Kaisa is developing 18 projects in Shenzhen, Dongguan and other cities in the Pearl River Delta, most of them high-rise residential complexes that combine recreational and commercial space, according to its website. An investor who bought the company's 2015 bonds at par would have lost 15.5 per cent.
Elsewhere in credit markets, the extra yield investors demand to own company debt instead of Treasuries widened 5 basis points last week to 193 basis points, or 1.93 percentage points, Bank of America Merrill Lynch index data show. The spread, which peaked at 511 on March 30, 2009, is up from this year's low of 142 on April 21. Average yields rose to 4.06 per cent, the highest based on weekly closes since the period ended on March 5.
Corporate bond issuance worldwide slowed this month to US$66.1 billion, down from US$183 billion in April and the least since December 2000, according to data compiled by Bloomberg.
'Companies have to be prepared to strike and strike quickly,' said Rick Martin, the London-based director of treasury at Virgin Media Inc, the UK's second-largest pay-television company, at a May 28 briefing in London. 'The key is to have the team ready and primed and able to pull the trigger at short notice. I can't think of a time when the forces have been so polarising.'
The cost to insure US corporate debt against default rose last week. Credit-default swaps on the Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses or to speculate on creditworthiness, increased 25.1 basis points this month to a mid-price of 117.2 basis points. The index typically rises as investor confidence deteriorates and falls as it improves.
Bond risk rose in Asia yesterday, with the Markit iTraxx Asia index up four basis points, according to Royal Bank of Scotland Group Plc. The Markit iTraxx Japan index rose 5 basis points, Morgan Stanley prices show.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements. A basis point on a credit-default swap contract protecting US$10 million of debt from default for five years is equivalent to US$1,000 a year.
In emerging markets, spreads narrowed 16 basis points last week to 321 basis points, trimming the monthly increase to 63, according to the JPMorgan Emerging Market Bond Index.
China has added to regulations designed to cool the property market several times this year, including raising banks' reserve requirements three times since January, restricting pre-sales by developers and curbing loans for third- home purchases. It also raised minimum mortgage rates and tightened down-payment requirements for second homes.
Shanghai's plan to begin a property tax on residential real estate was submitted to the central government for review, the China Securities Journal reported yesterday, citing unidentified people.
Goldman Sachs lowered its 2010 net income estimates for Chinese developers by an average 13 per cent and reduced earnings forecasts for the next two years by 25 per cent, analysts led by Yi Wang wrote in a May 19 report. Credit Suisse pared earnings- per-share estimates by as much as 15 per cent for 2010 and 20 per cent for 2011, citing the government's clampdown.
'With the negative headlines coming out of this sector, investors are less likely to be drawn to participate in new issues because of a high coupon,' said Tan Chew May, a credit analyst for Aberdeen Asset Management Asia Ltd., which oversees US$1.5 billion of Asian dollar debt, in Singapore. 'With the trend of widening spreads, new names are forced to come at premium.'
China property developers paid coupons as high as 14 per cent to issue dollar debt this year, compared with an average 9.2 per cent for other companies in Asia and 6.2 per cent for US property companies. On average, Chinese property companies are paying a 10.875 per cent coupon.
Glorious Property Holdings Ltd, which has 26 real estate projects in cities including Shanghai, Beijing, Harbin and Changchun, postponed its first sale of dollar-denominated bonds in April. The Hong Kong-listed company cited poor credit market conditions for the delay.
Renhe Commercial Holdings Co, a developer of underground shopping centres based in Harbin, China, sold five-year, 11.75 per cent dollar notes on May 18 to yield 974 basis points more than Treasuries after delaying the sale for two weeks.
The relatively strong finances of China developers means some companies can afford to pay double-digit coupons, according to Andy Mantel, Hong Kong-based founder of hedge fund manager Pacific Sun Investment Management Ltd.
Country Garden, which builds villas, townhouses and apartments in China, sold bonds in April with an 11.25 per cent coupon. The company, controlled by China's second-richest woman, Yang Huiyan, said contracted revenue in the first quarter rose 82 per cent on sales in the Guangdong area. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Taking the heat off: China has moved to cool the property market several times this year
China property firms' dollar bonds take a hit
Fears that the real-estate market is overheating weigh on performance
(HONG KONG) Dollar bonds sold by China real estate companies this year are the worst performers among Asian non-financial corporate debt denominated in the US currency amid concern that the nation's property market is overheating.
Yields on the US$3.9 billion of bonds issued by Kaisa Group Holdings Ltd, Country Garden Holdings Co and seven other developers since January widened by an average 2.26 percentage points relative to Treasuries as of last week, according to data compiled by Bloomberg. That's more than the 2.05 percentage point increase in spreads for the seven dollar-denominated bonds sold by other companies in Asia outside Japan.
Investors are demanding greater yields to lend to China property firms, a sign they expect borrowers will have a harder time meeting debt payments amid a government clampdown down on lending. Goldman Sachs Group Inc and Credit Suisse Group AG cut their profit estimates for Chinese real estate companies after a 12.8 per cent jump in real estate prices in April from a year earlier spurred the state to increase regulation.
'New issues by Chinese developers will stall for the time being,' said Vince Chan, the Hong Kong-based chief credit strategist with Amias Berman & Co LLP, a fixed-income advisory and brokerage firm founded by two former Citigroup Inc bankers. 'Investors need handsome rewards for getting exposed to weaker fundamentals.'
The amount of dollar bonds issued by China developers represents 45 per cent of all corporate dollar debt sales in Asia outside Japan this year, Bloomberg data show. The yield spread on US$350 million of 13.5 per cent notes sold by Shenzhen-based Kaisa last month widened the most of the nine issues, expanding to 16.52 percentage points from 11.07 percentage points, Nomura Holdings Inc prices on Bloomberg show.
Kaisa is developing 18 projects in Shenzhen, Dongguan and other cities in the Pearl River Delta, most of them high-rise residential complexes that combine recreational and commercial space, according to its website. An investor who bought the company's 2015 bonds at par would have lost 15.5 per cent.
Elsewhere in credit markets, the extra yield investors demand to own company debt instead of Treasuries widened 5 basis points last week to 193 basis points, or 1.93 percentage points, Bank of America Merrill Lynch index data show. The spread, which peaked at 511 on March 30, 2009, is up from this year's low of 142 on April 21. Average yields rose to 4.06 per cent, the highest based on weekly closes since the period ended on March 5.
Corporate bond issuance worldwide slowed this month to US$66.1 billion, down from US$183 billion in April and the least since December 2000, according to data compiled by Bloomberg.
'Companies have to be prepared to strike and strike quickly,' said Rick Martin, the London-based director of treasury at Virgin Media Inc, the UK's second-largest pay-television company, at a May 28 briefing in London. 'The key is to have the team ready and primed and able to pull the trigger at short notice. I can't think of a time when the forces have been so polarising.'
The cost to insure US corporate debt against default rose last week. Credit-default swaps on the Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses or to speculate on creditworthiness, increased 25.1 basis points this month to a mid-price of 117.2 basis points. The index typically rises as investor confidence deteriorates and falls as it improves.
Bond risk rose in Asia yesterday, with the Markit iTraxx Asia index up four basis points, according to Royal Bank of Scotland Group Plc. The Markit iTraxx Japan index rose 5 basis points, Morgan Stanley prices show.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements. A basis point on a credit-default swap contract protecting US$10 million of debt from default for five years is equivalent to US$1,000 a year.
In emerging markets, spreads narrowed 16 basis points last week to 321 basis points, trimming the monthly increase to 63, according to the JPMorgan Emerging Market Bond Index.
China has added to regulations designed to cool the property market several times this year, including raising banks' reserve requirements three times since January, restricting pre-sales by developers and curbing loans for third- home purchases. It also raised minimum mortgage rates and tightened down-payment requirements for second homes.
Shanghai's plan to begin a property tax on residential real estate was submitted to the central government for review, the China Securities Journal reported yesterday, citing unidentified people.
Goldman Sachs lowered its 2010 net income estimates for Chinese developers by an average 13 per cent and reduced earnings forecasts for the next two years by 25 per cent, analysts led by Yi Wang wrote in a May 19 report. Credit Suisse pared earnings- per-share estimates by as much as 15 per cent for 2010 and 20 per cent for 2011, citing the government's clampdown.
'With the negative headlines coming out of this sector, investors are less likely to be drawn to participate in new issues because of a high coupon,' said Tan Chew May, a credit analyst for Aberdeen Asset Management Asia Ltd., which oversees US$1.5 billion of Asian dollar debt, in Singapore. 'With the trend of widening spreads, new names are forced to come at premium.'
China property developers paid coupons as high as 14 per cent to issue dollar debt this year, compared with an average 9.2 per cent for other companies in Asia and 6.2 per cent for US property companies. On average, Chinese property companies are paying a 10.875 per cent coupon.
Glorious Property Holdings Ltd, which has 26 real estate projects in cities including Shanghai, Beijing, Harbin and Changchun, postponed its first sale of dollar-denominated bonds in April. The Hong Kong-listed company cited poor credit market conditions for the delay.
Renhe Commercial Holdings Co, a developer of underground shopping centres based in Harbin, China, sold five-year, 11.75 per cent dollar notes on May 18 to yield 974 basis points more than Treasuries after delaying the sale for two weeks.
The relatively strong finances of China developers means some companies can afford to pay double-digit coupons, according to Andy Mantel, Hong Kong-based founder of hedge fund manager Pacific Sun Investment Management Ltd.
Country Garden, which builds villas, townhouses and apartments in China, sold bonds in April with an 11.25 per cent coupon. The company, controlled by China's second-richest woman, Yang Huiyan, said contracted revenue in the first quarter rose 82 per cent on sales in the Guangdong area. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Taking the heat off: China has moved to cool the property market several times this year
BT : To buy or not to buy?
Business Times - 01 Jun 2010
To buy or not to buy?
Prominent developers share their views on where the property market is headed
PRIVATE residential prices in Singapore have been climbing since the second quarter of last year, prompting home seekers and investors who haven't gotten their feet wet to wonder: 'Should I still buy now?'
Some of the most prominent developers in Singapore - who are also past winners of the Singapore Business Awards - shared their views on where the property market is headed with The Business Times in April (before the government announced its land sales programme for H2 2010).
Ho Bee Investment chairman and CEO Chua Thian Poh, who took home the Businessman of the Year award for 2006, sees the residential market continuing to do well. Hong Leong Group executive chairman Kwek Leng Beng, who won the same award for 1996, believes Sentosa will be where the action is in the next five years. And CapitaLand president and CEO Liew Mun Leong, who was the Outstanding CEO for 2005, reminds us that location is key when it comes to buying a home.
BT: Many market watchers say that 2010 is the year for high-end private home sales to pick up. Do you agree, and why?
Chua Thian Poh: Prices for mass market homes have already surpassed the previous peak but not those for high-end private homes, which are still about 20 per cent to 30 per cent below the peak. As this recovery is led by the mass market, I believe the recovery is more sustainable and as such, the momentum of the recovery would filter upwards to the high-end segment.
Kwek Leng Beng: High-end private home sales are beginning to pick up definitely, but not as fast as one would expect. There is a strong sentiment in the market with low interest rates for housing loans and high liquidity. The market is now moving very nicely. Signs of economic recovery are real as the first quarter GDP confirms that Singapore is fast recovering from the recession. The definition of high-end is very broad and those exceeding $2,500 per sq ft find slower pick up than those below $2,500 psf. A lot also depends on the districts and locations of this type of property.
Liew Mun Leong: This year, we foresee prices rising by between 10 per cent and 20 per cent for the mid- to high-mid segments of the market. While sales remain brisk, prices for mass market projects are likely to remain steady and affordable.
Market sentiments improved significantly since the third quarter of 2009 as the global financial situation has stabilised and economies worldwide show signs of recovery. The Ministry of Trade and Industry has said that the overall outlook for external economies has improved for the rest of 2010 and that it expects the Singapore economy to grow by 7-9 per cent in 2010.
Late last year, we launched our high-end condominium, Urban Suites; it enjoyed strong sales. From then on, we saw strong buying interest for projects in the high-end segment of the market.
Sales of mass-market private homes remain brisk. Do you see this trend continuing, and why?
Chua: As long as the economy is on the recovery path, demand for mass market homes should continue to be strong. Most people would want to upgrade.
Kwek: I agree that the mass market continues to perform well though it is not as hot as before. You can see genuine investors who realise that spare cash earns very little interest. Prices in this sector are still affordable.
Liew: For 2010, the Singapore real estate market will reap the benefits of the remaking of Singapore with the opening of the two integrated resorts. Well located projects, particularly those at the city fringe or near MRT stations, will do well.
In April, we started phase two sales of The Interlace, a new residential destination at Depot Road/Alexandra Road. It is one of the largest and most ambitious residential developments in Singapore and will be a new postcard landmark for Singapore. The site has a good location at the Southern Ridges of Singapore and is seeing strong interest from homebuyers.
Liquidity, low interest rates and lack of investment products or opportunities will lead to further interest in property investment.
The government will be releasing more residential sites for sale. Do you think this will bring land prices down, and to what extent?
Chua: This is a fundamental economic principle. With more land supply, prices should moderate to a more reasonable level.
Kwek: The release of more residential sites is a welcome move for developers as many are looking to replenish their land banks. However, land prices have been increasing with each tender because developers believe the market will continue to trend up with anticipation of better economic numbers. Offering more sites will not bring prices down immediately but the tender prices going forward will not be so fierce.
Most important is to bear in mind that there is a lag time between actual supply of land and the completion of the condominiums. The actual demand in terms of occupancy can be ascertained only on completion of the projects. Before completion, it is only a projection which may not be accurate.
Liew: We welcome the release of more residential sites. This will give developers a chance to replenish their land banks and cater to a broad spectrum of homebuyers across different market segments and locations.
What opportunities do you see in Singapore's property market in the next five years?
Chua: Owning a private home has always been the aspiration for most Singaporeans. With the economy doing well, and coupled with the intention of the government to increase the population, we should see the residential market continuing its good run.
Kwek: As Singapore's economy recovers from the economic downturn, I am optimistic about the property market. The integrated resorts (IRs) are basically aiming at visitors of a different kind and when their operations stabilise within the next two years, we should see more foreigners buying condominiums in Singapore.
Liew: Looking ahead, Singapore's economic prospects are positive, coupled with rising business and consumer confidence. MTI expects the Singapore economy to grow by 7-9 per cent in 2010. We expect the renewed momentum of the Singapore economy to drive growth in the real estate market, as the two are closely interlinked.
In particular, the opening of the two integrated resorts in 2010 is widely anticipated to benefit the Singapore residential market, with prime projects attracting strong interest from both local and foreign buyers.
How is your company positioning itself to exploit these opportunities?
Chua: We will be selective in sourcing for land that has good attributes and amenities to build homes that are demanded by the general public.
Kwek: We continue to believe in Singapore's market and will continue to offer customers good value and quality projects at realistic prices.
I see within five years, prices of property units in Sentosa going up a lot more than those on the main island as there could only be 2,500 units in Sentosa and there is no more land for tender or for en bloc sale there. Supply is limited in Sentosa but demand will continue to grow.
Liew: For us, we have a strong brand position as a leading developer in Singapore with an established track record of building premier homes. We have consistently delivered quality projects that are beautifully designed and well-located, and this will keep us in good stead in the coming years.
We are encouraged by the renewed strong buying interest for our projects. We have a number of projects in the pipeline that will be launch-ready over the next 12 months, including the development on Farrer Road, Urban Resort Condominium and The Nassim.
We are comfortable with our healthy pipeline of over 2,600 residential units. Even with this healthy pipeline, we will be interested in any well-located and attractively priced site available.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
To buy or not to buy?
Prominent developers share their views on where the property market is headed
PRIVATE residential prices in Singapore have been climbing since the second quarter of last year, prompting home seekers and investors who haven't gotten their feet wet to wonder: 'Should I still buy now?'
Some of the most prominent developers in Singapore - who are also past winners of the Singapore Business Awards - shared their views on where the property market is headed with The Business Times in April (before the government announced its land sales programme for H2 2010).
Ho Bee Investment chairman and CEO Chua Thian Poh, who took home the Businessman of the Year award for 2006, sees the residential market continuing to do well. Hong Leong Group executive chairman Kwek Leng Beng, who won the same award for 1996, believes Sentosa will be where the action is in the next five years. And CapitaLand president and CEO Liew Mun Leong, who was the Outstanding CEO for 2005, reminds us that location is key when it comes to buying a home.
BT: Many market watchers say that 2010 is the year for high-end private home sales to pick up. Do you agree, and why?
Chua Thian Poh: Prices for mass market homes have already surpassed the previous peak but not those for high-end private homes, which are still about 20 per cent to 30 per cent below the peak. As this recovery is led by the mass market, I believe the recovery is more sustainable and as such, the momentum of the recovery would filter upwards to the high-end segment.
Kwek Leng Beng: High-end private home sales are beginning to pick up definitely, but not as fast as one would expect. There is a strong sentiment in the market with low interest rates for housing loans and high liquidity. The market is now moving very nicely. Signs of economic recovery are real as the first quarter GDP confirms that Singapore is fast recovering from the recession. The definition of high-end is very broad and those exceeding $2,500 per sq ft find slower pick up than those below $2,500 psf. A lot also depends on the districts and locations of this type of property.
Liew Mun Leong: This year, we foresee prices rising by between 10 per cent and 20 per cent for the mid- to high-mid segments of the market. While sales remain brisk, prices for mass market projects are likely to remain steady and affordable.
Market sentiments improved significantly since the third quarter of 2009 as the global financial situation has stabilised and economies worldwide show signs of recovery. The Ministry of Trade and Industry has said that the overall outlook for external economies has improved for the rest of 2010 and that it expects the Singapore economy to grow by 7-9 per cent in 2010.
Late last year, we launched our high-end condominium, Urban Suites; it enjoyed strong sales. From then on, we saw strong buying interest for projects in the high-end segment of the market.
Sales of mass-market private homes remain brisk. Do you see this trend continuing, and why?
Chua: As long as the economy is on the recovery path, demand for mass market homes should continue to be strong. Most people would want to upgrade.
Kwek: I agree that the mass market continues to perform well though it is not as hot as before. You can see genuine investors who realise that spare cash earns very little interest. Prices in this sector are still affordable.
Liew: For 2010, the Singapore real estate market will reap the benefits of the remaking of Singapore with the opening of the two integrated resorts. Well located projects, particularly those at the city fringe or near MRT stations, will do well.
In April, we started phase two sales of The Interlace, a new residential destination at Depot Road/Alexandra Road. It is one of the largest and most ambitious residential developments in Singapore and will be a new postcard landmark for Singapore. The site has a good location at the Southern Ridges of Singapore and is seeing strong interest from homebuyers.
Liquidity, low interest rates and lack of investment products or opportunities will lead to further interest in property investment.
The government will be releasing more residential sites for sale. Do you think this will bring land prices down, and to what extent?
Chua: This is a fundamental economic principle. With more land supply, prices should moderate to a more reasonable level.
Kwek: The release of more residential sites is a welcome move for developers as many are looking to replenish their land banks. However, land prices have been increasing with each tender because developers believe the market will continue to trend up with anticipation of better economic numbers. Offering more sites will not bring prices down immediately but the tender prices going forward will not be so fierce.
Most important is to bear in mind that there is a lag time between actual supply of land and the completion of the condominiums. The actual demand in terms of occupancy can be ascertained only on completion of the projects. Before completion, it is only a projection which may not be accurate.
Liew: We welcome the release of more residential sites. This will give developers a chance to replenish their land banks and cater to a broad spectrum of homebuyers across different market segments and locations.
What opportunities do you see in Singapore's property market in the next five years?
Chua: Owning a private home has always been the aspiration for most Singaporeans. With the economy doing well, and coupled with the intention of the government to increase the population, we should see the residential market continuing its good run.
Kwek: As Singapore's economy recovers from the economic downturn, I am optimistic about the property market. The integrated resorts (IRs) are basically aiming at visitors of a different kind and when their operations stabilise within the next two years, we should see more foreigners buying condominiums in Singapore.
Liew: Looking ahead, Singapore's economic prospects are positive, coupled with rising business and consumer confidence. MTI expects the Singapore economy to grow by 7-9 per cent in 2010. We expect the renewed momentum of the Singapore economy to drive growth in the real estate market, as the two are closely interlinked.
In particular, the opening of the two integrated resorts in 2010 is widely anticipated to benefit the Singapore residential market, with prime projects attracting strong interest from both local and foreign buyers.
How is your company positioning itself to exploit these opportunities?
Chua: We will be selective in sourcing for land that has good attributes and amenities to build homes that are demanded by the general public.
Kwek: We continue to believe in Singapore's market and will continue to offer customers good value and quality projects at realistic prices.
I see within five years, prices of property units in Sentosa going up a lot more than those on the main island as there could only be 2,500 units in Sentosa and there is no more land for tender or for en bloc sale there. Supply is limited in Sentosa but demand will continue to grow.
Liew: For us, we have a strong brand position as a leading developer in Singapore with an established track record of building premier homes. We have consistently delivered quality projects that are beautifully designed and well-located, and this will keep us in good stead in the coming years.
We are encouraged by the renewed strong buying interest for our projects. We have a number of projects in the pipeline that will be launch-ready over the next 12 months, including the development on Farrer Road, Urban Resort Condominium and The Nassim.
We are comfortable with our healthy pipeline of over 2,600 residential units. Even with this healthy pipeline, we will be interested in any well-located and attractively priced site available.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Demand for resale homes in D1, 2 & 4 still resilient
Business Times - 01 Jun 2010
Demand for resale homes in D1, 2 & 4 still resilient
RESALE deals of non-landed private homes in districts 1 and 2 (which cover Singapore's financial district) as well as district 4 (which includes Sentosa Cove, Keppel Bay and Harbourfront areas) reached $750.8 million for the whole of last year, according to property consultancy group CB Richard Ellis.
This is lower than the 2007 peak of $2.08 billion but above the $737.8 million average annual resale level between 2005 and 2008 for the locations.
The figure so far this year is $470.2 million, based on URA Realis caveats data as at May 26.
'The buzz created by the integrated resorts and emerging prime office hub will ensure sustained activity in the resale market,' said CBRE executive director (residential) Joseph Tan.
Resales refer to secondary market transactions of completed developments, defined as projects that have received Certificate of Statutory Completion.
Districts 1 and 2 include the Marina Bay, Shenton Way and Tanjong Pagar belt.
'New residential projects in Sentosa Cove over the coming months will also further transform Sentosa into a lively residential enclave and this will continue to drive resale activity there. Apartments in the inner city and Sentosa will be sought after by investors and owner-occupiers alike due to their potential for high appreciation in value and attractive rental yields,' Mr Tan added.
CBRE estimates that about 1.3 million sq ft of offices in the Central Business District will be converted to mainly residential use by 2013.
So far this year, 246 non-landed private homes have changed hands in the resale market in districts 1, 2 and 4, or 51 per cent of the 482-unit resale volume for the whole of last year.
Last year, the most popular development in the resale market in the locations was Caribbean @ Keppel Bay (with 200 units sold), followed by The Sail @ Marina Bay (128 units).
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Demand for resale homes in D1, 2 & 4 still resilient
RESALE deals of non-landed private homes in districts 1 and 2 (which cover Singapore's financial district) as well as district 4 (which includes Sentosa Cove, Keppel Bay and Harbourfront areas) reached $750.8 million for the whole of last year, according to property consultancy group CB Richard Ellis.
This is lower than the 2007 peak of $2.08 billion but above the $737.8 million average annual resale level between 2005 and 2008 for the locations.
The figure so far this year is $470.2 million, based on URA Realis caveats data as at May 26.
'The buzz created by the integrated resorts and emerging prime office hub will ensure sustained activity in the resale market,' said CBRE executive director (residential) Joseph Tan.
Resales refer to secondary market transactions of completed developments, defined as projects that have received Certificate of Statutory Completion.
Districts 1 and 2 include the Marina Bay, Shenton Way and Tanjong Pagar belt.
'New residential projects in Sentosa Cove over the coming months will also further transform Sentosa into a lively residential enclave and this will continue to drive resale activity there. Apartments in the inner city and Sentosa will be sought after by investors and owner-occupiers alike due to their potential for high appreciation in value and attractive rental yields,' Mr Tan added.
CBRE estimates that about 1.3 million sq ft of offices in the Central Business District will be converted to mainly residential use by 2013.
So far this year, 246 non-landed private homes have changed hands in the resale market in districts 1, 2 and 4, or 51 per cent of the 482-unit resale volume for the whole of last year.
Last year, the most popular development in the resale market in the locations was Caribbean @ Keppel Bay (with 200 units sold), followed by The Sail @ Marina Bay (128 units).
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : NUS home price index rises 2.5% in April
Business Times - 01 Jun 2010
NUS home price index rises 2.5% in April
But index expected to rise at slower pace or stay flat in May
By KALPANA RASHIWALA
LATEST flash estimates from National University of Singapore show that its overall price index for non-landed private homes rose 2.5 per cent in April over the preceding month.
The flash estimate for April reflects an increase of about 6 per cent since the end of last year and a 32.8 per cent improvement from the low in March last year when Singapore's property market bottomed out after the global financial crisis.
But NUS's Singapore Residential Price Index (SRPI)for May 2010 is expected to rise at a slower pace or even remain stagnant, say market watchers such as DTZ executive director (consulting) Ong Choon Fah.
Sentiment in the property market had already started to wane in the second half of April on the back of concerns about Europe's debt crisis and the fall in the stock market.
The Singapore Government's announcement in May that it will release a record amount of land for sale in the second half of this year is also creating an air of caution among potential home buyers.
'Despite continuing interest among residents to own a private property, one does not feel great urgency to buy. Potential buyers are taking more time to evaluate while they await greater clarity in the big picture. Right now, we're getting a lot of 'noise' due to mixed signals from economic indicators from abroad,' says Mrs Ong.
Agreeing, another property consultant reckons that the NUS indices may begin to taper off for May and show a decline in June, given that these indices cover only completed properties and hence tend to lag the new launches market, where things have already started to slow over the past few weeks.
For April, NUS's price index for non-landed homes in the central region rose at a faster clip over the preceding month than it did for the non-central region.
In the central region, which covers districts 1-4 and 9-11, the index increased 3 per cent, against a 2.1 per cent gain for the non-central region.
However, the year-to-date gain for the non-central region was 6.8 per cent, outpacing a 5 per cent increase in the central region.
The central region index is now 37.8 per cent above the post-financial crisis low in March last year. The appreciation for the non-central region has been at a slower pace of 30.3 per cent over the same period.
Despite the heftier rise in prices in the central region, the flash estimate index for April for the location was still 6.4 per cent shy of the pre-financial crisis peak in November 2007.
In contrast, for the non-central region, the latest index has already surpassed its respective January 2008 pre-crisis peak by 8.7 per cent. As a result, the overall SRPI flash estimate index is now 3 per cent above its November 2007 high.
The central region index is now 37.8 per cent above the post-financial crisis low.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
NUS home price index rises 2.5% in April
But index expected to rise at slower pace or stay flat in May
By KALPANA RASHIWALA
LATEST flash estimates from National University of Singapore show that its overall price index for non-landed private homes rose 2.5 per cent in April over the preceding month.
The flash estimate for April reflects an increase of about 6 per cent since the end of last year and a 32.8 per cent improvement from the low in March last year when Singapore's property market bottomed out after the global financial crisis.
But NUS's Singapore Residential Price Index (SRPI)for May 2010 is expected to rise at a slower pace or even remain stagnant, say market watchers such as DTZ executive director (consulting) Ong Choon Fah.
Sentiment in the property market had already started to wane in the second half of April on the back of concerns about Europe's debt crisis and the fall in the stock market.
The Singapore Government's announcement in May that it will release a record amount of land for sale in the second half of this year is also creating an air of caution among potential home buyers.
'Despite continuing interest among residents to own a private property, one does not feel great urgency to buy. Potential buyers are taking more time to evaluate while they await greater clarity in the big picture. Right now, we're getting a lot of 'noise' due to mixed signals from economic indicators from abroad,' says Mrs Ong.
Agreeing, another property consultant reckons that the NUS indices may begin to taper off for May and show a decline in June, given that these indices cover only completed properties and hence tend to lag the new launches market, where things have already started to slow over the past few weeks.
For April, NUS's price index for non-landed homes in the central region rose at a faster clip over the preceding month than it did for the non-central region.
In the central region, which covers districts 1-4 and 9-11, the index increased 3 per cent, against a 2.1 per cent gain for the non-central region.
However, the year-to-date gain for the non-central region was 6.8 per cent, outpacing a 5 per cent increase in the central region.
The central region index is now 37.8 per cent above the post-financial crisis low in March last year. The appreciation for the non-central region has been at a slower pace of 30.3 per cent over the same period.
Despite the heftier rise in prices in the central region, the flash estimate index for April for the location was still 6.4 per cent shy of the pre-financial crisis peak in November 2007.
In contrast, for the non-central region, the latest index has already surpassed its respective January 2008 pre-crisis peak by 8.7 per cent. As a result, the overall SRPI flash estimate index is now 3 per cent above its November 2007 high.
The central region index is now 37.8 per cent above the post-financial crisis low.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : The Minton sells 180 units over weekend
Business Times - 31 May 2010
The Minton sells 180 units over weekend
Observers say sales below figures achieved during March/April height
By KALPANA RASHIWALA
(SINGAPORE) In a widely watched property release, developer Kheng Leong had sold about 180 units of The Minton condo in Hougang as of 6 pm yesterday.
This is out of a batch of more than 300 units that Kheng Leong has released since last Friday in the 1,145-unit development at Lorong Ah Soo/Hougang Street 11 at an average price of $850 per square foot.
Property agents marketing the project told BT that the sales result, while encouraging, was below what they would have expected during the recent height of the property market in March/April. The peak was prior to the fallout from Europe's economic problems and the Singapore government's announcement in May that it will deliver a bumper land sales programme for the second half of this year to meet hot demand in the residential property market.
A new release like The Minton would have sold closer to 300 units in its first weekend and at about 5-8 per cent higher pricing, said CB Richard Ellis executive director Joseph Tan.
Knight Frank managing director (residential services) Peter Ow, also reckoned the 99-year leasehold project could have sold about 300 units in its initial weekend had it been put on the market a couple of months ago. He said: 'The government land sales announcement has definitely had an impact. When we talk to (potential) buyers, they're now taking a bit longer to decide. They're worried that with the new supply coming up, prices might fall.'
As has been the case with other launches, the most popular units at The Minton's holiday-extended weekend preview were one and two-bedroom units.
Kheng Leong's general manager (property) Luk Kwok Wing said prices of one bedders sold (as of 6 pm yesterday) ranged from about $480,000 to $590,000 per unit. Two bedders cost $750,000 to $870,000. The project also has three and four bedders, penthouses as well as dual-key units.
Buyers were predominantly young Singaporeans, including families. Generally, buyers have HDB addresses, including Hougang, Serangoon and Tampines (all in the north-east part of Singapore).
Mr Luk said buyers were drawn by The Minton's lush landscaping and generous facilities afforded by the large site area of close to half a million square feet.
The Minton will have a 50-metre lap pool, a 20-metre heated pool, a treehouse playground, a tennis court and an air-conditioned badminton hall that doubles as a function room. It will also boast a big library, a sky-terrace and spas/gyms. The grand clubhouse will accommodate activities like yoga, karaoke and billiards/table soccer, apart from an indoor children's playground.
Kheng Leong, a privately owned property group controlled by the family of banker Wee Cho Yaw, is developing The Minton on the former Minton Rise site that it bought in 2007 through a collective sale.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Huge area: Buyers appear to be drawn by The Minton's lush landscaping and generous facilities afforded by the large site area of close to half a million square feet
The Minton sells 180 units over weekend
Observers say sales below figures achieved during March/April height
By KALPANA RASHIWALA
(SINGAPORE) In a widely watched property release, developer Kheng Leong had sold about 180 units of The Minton condo in Hougang as of 6 pm yesterday.
This is out of a batch of more than 300 units that Kheng Leong has released since last Friday in the 1,145-unit development at Lorong Ah Soo/Hougang Street 11 at an average price of $850 per square foot.
Property agents marketing the project told BT that the sales result, while encouraging, was below what they would have expected during the recent height of the property market in March/April. The peak was prior to the fallout from Europe's economic problems and the Singapore government's announcement in May that it will deliver a bumper land sales programme for the second half of this year to meet hot demand in the residential property market.
A new release like The Minton would have sold closer to 300 units in its first weekend and at about 5-8 per cent higher pricing, said CB Richard Ellis executive director Joseph Tan.
Knight Frank managing director (residential services) Peter Ow, also reckoned the 99-year leasehold project could have sold about 300 units in its initial weekend had it been put on the market a couple of months ago. He said: 'The government land sales announcement has definitely had an impact. When we talk to (potential) buyers, they're now taking a bit longer to decide. They're worried that with the new supply coming up, prices might fall.'
As has been the case with other launches, the most popular units at The Minton's holiday-extended weekend preview were one and two-bedroom units.
Kheng Leong's general manager (property) Luk Kwok Wing said prices of one bedders sold (as of 6 pm yesterday) ranged from about $480,000 to $590,000 per unit. Two bedders cost $750,000 to $870,000. The project also has three and four bedders, penthouses as well as dual-key units.
Buyers were predominantly young Singaporeans, including families. Generally, buyers have HDB addresses, including Hougang, Serangoon and Tampines (all in the north-east part of Singapore).
Mr Luk said buyers were drawn by The Minton's lush landscaping and generous facilities afforded by the large site area of close to half a million square feet.
The Minton will have a 50-metre lap pool, a 20-metre heated pool, a treehouse playground, a tennis court and an air-conditioned badminton hall that doubles as a function room. It will also boast a big library, a sky-terrace and spas/gyms. The grand clubhouse will accommodate activities like yoga, karaoke and billiards/table soccer, apart from an indoor children's playground.
Kheng Leong, a privately owned property group controlled by the family of banker Wee Cho Yaw, is developing The Minton on the former Minton Rise site that it bought in 2007 through a collective sale.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Huge area: Buyers appear to be drawn by The Minton's lush landscaping and generous facilities afforded by the large site area of close to half a million square feet
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