Business Times - 18 Nov 2009
SPH explains thinking behind mall bid
Winning bidders looking ahead at rentals upon lease renewal
(SINGAPORE) Even as the Housing & Development Board yesterday awarded Clementi Mall to a Singapore Press Holdings-led consortium, members of SPH's top management sought to explain the rationale for the bid price, which stockbroking analysts and market watchers have said was too high.
The consortium members are taking a long-term position on the investment and looking at forward rentals at the next lease renewal cycle - instead of just immediate returns when the mall begins operating in the first half of 2011, SPH's management said at media and analyst briefings yesterday.
It also revealed that more than 300 interested parties have registered interest to potentially rent space at the mall.
And the projected fit-out cost will be under $40 million - lower than the $40-50 million that some analysts had assumed.
HDB is building only the mall's core structure and facade, which it is scheduled to hand over in August next year to the joint venture, which will then finish the project and have naming rights for the property.
NTUC FairPrice, which has a 20 per cent stake in the venture, will lease 20,000-25,000 square feet for a supermarket at basement one of the mall. It may also take up additional space for a convenience store.
NTUC Income, which also has a 20 per cent stake, and SPH, the majority shareholder with 60 per cent, may also take up space in the property. The latter is likely to be for a kiosk selling newspapers and magazines.
Clementi Mall - the working name for the 99-year leasehold property - will have an air-conditioned bus interchange on the first level. The mall's third level will be linked to Clementi MRT Station.
SPH's management yesterday explained that the venture's bid valuation was based on stabilised operations after the mall's rental renewal cycle, and enhancing yield over time.
'In other words, when we do our calculations, we are not using the rentals when we start operations. We are actually using after rental renewal cycle, whether it is after three years or six years,' said SPH chief executive officer Alan Chan.
Had SPH used the typical strategy of real estate investment trusts (Reits), which assume say a 5-6 per cent return based on rents when the mall starts operating, it would have led to bids in the $300 million range - where four of the six bids came in for the mall at the close of HDB's tender last Tuesday.
'When you are a Reit, you have to ensure immediate returns. Whereas we are long-term players and we are prepared to place our bets based on forward rentals at the next cycle,' Mr Chan said.
'This is the challenge the bidder is always confronted with: Do you use standard metrics or do you think out of the box?'
The venture hopes to achieve the rentals that are obtained by the best suburban malls in Singapore.
Its winning bid of $541.898 million was the highest of six offers that HDB received for the mall. The winning bid is nearly 42 per cent more than the next highest offer of $382 million.
Earlier, analysts had forecast a valuation for the property - comprising the bid price as well as assuming fit-out costs of $40-50 million - of about $3,000 per square foot of net floor area of retail space.
But SPH management yesterday said that the projected fit-out costs would be under $40 million and hence the valuation would be 'somewhere south of $3,000 psf'.
Along prime Orchard Road, ION Orchard was valued at $3,747 psf of net lettable area as at June 30 this year.
SPH said that it also worked in prospects for potential capital appreciation in the bid price, pointing to its successful track record with Paragon along Orchard Road.
Its valuation has increased from just under $800 million in 1997 to almost $2 billion today. Based on the current market price,
Paragon's yield is well above 4 per cent. The return on equity is above 10 per cent - a result that was achieved over the years, not overnight.
Mr Chan also sought to allay concerns in some quarters that SPH's investment in Clementi Mall could clip dividend payouts to shareholders.
Firstly, SPH's stake in the venture is only 60 per cent - and for which it has enough internal funds to pay, with the rest to be funded through borrowings.
'Secondly, our dividend track record is always a function of recurring earnings. So this investment is not going to affect the dividend track record.'
And when stabilised rental income starts streaming in from Clementi Mall, SPH's recurring earnings will increase, he added.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Wednesday, November 18, 2009
New sites will ensure sufficient housing
Nov 17, 2009 - PropertyGuru.com.sg
The Singapore government assured last week that there is sufficient residential supply in the country, so home buyers need not rush. Following this announcement was the government’s decision to sell eight residential sites in the first half of 2010.
The eight sites are located in non-city areas such as Tampines, Simei and Choa Chu Kang.
The government has several reserve lists for residential sites available for sale, but only if property developers commit to a minimum bid acceptable by the government.
The supply comes from the government’s twice-yearly land sales programme, giving home buyers more choices.
HDB upgraders for instance, will be happy to learn that the latest sales programme in the first-half of 2010 will see a slow progress on suburban residential sites.
Home owners living in the vicinity of the eight sites can look forward to new projects in the next few years and if the economy continues to improve, they can also expect an increase in the value of their homes when new projects are launched for sale.
“Generally, when a new project is launched, it will have a bearing on the developments in the vicinity,” said Ms Tay Huey Ying, research and advisory director for Colliers International.
“If a project is launched at bullish price levels, it could push up the prices of surrounding developments, though a lot can depend on project attributes,” she added.
Nicholas Mak, a Ngee Ann Polytechnic lecturer explained, “In a buoyant market, developers would launch at a higher price on a per sq ft basis than surrounding projects. In a less buoyant market, the premium would be smaller.”
He added, “The launch price does give some support to the asking prices of individual sellers in the area.”
The largest site is located in Tampines, which can hold a total of 605 units.
The 200-unit residential site in Choa Chu Kang Road is situated above the Ten Mile Junction and Bukit Panjang LRT Depot, near the upcoming Bukit Panjang MRT station.
The residential site near the Sembawang Shopping Centre can also hold 290 units.
“As Singapore becomes more populated, characterised by a relatively fast-paced lifestyle, accessibility and proximity to mass transit stations will be a key consideration for future home buyers,” said Leonard Tay, director of CBRE Research.
On the reserve list, the Bartley Road site, near the Bartley MRT station, will have 500 residential units while the Stirling Road site, near the Queenstown MRT station, will have 405 units.
In addition, the Singapore government is ensuring the availability of 10,550 private residential units—the largest residential supply since 2001.
However, the effect of these sites will not be felt immediately as it would take 1 ½ years before the eight projects can be launched, Mr. Mak said.
The Singapore government assured last week that there is sufficient residential supply in the country, so home buyers need not rush. Following this announcement was the government’s decision to sell eight residential sites in the first half of 2010.
The eight sites are located in non-city areas such as Tampines, Simei and Choa Chu Kang.
The government has several reserve lists for residential sites available for sale, but only if property developers commit to a minimum bid acceptable by the government.
The supply comes from the government’s twice-yearly land sales programme, giving home buyers more choices.
HDB upgraders for instance, will be happy to learn that the latest sales programme in the first-half of 2010 will see a slow progress on suburban residential sites.
Home owners living in the vicinity of the eight sites can look forward to new projects in the next few years and if the economy continues to improve, they can also expect an increase in the value of their homes when new projects are launched for sale.
“Generally, when a new project is launched, it will have a bearing on the developments in the vicinity,” said Ms Tay Huey Ying, research and advisory director for Colliers International.
“If a project is launched at bullish price levels, it could push up the prices of surrounding developments, though a lot can depend on project attributes,” she added.
Nicholas Mak, a Ngee Ann Polytechnic lecturer explained, “In a buoyant market, developers would launch at a higher price on a per sq ft basis than surrounding projects. In a less buoyant market, the premium would be smaller.”
He added, “The launch price does give some support to the asking prices of individual sellers in the area.”
The largest site is located in Tampines, which can hold a total of 605 units.
The 200-unit residential site in Choa Chu Kang Road is situated above the Ten Mile Junction and Bukit Panjang LRT Depot, near the upcoming Bukit Panjang MRT station.
The residential site near the Sembawang Shopping Centre can also hold 290 units.
“As Singapore becomes more populated, characterised by a relatively fast-paced lifestyle, accessibility and proximity to mass transit stations will be a key consideration for future home buyers,” said Leonard Tay, director of CBRE Research.
On the reserve list, the Bartley Road site, near the Bartley MRT station, will have 500 residential units while the Stirling Road site, near the Queenstown MRT station, will have 405 units.
In addition, the Singapore government is ensuring the availability of 10,550 private residential units—the largest residential supply since 2001.
However, the effect of these sites will not be felt immediately as it would take 1 ½ years before the eight projects can be launched, Mr. Mak said.
TODAYS : IRs not a threat
'IRs not a threat'
by Neo Chai Chin 05:55 AM Nov 18, 2009
Whether or not the integrated resorts will pose a serious threat to them, Orchard Road retailers are not "awfully worried". So said Ms Lau Chuen Wei, executive director of the Singapore Retailers Association.
That some of them - from luxury labels to local brands - will open outlets at the Marina Bay Sands (MBS) is a sign that "there is space in the retail landscape", she told MediaCorp.
Also, Orchard Road and MBS cater to different crowds - the former for Singaporeans looking for a hangout, and the latter to a "captive audience" already at the resort, she said.
Resorts World at Sentosa (RWS) has been reported as saying it will offer a "niche yet refreshing retail experience" with offerings like Universal Studios Singapore theme park merchandise.
But Ms Lau said the upcoming pedestrian walkway linking Sentosa with Vivocity Promenade indicates that RWS "are quite happy for their visitors to go across the waters to Vivocity
by Neo Chai Chin 05:55 AM Nov 18, 2009
Whether or not the integrated resorts will pose a serious threat to them, Orchard Road retailers are not "awfully worried". So said Ms Lau Chuen Wei, executive director of the Singapore Retailers Association.
That some of them - from luxury labels to local brands - will open outlets at the Marina Bay Sands (MBS) is a sign that "there is space in the retail landscape", she told MediaCorp.
Also, Orchard Road and MBS cater to different crowds - the former for Singaporeans looking for a hangout, and the latter to a "captive audience" already at the resort, she said.
Resorts World at Sentosa (RWS) has been reported as saying it will offer a "niche yet refreshing retail experience" with offerings like Universal Studios Singapore theme park merchandise.
But Ms Lau said the upcoming pedestrian walkway linking Sentosa with Vivocity Promenade indicates that RWS "are quite happy for their visitors to go across the waters to Vivocity
ST : Capitaland to raise $2.4b
Nov 17, 2009
Capitaland to raise $2.4b
By Joyce Teo PROPERTY CORRESPONDENT
PROPERTY giant Capitaland is spinning off 30 per cent of its stake in CapitaMalls Asia (CMA) to raise about $2.4 billion in one of the biggest listings ever staged in Singapore.
The initial public offering of the huge Asian mall owner, developer and manager opens on Wednesday.
Retail investors will be able to buy into the IPO with shares priced at $2.12 each. The offer closes at noon on Nov 23 with trading expected to start around Nov 25.
The price - below the midpoint of an indicative range of $1.98-$2.39 a share - translates to an implied price-to-book value of 1.55 times.
It is 'rich enough to give CapitaLand a big windfall but yet a fair price to investors', said CapitaLand chief financial officer Olivier Lim.
CapitaLand could reap up to $883 million in pre-tax earnings after the offering, assuming its overallotment is exercised in full. It may recommend a special dividend after the CMA listing, which will still trails the SingTel float in 1993, which raised more than $4 billion.
Capitaland to raise $2.4b
By Joyce Teo PROPERTY CORRESPONDENT
PROPERTY giant Capitaland is spinning off 30 per cent of its stake in CapitaMalls Asia (CMA) to raise about $2.4 billion in one of the biggest listings ever staged in Singapore.
The initial public offering of the huge Asian mall owner, developer and manager opens on Wednesday.
Retail investors will be able to buy into the IPO with shares priced at $2.12 each. The offer closes at noon on Nov 23 with trading expected to start around Nov 25.
The price - below the midpoint of an indicative range of $1.98-$2.39 a share - translates to an implied price-to-book value of 1.55 times.
It is 'rich enough to give CapitaLand a big windfall but yet a fair price to investors', said CapitaLand chief financial officer Olivier Lim.
CapitaLand could reap up to $883 million in pre-tax earnings after the offering, assuming its overallotment is exercised in full. It may recommend a special dividend after the CMA listing, which will still trails the SingTel float in 1993, which raised more than $4 billion.
Tuesday, November 17, 2009
Higher, 95% of flats reserved for first-timers
Nov 17, 2009
Higher, 95% of flats reserved for first-timers
HDB increases their chances of getting a home
By Jessica Cheam
THE Housing Board (HDB) has moved to address mounting concern about inadequate flat supply by upping the first-timer's success rate for getting a flat and by launching more than 1,000 homes for sale in Punggol.
With immediate effect, the Board has increased the number of flats reserved for first-timers at its sales launches from the current level of 90per cent to 95 per cent.
This applies to both its build-to-order (BTO) scheme - which provides the bulk of HDB flats and where units are built when a certain demand is reached - and the sale of balance flat (SBF) exercise, which typically offers ready flats across the island.
Flats offered in the latter exercise are highly popular given that buyers do not have to wait for homes to be built and are given access to a wide variety of locations.
HDB said yesterday its move was designed to 'give greater priority to first-timers, who generally have more urgent housing needs than second-timers'.
'HDB will monitor the demand situation closely and make adjustments where necessary,' it added.
The Board first introduced this scheme for first-timers in August 2007 to prevent them from being crowded out of the then-booming market.
Prior to that, there was no quota and first-timers were balloted along with everyone else.
The scheme also gave a leg-up to applicants who had tried and failed in four or more ballots by favouring them in BTO project ballots. (see below)
Yesterday's move by the HDB is a response to those first-time home buyers who fear missing out on the chance to buy a property because of historically high resale flat prices - they rose 3.8per cent in the first nine months of the year - and a perceived supply shortage.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak, an industry observer, believes the HDB is likely responding to feedback that young couples cannot afford resale flat prices.
'In this case, they are reserving so many flats for first-timers so they can ensure affordability,' said Mr Mak, who added that the HDB's decision might help shift some demand away from the resale market to demand for new flats directly from HDB.
PropNex chief executive Mohamed Ismail does not see the HDB's five-point increase having a major impact on the market, but said it clearly demonstrated that first-timers and not upgraders were being given priority for new flats.
'It is a clear signal that the current concern is to provide a roof for all young couples,' he said.
The HDB yesterday unveiled 1,078 new standard flats for sale at Punggol Sails and Punggol Ripples. The units range from studio apartments to five-room flats and prices range from $65,000 to $377,000.
Punggol Sails offers 279 three-room, 218 four-room and 109 five-room flats, while Punggol Ripples has 130 studio apartments, 157 three-roomers and 185 four-roomers for sale.
Both projects are located along Punggol field, are served by the Punggol MRT and LRT stations, and are near the future Punggol Town Centre.
PropNex's Mr Ismail noted that the typical selling price of the new flats was 10 to 20per cent cheaper than those of comparative resale units in the area.
With the vision for Punggol as Singapore's waterfront town starting to become a reality, flats in the area will become increasingly popular, said Mr Ismail, who expects the projects to be five times over-subscribed.
Home buyers need to submit their applications before the closing date of Nov30.
Including yesterday's sale, HDB has offered 10,800 flats for sale this year. It said that 2,700 more flats will be offered next month in Bukit Panjang, Sembawang and Dawson.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
A leg-up for young couples
YOUNG couples now have a greater chance of securing a flat, with the Housing Board setting aside 95per cent of all its sales exercise - BTO and sales of balance flats - for first-timers.
The HDB's priority scheme was first introduced in August 2007 and, prior to that, no quota existed so first-timers were balloted along with everyone else.
The revised scheme additionally gives a leg-up to applicants who have tried and failed in four or more ballots.
On their fifth attempt they will be accorded one extra chance, with their name being entered for the ballot one more time.
For their sixth try, they get entered two more times, and so on. However, this only applies to BTO projects in non-mature areas.
Couples already receive a helping hand under the Married Child Priority Scheme, which gives them double the chance during the balloting.
The vision for Punggol as Singapore's waterfront town is becoming a reality and flats will become increasingly popular, it is said. -- ARTIST'S IMPRESSION: HDB
Higher, 95% of flats reserved for first-timers
HDB increases their chances of getting a home
By Jessica Cheam
THE Housing Board (HDB) has moved to address mounting concern about inadequate flat supply by upping the first-timer's success rate for getting a flat and by launching more than 1,000 homes for sale in Punggol.
With immediate effect, the Board has increased the number of flats reserved for first-timers at its sales launches from the current level of 90per cent to 95 per cent.
This applies to both its build-to-order (BTO) scheme - which provides the bulk of HDB flats and where units are built when a certain demand is reached - and the sale of balance flat (SBF) exercise, which typically offers ready flats across the island.
Flats offered in the latter exercise are highly popular given that buyers do not have to wait for homes to be built and are given access to a wide variety of locations.
HDB said yesterday its move was designed to 'give greater priority to first-timers, who generally have more urgent housing needs than second-timers'.
'HDB will monitor the demand situation closely and make adjustments where necessary,' it added.
The Board first introduced this scheme for first-timers in August 2007 to prevent them from being crowded out of the then-booming market.
Prior to that, there was no quota and first-timers were balloted along with everyone else.
The scheme also gave a leg-up to applicants who had tried and failed in four or more ballots by favouring them in BTO project ballots. (see below)
Yesterday's move by the HDB is a response to those first-time home buyers who fear missing out on the chance to buy a property because of historically high resale flat prices - they rose 3.8per cent in the first nine months of the year - and a perceived supply shortage.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak, an industry observer, believes the HDB is likely responding to feedback that young couples cannot afford resale flat prices.
'In this case, they are reserving so many flats for first-timers so they can ensure affordability,' said Mr Mak, who added that the HDB's decision might help shift some demand away from the resale market to demand for new flats directly from HDB.
PropNex chief executive Mohamed Ismail does not see the HDB's five-point increase having a major impact on the market, but said it clearly demonstrated that first-timers and not upgraders were being given priority for new flats.
'It is a clear signal that the current concern is to provide a roof for all young couples,' he said.
The HDB yesterday unveiled 1,078 new standard flats for sale at Punggol Sails and Punggol Ripples. The units range from studio apartments to five-room flats and prices range from $65,000 to $377,000.
Punggol Sails offers 279 three-room, 218 four-room and 109 five-room flats, while Punggol Ripples has 130 studio apartments, 157 three-roomers and 185 four-roomers for sale.
Both projects are located along Punggol field, are served by the Punggol MRT and LRT stations, and are near the future Punggol Town Centre.
PropNex's Mr Ismail noted that the typical selling price of the new flats was 10 to 20per cent cheaper than those of comparative resale units in the area.
With the vision for Punggol as Singapore's waterfront town starting to become a reality, flats in the area will become increasingly popular, said Mr Ismail, who expects the projects to be five times over-subscribed.
Home buyers need to submit their applications before the closing date of Nov30.
Including yesterday's sale, HDB has offered 10,800 flats for sale this year. It said that 2,700 more flats will be offered next month in Bukit Panjang, Sembawang and Dawson.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
A leg-up for young couples
YOUNG couples now have a greater chance of securing a flat, with the Housing Board setting aside 95per cent of all its sales exercise - BTO and sales of balance flats - for first-timers.
The HDB's priority scheme was first introduced in August 2007 and, prior to that, no quota existed so first-timers were balloted along with everyone else.
The revised scheme additionally gives a leg-up to applicants who have tried and failed in four or more ballots.
On their fifth attempt they will be accorded one extra chance, with their name being entered for the ballot one more time.
For their sixth try, they get entered two more times, and so on. However, this only applies to BTO projects in non-mature areas.
Couples already receive a helping hand under the Married Child Priority Scheme, which gives them double the chance during the balloting.
The vision for Punggol as Singapore's waterfront town is becoming a reality and flats will become increasingly popular, it is said. -- ARTIST'S IMPRESSION: HDB
Sales of new private homes down again
Nov 17, 2009
Sales of new private homes down again
Number of units launched, sold in Oct lowest since Jan; Govt's cooling measures taking effect
By Joyce Teo
SALES of new private homes plunged last month to just 811 units - well down on September's numbers and a clear sign that the Government's cooling measures have taken hold.
The decline also marks the third straight monthly contraction since August.
October's sales were down from the 1,143 units sold in September and 1,805 in August, although they were still about six times the sales done in the same month last year, according to the Urban Redevelopment Authority yesterday.
'Although the number of units launched and sold in October was the lowest since January, it should not be treated with alarm as it reflects that the property market is subsiding into a more sustainable level of activity,' said DTZ's head of Southeast Asia research Chua Chor Hoon.
October's sales came close to the average monthly take-up of 845 units since June 2007, she said.
Property experts were already expecting the slump as sales at launches started to slow down not long after the Government introduced measures to calm the market in mid-September.
Price resistance has also set in, particularly for mass market homes, they say.
Developers launched only 566 units last month, a far cry from the 1,413 launched in September.
About 60 per cent of the launches were prime projects, which accounted for slightly more than one-third of the sales. There were no new major mass market launches.
PropNex chief executive Mohamed Ismail believes the pent-up demand that accumulated during the financial crisis has largely been met. He noted that 66 per cent of the units sold last month were mid-range homes that went for between $1,000 psf and $1,999 psf - a result of developers selling smaller units at higher prices per square foot.
One of last month's best sellers was Far East Organization's 278-unit Cyan in Bukit Timah Road. It launched 90 units and sold 81 at a median price of $1,821 per sq ft.
Last month's figure brings sales so far this year to 13,639 units, just 8 per cent short of the record 14,811 units sold in 2007. Total sales of new homes will likely surpass the 2007 total, experts say.
Jones Lang LaSalle said the Government's measures to curb speculative behaviour seem to have taken effect, going by sub-sales, which fell to 7.9 per cent of total sales last month from the 12 per cent recorded in September.
Still, the low level of new launches last month suggests that developers were more affected by the measures than buyers, say experts.
'While one would expect developers to capitalise on the buying trend, they were surprisingly more cautious and anticipated a bigger demand pull-back,' said Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang.
It suggests the market could be 'closing in on its peak as developers are no longer as confident of the sustainability of the current market movement', he said.
New home sales are expected to slow this month and next to between 600 and 700 units. Dr Chua expects sales of non- landed homes to contract by a further 10 per cent to 20 per cent.
But if the rise in house prices continues to surge ahead of economic fundamentals, tougher anti-speculative measures could be introduced. These could include a capital gains tax, perhaps for those who flip within a two-year period of the first purchase, added Dr Chua. Ngee Ann Polytechnic lecturer Nicholas Mak believes the next wave of buying may come when the two integrated resorts open next year.
Home prices, said CBRE Research executive director Li Hiaw Ho, are likely to 'hold firm at current levels', though the imminent launch of Marina Bay Suites will give a good indication of how the prime and high-end segment will perform.
joyceteo@sph.com.sg
An artist's impression of Lincoln Suites in Khiang Guan Avenue in the Newton area.
Sales of new private homes down again
Number of units launched, sold in Oct lowest since Jan; Govt's cooling measures taking effect
By Joyce Teo
SALES of new private homes plunged last month to just 811 units - well down on September's numbers and a clear sign that the Government's cooling measures have taken hold.
The decline also marks the third straight monthly contraction since August.
October's sales were down from the 1,143 units sold in September and 1,805 in August, although they were still about six times the sales done in the same month last year, according to the Urban Redevelopment Authority yesterday.
'Although the number of units launched and sold in October was the lowest since January, it should not be treated with alarm as it reflects that the property market is subsiding into a more sustainable level of activity,' said DTZ's head of Southeast Asia research Chua Chor Hoon.
October's sales came close to the average monthly take-up of 845 units since June 2007, she said.
Property experts were already expecting the slump as sales at launches started to slow down not long after the Government introduced measures to calm the market in mid-September.
Price resistance has also set in, particularly for mass market homes, they say.
Developers launched only 566 units last month, a far cry from the 1,413 launched in September.
About 60 per cent of the launches were prime projects, which accounted for slightly more than one-third of the sales. There were no new major mass market launches.
PropNex chief executive Mohamed Ismail believes the pent-up demand that accumulated during the financial crisis has largely been met. He noted that 66 per cent of the units sold last month were mid-range homes that went for between $1,000 psf and $1,999 psf - a result of developers selling smaller units at higher prices per square foot.
One of last month's best sellers was Far East Organization's 278-unit Cyan in Bukit Timah Road. It launched 90 units and sold 81 at a median price of $1,821 per sq ft.
Last month's figure brings sales so far this year to 13,639 units, just 8 per cent short of the record 14,811 units sold in 2007. Total sales of new homes will likely surpass the 2007 total, experts say.
Jones Lang LaSalle said the Government's measures to curb speculative behaviour seem to have taken effect, going by sub-sales, which fell to 7.9 per cent of total sales last month from the 12 per cent recorded in September.
Still, the low level of new launches last month suggests that developers were more affected by the measures than buyers, say experts.
'While one would expect developers to capitalise on the buying trend, they were surprisingly more cautious and anticipated a bigger demand pull-back,' said Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang.
It suggests the market could be 'closing in on its peak as developers are no longer as confident of the sustainability of the current market movement', he said.
New home sales are expected to slow this month and next to between 600 and 700 units. Dr Chua expects sales of non- landed homes to contract by a further 10 per cent to 20 per cent.
But if the rise in house prices continues to surge ahead of economic fundamentals, tougher anti-speculative measures could be introduced. These could include a capital gains tax, perhaps for those who flip within a two-year period of the first purchase, added Dr Chua. Ngee Ann Polytechnic lecturer Nicholas Mak believes the next wave of buying may come when the two integrated resorts open next year.
Home prices, said CBRE Research executive director Li Hiaw Ho, are likely to 'hold firm at current levels', though the imminent launch of Marina Bay Suites will give a good indication of how the prime and high-end segment will perform.
joyceteo@sph.com.sg
An artist's impression of Lincoln Suites in Khiang Guan Avenue in the Newton area.
Property agent jailed for acting as fall guy
Nov 17, 2009
Property agent jailed for acting as fall guy
A PROPERTY agent who took the rap for an unlicensed driver's offence of running a red light was jailed for three months yesterday.
Leung Man Kwan, 34, accepted $1,000 to take the fall for Ms Evangeline Tay Su Ann, 21, who took a Bulgarian business manager's car out for a spin without his consent while he was abroad in January last year.
Leung is appealing against her sentence.
Ms Tay, who had been staying in the house belonging to the owner of the car, skipped the lights in Lornie Road. She knew she had been caught as she saw the camera flash go off.
Worried because she was driving without a licence and without the permission of the car's owner, she turned to friends for help.
One of them, former police officer Kelvin Choo Yew Beng, 38, secured Leung's complicity for $1,000.
When the car's owner received a summons asking for the driver's particulars, he asked Ms Tay about the offence. She gave him Leung's particulars.
Deputy Public Prosecutor Andrew Tan said one reason Leung agreed to take the fall was her own driving record: At the time, she had pending drink driving-related charges, so the extra demerit point for running a red light would have been of little consequence to her.
In November last year, she was jailed for two months, fined $4,800 and banned from driving for 18 months for hurting a public servant, drink driving, failing to give a breath specimen and disorderly behaviour.
Neither Ms Tay nor Mr Choo have been charged over their roles in the bribery.
It is not known whether Ms Tay has been charged over her traffic offences.
Leung could have been jailed for up to seven years and fined for subverting the course of justice.
Property agent jailed for acting as fall guy
A PROPERTY agent who took the rap for an unlicensed driver's offence of running a red light was jailed for three months yesterday.
Leung Man Kwan, 34, accepted $1,000 to take the fall for Ms Evangeline Tay Su Ann, 21, who took a Bulgarian business manager's car out for a spin without his consent while he was abroad in January last year.
Leung is appealing against her sentence.
Ms Tay, who had been staying in the house belonging to the owner of the car, skipped the lights in Lornie Road. She knew she had been caught as she saw the camera flash go off.
Worried because she was driving without a licence and without the permission of the car's owner, she turned to friends for help.
One of them, former police officer Kelvin Choo Yew Beng, 38, secured Leung's complicity for $1,000.
When the car's owner received a summons asking for the driver's particulars, he asked Ms Tay about the offence. She gave him Leung's particulars.
Deputy Public Prosecutor Andrew Tan said one reason Leung agreed to take the fall was her own driving record: At the time, she had pending drink driving-related charges, so the extra demerit point for running a red light would have been of little consequence to her.
In November last year, she was jailed for two months, fined $4,800 and banned from driving for 18 months for hurting a public servant, drink driving, failing to give a breath specimen and disorderly behaviour.
Neither Ms Tay nor Mr Choo have been charged over their roles in the bribery.
It is not known whether Ms Tay has been charged over her traffic offences.
Leung could have been jailed for up to seven years and fined for subverting the course of justice.
More HDB flats in Punggol with two new BTO projects
Business Times - 17 Nov 2009
More HDB flats in Punggol with two new BTO projects
Punggol Sails and Punggol Ripples will have a total of 1,078 new flats
By UMA SHANKARI
THE Housing & Development Board (HDB) yesterday launched new build-to- order (BTO) projects at Punggol with a total of 1,078 flats.
And four more BTO projects - with 2,700 flats in all - can be expected next month in Bukit Panjang, Sembawang and Dawson.
Including the two latest Punggol projects - Punggol Sails and Punggol Ripples - HDB has offered about 10,800 flats under BTO and other exercises so far this year. Last month HDB announced plans to ramp up the supply of new flats to meet increased demand for public housing.
HDB also said that with effect from this BTO exercise, 95 per cent of the supply of two, three, four and 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,' it said.
Punggol Sails and Punggol Ripples will have 130 studio apartments and 436 three-room, 403 four-room and 109 five-room flats.
Studio apartments will be priced from $65,000 to $92,000; three-room flats will sell for $158,000 to $185,000; four-room flats for $249,000 to $305,000; and five-room flats for $332,000 to $377,000.
PropNex chief executive Mohamed Ismail expects strong interest in the new projects.
'Plans are already underway to construct the 4.9km Punggol Promenade linking the estate's two activity clusters,' he said. 'As part of the Punggol 21 Master Plan, this will enliven the area and increase the value of homes there.'
He expects the two BTO projects to be at least five times subscribed on the back of the increasing HDB resale price index.
BTO projects are typically cheaper than resale flats. The typical selling prices of new units are 10-20 per cent cheaper than those of comparable resale units in the area, Mr Ismail said.
HDB expects first-time flat buyers will need to use 23-27 per cent of their monthly household income to meet their monthly loan commitments for these two projects.
The agency says this is well below the 30 per cent international benchmark for affordable housing.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
More HDB flats in Punggol with two new BTO projects
Punggol Sails and Punggol Ripples will have a total of 1,078 new flats
By UMA SHANKARI
THE Housing & Development Board (HDB) yesterday launched new build-to- order (BTO) projects at Punggol with a total of 1,078 flats.
And four more BTO projects - with 2,700 flats in all - can be expected next month in Bukit Panjang, Sembawang and Dawson.
Including the two latest Punggol projects - Punggol Sails and Punggol Ripples - HDB has offered about 10,800 flats under BTO and other exercises so far this year. Last month HDB announced plans to ramp up the supply of new flats to meet increased demand for public housing.
HDB also said that with effect from this BTO exercise, 95 per cent of the supply of two, three, four and 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,' it said.
Punggol Sails and Punggol Ripples will have 130 studio apartments and 436 three-room, 403 four-room and 109 five-room flats.
Studio apartments will be priced from $65,000 to $92,000; three-room flats will sell for $158,000 to $185,000; four-room flats for $249,000 to $305,000; and five-room flats for $332,000 to $377,000.
PropNex chief executive Mohamed Ismail expects strong interest in the new projects.
'Plans are already underway to construct the 4.9km Punggol Promenade linking the estate's two activity clusters,' he said. 'As part of the Punggol 21 Master Plan, this will enliven the area and increase the value of homes there.'
He expects the two BTO projects to be at least five times subscribed on the back of the increasing HDB resale price index.
BTO projects are typically cheaper than resale flats. The typical selling prices of new units are 10-20 per cent cheaper than those of comparable resale units in the area, Mr Ismail said.
HDB expects first-time flat buyers will need to use 23-27 per cent of their monthly household income to meet their monthly loan commitments for these two projects.
The agency says this is well below the 30 per cent international benchmark for affordable housing.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CPF interest rate stays at 2.5% in Q1 next year
Business Times - 17 Nov 2009
CPF interest rate stays at 2.5% in Q1 next year
CENTRAL Provident Fund members will continue to receive 2.5 per cent a year interest on savings in their Ordinary Account for the first three months of next year.
The CPF board said yesterday the interest rate as derived from those of the major local banks from August to October this year worked out to 0.42 per cent a year. But interest of 2.5 per cent will be paid, as this is the minimum rate provided for under the CPF Act.
With the Housing & Development Board, the CPF Board also said the concessionary interest rate for HDB mortgage loans will remain at 2.6 per cent a year from January to March next year.
For the Medisave, Special and Retirement accounts, the interest rate will be announced in December, after the 12-month average yield of the 10-year Singapore Government Security has been computed.
The CPF interest rate for the Special, Medisave and Retirement Accounts is pegged at one per cent above the yield rate. The current rate of 4 per cent for the October-December period will be kept as the floor until Dec 31 next year, to 'help members adjust to this floating rate'. In addition, an extra one per cent interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the Ordinary Account.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CPF interest rate stays at 2.5% in Q1 next year
CENTRAL Provident Fund members will continue to receive 2.5 per cent a year interest on savings in their Ordinary Account for the first three months of next year.
The CPF board said yesterday the interest rate as derived from those of the major local banks from August to October this year worked out to 0.42 per cent a year. But interest of 2.5 per cent will be paid, as this is the minimum rate provided for under the CPF Act.
With the Housing & Development Board, the CPF Board also said the concessionary interest rate for HDB mortgage loans will remain at 2.6 per cent a year from January to March next year.
For the Medisave, Special and Retirement accounts, the interest rate will be announced in December, after the 12-month average yield of the 10-year Singapore Government Security has been computed.
The CPF interest rate for the Special, Medisave and Retirement Accounts is pegged at one per cent above the yield rate. The current rate of 4 per cent for the October-December period will be kept as the floor until Dec 31 next year, to 'help members adjust to this floating rate'. In addition, an extra one per cent interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the Ordinary Account.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
HSR to list on SGX via reverse takeover
Business Times - 17 Nov 2009
HSR to list on SGX via reverse takeover
The property firm's owners will sell their entire stakeholding to Catalist-listed Wepco for $40m
By UMA SHANKARI
PROPERTY agency HSR International Realtors said yesterday it plans to list on Singapore Exchange (SGX) through a reverse takeover (RTO).
Husband-and-wife team Patrick Liew and Kellie Lim, who own 100 per cent of HSR, will sell their entire stakeholding to Catalist-listed Wepco Ltd for $40 million.
Wepco now provides electroplating services to the electronics, automotive, aerospace and medical industries. But once the RTO is completed, it will focus on real estate.
The company is likely to be renamed and re-branded. It will also apply for a transfer from the Catalist board to the mainboard.
Established in 1981, HSR is one of the largest homegrown real estate agencies in Singapore, with more than 7,000 agents listed.
Last year, it had a 32 per cent share of the HDB resale market and 40 per cent of the private residential market, said chief executive Mr Liew, who will head the enlarged Wepco.
HSR reported a drop in 2008 net profit to $1.4 million, from $4.9 million in 2007.
The weaker property market caused revenue to fall to $55.2 million from $80.6 million.
Mr Liew intends to use HSR's listed status to grow the company.
'We see tremendous opportunities for growth in Singapore as well as regionally and globally,' he said.
In particular, HSR is looking to partner other real estate firms in South-east Asia to break into more markets.
It has marketed property in Australia, New Zealand, Malaysia, Canada and the United States, but currently operates mainly in Singapore.
Being a listed company will boost HSR's brand equity and give it more ways to tap the capital markets for growth, Mr Liew said.
Wepco will pay the $40 million to Mr Liew and Ms Lim by issuing 80 million new shares at 50 cents each.
The issue price represents a premium of about 117 per cent over Wepco's closing price of 23 cents last Friday.
Upon completion of the acquisition, Mr Liew and Ms Lim will own 83 per cent of Wepco's enlarged share capital.
Wepco said that in the past few years many of key customers have shifted their operations overseas, resulting in a substantial loss of revenue.
This, plus increased raw material prices and other operating costs, has had a substantial negative impact on profitability, Wepco said. 'While the company continues to strive for high growth in its current business, the directors are of the opinion that in view of the challenging business climate in which the group operates, there is a need to look for other business opportunities to increase shareholders' value,' it said.
Wepco's stock gained 10 cents to close at 33 cents yesterday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
HSR to list on SGX via reverse takeover
The property firm's owners will sell their entire stakeholding to Catalist-listed Wepco for $40m
By UMA SHANKARI
PROPERTY agency HSR International Realtors said yesterday it plans to list on Singapore Exchange (SGX) through a reverse takeover (RTO).
Husband-and-wife team Patrick Liew and Kellie Lim, who own 100 per cent of HSR, will sell their entire stakeholding to Catalist-listed Wepco Ltd for $40 million.
Wepco now provides electroplating services to the electronics, automotive, aerospace and medical industries. But once the RTO is completed, it will focus on real estate.
The company is likely to be renamed and re-branded. It will also apply for a transfer from the Catalist board to the mainboard.
Established in 1981, HSR is one of the largest homegrown real estate agencies in Singapore, with more than 7,000 agents listed.
Last year, it had a 32 per cent share of the HDB resale market and 40 per cent of the private residential market, said chief executive Mr Liew, who will head the enlarged Wepco.
HSR reported a drop in 2008 net profit to $1.4 million, from $4.9 million in 2007.
The weaker property market caused revenue to fall to $55.2 million from $80.6 million.
Mr Liew intends to use HSR's listed status to grow the company.
'We see tremendous opportunities for growth in Singapore as well as regionally and globally,' he said.
In particular, HSR is looking to partner other real estate firms in South-east Asia to break into more markets.
It has marketed property in Australia, New Zealand, Malaysia, Canada and the United States, but currently operates mainly in Singapore.
Being a listed company will boost HSR's brand equity and give it more ways to tap the capital markets for growth, Mr Liew said.
Wepco will pay the $40 million to Mr Liew and Ms Lim by issuing 80 million new shares at 50 cents each.
The issue price represents a premium of about 117 per cent over Wepco's closing price of 23 cents last Friday.
Upon completion of the acquisition, Mr Liew and Ms Lim will own 83 per cent of Wepco's enlarged share capital.
Wepco said that in the past few years many of key customers have shifted their operations overseas, resulting in a substantial loss of revenue.
This, plus increased raw material prices and other operating costs, has had a substantial negative impact on profitability, Wepco said. 'While the company continues to strive for high growth in its current business, the directors are of the opinion that in view of the challenging business climate in which the group operates, there is a need to look for other business opportunities to increase shareholders' value,' it said.
Wepco's stock gained 10 cents to close at 33 cents yesterday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Oct home sales dip, but prime area defies mood of caution
Business Times - 17 Nov 2009
Oct home sales dip, but prime area defies mood of caution
By KALPANA RASHIWALA
(SINGAPORE) The number of private homes that developers launched and sold in October slowed to their lowest levels since housing sales began their revival in February, according to latest official figures. While the outcome was expected, the big question is how long it will take for home sales to rev up again.
Buyers, especially in the price-sensitive mass-market segment, had begun to be fatigued by price increases in the third quarter - even before the government acted on Sept 14 to cool the market. Developers are also running out of mass-market projects which are launch-ready.
'Everybody's more cautious now,' said Knight Frank chairman Tan Tiong Cheng, summing up the current mood among buyers and developers.
DTZ executive director (consulting) Ong Choon Fah said: 'Buying is likely to continue to be slow for the rest of the year. There's not much to launch; and people are away. Activity will probably return after Chinese New Year.'
While developers of a few projects are expected to proceed with launches soon - including Marina Bay Suites and City Developments's new condo on Thomson Road - others have decided to postpone their launches until Q1 next year or even later, when they hope there will be clearer signs confirming the recovery in the Singapore economy that will see buyers emerging from the sidelines again.
Data released by Urban Redevelopment Authority yesterday showed that developers sold 811 private homes in October, down 29 per cent from September's sales of 1,143 homes. This is the third consecutive monthly decline after home sales peaked at 2,772 units in July.
In the first 10 months of this year, developers have sold 13,639 units. Views in the market are mixed whether developers will manage to sell another 1,172 units in the final two months of 2009 to match the record of 14,811 units in 2007.
The 566 units developers launched in October was 60 per cent lower than in the previous month.
The Core Central Region (CCR) - where higher-priced homes are located - fared relatively better in October than the Rest of Central Region (RCR) and Outside Central Region (OCR).
CCR saw a doubling in sales from 152 units in September to 311 units in October; the number of private homes launched in the region also increased 67 per cent over the same period.
In contrast, the number of units launched as well as sold by developers fell in the other two regions. For instance, the number of homes sold in OCR fell 55.2 per cent month on month to 251 units in October. And the number of homes launched in RCR declined to just 40 units in October from 631 in September.
Last month, a total of 250 units were sold in the $1,500 psf to $2,000 psf range, accounting for 31 per cent of total sales in October and representing a big jump from the 92 units sold in this price range in September, Colliers International research director Tay Huey Ying noted. 'This shows that as of October, filtering-up of demand from the mass-market to the high-end has not been derailed by the September cooling measures,' she added.
CB Richard Ellis executive director Li Hiaw Ho noted that interest in luxury projects continued in October despite the slowdown felt in the rest of the market. ' A unit at Boulevard Vue sold at $4,150 psf; a unit of Seven Palms fetched $3,429 psf in October after six units were sold in September at $3,091 to $3,353 psf. Over at Nassim Park Residences, five units were sold last month at a median price of $3,089 psf following the sales of nine units in Q3 at $2,800 to $3,450 psf,' he added.
Jones Lang LaSalle's head of SE Asia research Chua Yang Liang said the impact of the September announcement was felt most in OCR and RCR as these markets were driven mostly by HDB upgraders who are more sentiment driven.
October's top-selling project was Far East Organization's Cyan at Bukit Timah (81 units transacted at a median price of $1,821). Other chart toppers in CCR last month included Trilight (58 units) and Lincoln Suites (53 units) - both in the Newton area.
In RCR, the top sellers included Suites @ Guillemard (66 units) and City Loft (40 units). Both projects featured shoebox units. In OCR, sales were contributed mainly by Hundred Trees in West Coast (52 units) and Mi Casa in Choa Chu Kang (43 units), noted Savills Singapore.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Oct home sales dip, but prime area defies mood of caution
By KALPANA RASHIWALA
(SINGAPORE) The number of private homes that developers launched and sold in October slowed to their lowest levels since housing sales began their revival in February, according to latest official figures. While the outcome was expected, the big question is how long it will take for home sales to rev up again.
Buyers, especially in the price-sensitive mass-market segment, had begun to be fatigued by price increases in the third quarter - even before the government acted on Sept 14 to cool the market. Developers are also running out of mass-market projects which are launch-ready.
'Everybody's more cautious now,' said Knight Frank chairman Tan Tiong Cheng, summing up the current mood among buyers and developers.
DTZ executive director (consulting) Ong Choon Fah said: 'Buying is likely to continue to be slow for the rest of the year. There's not much to launch; and people are away. Activity will probably return after Chinese New Year.'
While developers of a few projects are expected to proceed with launches soon - including Marina Bay Suites and City Developments's new condo on Thomson Road - others have decided to postpone their launches until Q1 next year or even later, when they hope there will be clearer signs confirming the recovery in the Singapore economy that will see buyers emerging from the sidelines again.
Data released by Urban Redevelopment Authority yesterday showed that developers sold 811 private homes in October, down 29 per cent from September's sales of 1,143 homes. This is the third consecutive monthly decline after home sales peaked at 2,772 units in July.
In the first 10 months of this year, developers have sold 13,639 units. Views in the market are mixed whether developers will manage to sell another 1,172 units in the final two months of 2009 to match the record of 14,811 units in 2007.
The 566 units developers launched in October was 60 per cent lower than in the previous month.
The Core Central Region (CCR) - where higher-priced homes are located - fared relatively better in October than the Rest of Central Region (RCR) and Outside Central Region (OCR).
CCR saw a doubling in sales from 152 units in September to 311 units in October; the number of private homes launched in the region also increased 67 per cent over the same period.
In contrast, the number of units launched as well as sold by developers fell in the other two regions. For instance, the number of homes sold in OCR fell 55.2 per cent month on month to 251 units in October. And the number of homes launched in RCR declined to just 40 units in October from 631 in September.
Last month, a total of 250 units were sold in the $1,500 psf to $2,000 psf range, accounting for 31 per cent of total sales in October and representing a big jump from the 92 units sold in this price range in September, Colliers International research director Tay Huey Ying noted. 'This shows that as of October, filtering-up of demand from the mass-market to the high-end has not been derailed by the September cooling measures,' she added.
CB Richard Ellis executive director Li Hiaw Ho noted that interest in luxury projects continued in October despite the slowdown felt in the rest of the market. ' A unit at Boulevard Vue sold at $4,150 psf; a unit of Seven Palms fetched $3,429 psf in October after six units were sold in September at $3,091 to $3,353 psf. Over at Nassim Park Residences, five units were sold last month at a median price of $3,089 psf following the sales of nine units in Q3 at $2,800 to $3,450 psf,' he added.
Jones Lang LaSalle's head of SE Asia research Chua Yang Liang said the impact of the September announcement was felt most in OCR and RCR as these markets were driven mostly by HDB upgraders who are more sentiment driven.
October's top-selling project was Far East Organization's Cyan at Bukit Timah (81 units transacted at a median price of $1,821). Other chart toppers in CCR last month included Trilight (58 units) and Lincoln Suites (53 units) - both in the Newton area.
In RCR, the top sellers included Suites @ Guillemard (66 units) and City Loft (40 units). Both projects featured shoebox units. In OCR, sales were contributed mainly by Hundred Trees in West Coast (52 units) and Mi Casa in Choa Chu Kang (43 units), noted Savills Singapore.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Monday, November 16, 2009
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
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
(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.
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.
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.
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.
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.
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
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
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
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