HDB resale flat prices up 3.8 per cent in Q2 this year
05:55 AM Jul 02, 2010
by Joanne Chan
SINGAPORE - Prices of Housing and Development Board resale flats continued to climb in the second quarter in the wake of Singapore's economic recovery.
In the latest flash estimates for the second quarter of this year, HDB resale prices rose 3.8 per cent. While the market is showing signs of slowing down, more time is needed before the full impact of Government measures aimed at raising supply could be felt, said analysts.
After stumbling in the middle of last year due to the recession, prices have since registered continuous growth. HDB resale prices rose for a fifth consecutive quarter and housing agents said the increase was due to rising cash-over-valuations (COVs).
PropNex, which handles about 30 per cent of HDB resale transactions, said the median COV has gone up to $30,000 in the second quarter.
The overall median COV was $25,000 in the first quarter, said the HDB.
Another major player in the resale market, ERA, also said the COV had risen by $5,000 in the second quarter.
Media advertising executive Ellena Tan, 25, recently bought a five-room flat in Punggol and had to fork out $30,000 as COV. She said: "It's a very good deal. There are home owners asking for even more ridiculous amounts, such as $50,000 and $65,000!"
ERA's associate director of Asia-Pacific, Mr Eugene Lim, said the Government's move to raise supply will have some impact on the market, but it would take time.
"New flats do not impact people who have immediate housing needs. For example, the upgraders, or those that are PRs, they can only look at the resale market."
Ngee Ann Polytechnic Real Estate Lecturer, Mr Nicholas Mak, said it can take up to a year before prices start to slow down.
Human relations practitioner Kristin Chan, 26, and her fiance want to buy a resale flat near her parents in Bukit Merah, but cannot afford the prices.
" We are looking at BTO flats now as they are more affordable. The flats may be in less-than-ideal locations ... but at least they're cheaper," she said.
On Wednesday, HDB launched about 2,700 Build-To-Order flats in Punggol and Sengkang.
The BTO supply will be supported by units released under the Design, Build and Sell Scheme.
It also put up three sites for tender under the Government Land Sales Programme for the second half of this year.
Analysts expect HDB resale prices to increase by between eight and 15 per cent this year.
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Sunday, July 4, 2010
ST : HDB resale market still going strong
Jul 3, 2010
HDB resale market still going strong
High Q2 sales figures from property firms carrying momentum
By Joyce Teo
THE still-strong but slowing private homes sector is being left behind by the HDB resale market where prices and transaction activity are surging.
Agencies report that the high demand seen early in the year has been sustained with sale numbers staying buoyant - and nudging up prices in the process.
Early HDB estimates for the second quarter showed that resale prices rose 3.8 per cent to yet another record level, following a 2.8 per cent rise in the first.
It marked the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996.
The figures released on Thursday have prompted analysts to revise their full-year estimates for price rises from 5 to 8 per cent to 12 to 15 per cent.
They say the brighter economic outlook is helping to sustain demand.
Dennis Wee Group said its study of HDB data shows that HDB resale transactions were moving briskly in April-May, with about 5,892 resale deals done in the two months. There were 8,484 deals done in the first quarter, according to HDB, which will provide second quarter sales numbers later this month.
PropNex chief executive Mohamed Ismail said his firm expects that the HDB will announce about 9,000 resale flat deals in the second quarter. He believes the momentum will continue: 'We have a 30 per cent market share and have already done 8 per cent more in the second quarter at 2,630 deals.'
ERA Asia-Pacific assistant vice-president Eugene Lim said the April to June period is the most active for HDB resales.
Resale deals done by ERA - which has a market share of around 40 per cent - reached 3,531 in the second quarter. Still, there will not be as many resale deals transacted this year as last year because many more new flats are being launched.
Mr Lim tips sales of 30,000 to 33,000 compared with 37,205 transactions last year - 31 per cent higher than in 2008. This is still a lively pace given that annual resale volumes hovered around 28,500 from 2006 to 2008, he said.
The activity in the HDB resale market is in contrast to the slowdown in the private homes sector, particularly in the prime districts 9, 10 and 11.
Total sales of these prime private homes slowed to 308 units in May, from 723 in April and 688 units in March, said Dennis Wee Group director Chris Koh.
While the high-end market is in a stalemate, there is a pool of buyers for HDB resale flats.
One sign of buying interest is the climbing cash-over-valuation (COV) - cash paid upfront by buyers on top of a flat's valuation.
Mr Lim added: 'Now, buyers and sellers just haggle on the cash portion, without bothering to talk about the valuations.
'It's a chicken and egg situation for many. If they sell to move to a new place, they will ask for high cash in order to pay the other seller.'
Some sellers are raising prices to take advantage of the situation, he said. Mr Lim cited a case where a seller was about to seal a deal with a COV of $28,000 for his $280,000 fourth floor, three-room flat in Clementi.
He rejected it after reading about the 3.8 per cent rise in HDB resale prices in yesterday's papers and is holding out for a better offer, claimed Mr Lim.
joyceteo@sph.com.sg
Early estimates see HDB resale prices rising 3.8 per cent in the second quarter. It marked the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996. -- ST PHOTO: SAMUEL HE
HDB resale market still going strong
High Q2 sales figures from property firms carrying momentum
By Joyce Teo
THE still-strong but slowing private homes sector is being left behind by the HDB resale market where prices and transaction activity are surging.
Agencies report that the high demand seen early in the year has been sustained with sale numbers staying buoyant - and nudging up prices in the process.
Early HDB estimates for the second quarter showed that resale prices rose 3.8 per cent to yet another record level, following a 2.8 per cent rise in the first.
It marked the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996.
The figures released on Thursday have prompted analysts to revise their full-year estimates for price rises from 5 to 8 per cent to 12 to 15 per cent.
They say the brighter economic outlook is helping to sustain demand.
Dennis Wee Group said its study of HDB data shows that HDB resale transactions were moving briskly in April-May, with about 5,892 resale deals done in the two months. There were 8,484 deals done in the first quarter, according to HDB, which will provide second quarter sales numbers later this month.
PropNex chief executive Mohamed Ismail said his firm expects that the HDB will announce about 9,000 resale flat deals in the second quarter. He believes the momentum will continue: 'We have a 30 per cent market share and have already done 8 per cent more in the second quarter at 2,630 deals.'
ERA Asia-Pacific assistant vice-president Eugene Lim said the April to June period is the most active for HDB resales.
Resale deals done by ERA - which has a market share of around 40 per cent - reached 3,531 in the second quarter. Still, there will not be as many resale deals transacted this year as last year because many more new flats are being launched.
Mr Lim tips sales of 30,000 to 33,000 compared with 37,205 transactions last year - 31 per cent higher than in 2008. This is still a lively pace given that annual resale volumes hovered around 28,500 from 2006 to 2008, he said.
The activity in the HDB resale market is in contrast to the slowdown in the private homes sector, particularly in the prime districts 9, 10 and 11.
Total sales of these prime private homes slowed to 308 units in May, from 723 in April and 688 units in March, said Dennis Wee Group director Chris Koh.
While the high-end market is in a stalemate, there is a pool of buyers for HDB resale flats.
One sign of buying interest is the climbing cash-over-valuation (COV) - cash paid upfront by buyers on top of a flat's valuation.
Mr Lim added: 'Now, buyers and sellers just haggle on the cash portion, without bothering to talk about the valuations.
'It's a chicken and egg situation for many. If they sell to move to a new place, they will ask for high cash in order to pay the other seller.'
Some sellers are raising prices to take advantage of the situation, he said. Mr Lim cited a case where a seller was about to seal a deal with a COV of $28,000 for his $280,000 fourth floor, three-room flat in Clementi.
He rejected it after reading about the 3.8 per cent rise in HDB resale prices in yesterday's papers and is holding out for a better offer, claimed Mr Lim.
joyceteo@sph.com.sg
Early estimates see HDB resale prices rising 3.8 per cent in the second quarter. It marked the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996. -- ST PHOTO: SAMUEL HE
Friday, July 2, 2010
ST : Prices of private homes hit new peak
Jul 2, 2010
Prices of private homes hit new peak
Experts expect more rises this year but at a slower rate
By Joyce Teo
PRIVATE home prices in Singapore are now at their highest level ever, eclipsing even the previous 1996 peak.
Official estimates show prices rose a higher-than-expected 5.2 per cent in the second quarter after a 5.6 per cent jump in the first. That means private home prices have risen 11.1 per cent so far this year.
Prices, now 1.5 per cent above the 1996 high, are expected to continue to edge up this year given the positive economic outlook, property experts forecast.
But the rises should moderate as the market is no longer feverish, having slowed to a more sustainable level with many more sites on the way, they said.
CB Richard Ellis' executive director, residential, Mr Joseph Tan, said the ample supply of residential land to be released by the Government will ensure a more stable supply in the longer term. 'As sales momentum becomes less frenzied, home prices will stabilise,' he said.
The Government has lined up a record amount of land for sale in the second half of the year and yesterday released three sites for sale.
One is an executive condominium site in Jurong West which can yield about 460 units. The other two sites are in Miltonia Close and Bedok Town Centre. Together, they can yield about 1,300 homes.
Other data out yesterday showed that Housing Board resale prices rose 3.8 per cent to a new record high in the same period, giving strong support to 'mass market' private homes - generally the less expensive private homes. This came after HDB this week offered 2,696 build-to-order flats in its largest ever single launch.
In the private mass market, buyers such as HDB upgraders are increasingly reluctant to pay sky-high prices, noted Colliers International's director of research and advisory, Ms Tay Huey Ying.
Preliminary estimates released yesterday by the Urban Redevelopment Authority (URA) showed that mass market non- landed private homes rose at a faster clip of 5.7 per cent to a new high, compared with 4.3 per cent in the first quarter.
These prices are now a hefty 14.2 per cent above the previous 2008 peak.
Mr Tan said this could be attributed to higher price levels set at new launches such as Tree House and The Minton, as well as rising prices of resale deals in areas where several government sites had been sold in the past six to nine months.
In central Singapore, non-landed home prices moved up 5.1 per cent, from 4.4 per cent in the first quarter. It was only in city fringe areas that prices of non-landed homes rose at a slower 4.5 per cent, compared with a furious 7.9 per cent first-quarter jump.
'Individual sellers on the resale front, especially those who had bought their properties before the 2007 boom, are now making capital gains in the region of 80-90 per cent,' noted ERA Asia Pacific associate director Eugene Lim.
Since late May, there has been a sales slowdown owing to the euro zone crisis, a lacklustre stock market and high asking prices, but home prices have generally remained firm. Sales of new, private homes halved to 1,078 units in May, from April.
Mr Lim said developers are unlikely to cut prices for new launches to sell more units as most have strong balance sheets.
Still, the slower sales will affect sentiment, said Cushman and Wakefield managing director Donald Han. The pace of price rises will slow down with the resale market first to be hit. The full effects will be felt from this quarter, he said.
For the whole year, property experts are mostly looking at price increases of about 15 per cent. Estimates range from 12 per cent to as much as 20 per cent.
'After the football World Cup season, people will look at whether the West is coping well and Singapore's economic growth and policies. Economists revising higher their growth estimates means that prices are likely to rise,' said Knight Frank chairman Tan Tiong Cheng.
'On the other hand, ample supply has translated to developers being more selective in bidding for sites. Land costs would come off and that would mitigate price rises six months down the road.'
Looking further ahead, Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the risk of a price correction could grow if uncertainties in global financial markets hurt market sentiment, and if the large impending supply of government land leads to a private home glut.
URA will update its second quarter price data in four weeks.
joyceteo@sph.com.sg
Prices of private homes hit new peak
Experts expect more rises this year but at a slower rate
By Joyce Teo
PRIVATE home prices in Singapore are now at their highest level ever, eclipsing even the previous 1996 peak.
Official estimates show prices rose a higher-than-expected 5.2 per cent in the second quarter after a 5.6 per cent jump in the first. That means private home prices have risen 11.1 per cent so far this year.
Prices, now 1.5 per cent above the 1996 high, are expected to continue to edge up this year given the positive economic outlook, property experts forecast.
But the rises should moderate as the market is no longer feverish, having slowed to a more sustainable level with many more sites on the way, they said.
CB Richard Ellis' executive director, residential, Mr Joseph Tan, said the ample supply of residential land to be released by the Government will ensure a more stable supply in the longer term. 'As sales momentum becomes less frenzied, home prices will stabilise,' he said.
The Government has lined up a record amount of land for sale in the second half of the year and yesterday released three sites for sale.
One is an executive condominium site in Jurong West which can yield about 460 units. The other two sites are in Miltonia Close and Bedok Town Centre. Together, they can yield about 1,300 homes.
Other data out yesterday showed that Housing Board resale prices rose 3.8 per cent to a new record high in the same period, giving strong support to 'mass market' private homes - generally the less expensive private homes. This came after HDB this week offered 2,696 build-to-order flats in its largest ever single launch.
In the private mass market, buyers such as HDB upgraders are increasingly reluctant to pay sky-high prices, noted Colliers International's director of research and advisory, Ms Tay Huey Ying.
Preliminary estimates released yesterday by the Urban Redevelopment Authority (URA) showed that mass market non- landed private homes rose at a faster clip of 5.7 per cent to a new high, compared with 4.3 per cent in the first quarter.
These prices are now a hefty 14.2 per cent above the previous 2008 peak.
Mr Tan said this could be attributed to higher price levels set at new launches such as Tree House and The Minton, as well as rising prices of resale deals in areas where several government sites had been sold in the past six to nine months.
In central Singapore, non-landed home prices moved up 5.1 per cent, from 4.4 per cent in the first quarter. It was only in city fringe areas that prices of non-landed homes rose at a slower 4.5 per cent, compared with a furious 7.9 per cent first-quarter jump.
'Individual sellers on the resale front, especially those who had bought their properties before the 2007 boom, are now making capital gains in the region of 80-90 per cent,' noted ERA Asia Pacific associate director Eugene Lim.
Since late May, there has been a sales slowdown owing to the euro zone crisis, a lacklustre stock market and high asking prices, but home prices have generally remained firm. Sales of new, private homes halved to 1,078 units in May, from April.
Mr Lim said developers are unlikely to cut prices for new launches to sell more units as most have strong balance sheets.
Still, the slower sales will affect sentiment, said Cushman and Wakefield managing director Donald Han. The pace of price rises will slow down with the resale market first to be hit. The full effects will be felt from this quarter, he said.
For the whole year, property experts are mostly looking at price increases of about 15 per cent. Estimates range from 12 per cent to as much as 20 per cent.
'After the football World Cup season, people will look at whether the West is coping well and Singapore's economic growth and policies. Economists revising higher their growth estimates means that prices are likely to rise,' said Knight Frank chairman Tan Tiong Cheng.
'On the other hand, ample supply has translated to developers being more selective in bidding for sites. Land costs would come off and that would mitigate price rises six months down the road.'
Looking further ahead, Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the risk of a price correction could grow if uncertainties in global financial markets hurt market sentiment, and if the large impending supply of government land leads to a private home glut.
URA will update its second quarter price data in four weeks.
joyceteo@sph.com.sg
ST : HDB resale prices rising faster
Jul 2, 2010
HDB resale prices rising faster
Preliminary figures show a 3.8 per cent Q2 rise; analysts revising full-year estimates
By Jessica Cheam
THE rise in Housing Board resale flat prices is accelerating again - after taking a slight breather early this year.
Preliminary estimates released by the HDB yesterday show resale HDB flat prices rose 3.8 per cent to a fresh record in the second quarter compared to the first quarter.
This is the eighth straight quarter that resale flat prices have broken records since 2008 when they surpassed the levels of the 1996 property peak.
Property analysts are now dramatically revising their full-year estimates for resale flat price rises - from 5 to 8 per cent previously, to 12 to 15 per cent.
Earlier this year, analysts had expected resale flat price increases to moderate when HDB figures showed prices rising 2.8 per cent in the first quarter over the previous quarter.
This rate of increase was slower than the 3.9 per cent in the fourth quarter of last year, and led industry observers to predict a moderation in price growth.
But the economic environment has changed. ERA Asia-Pacific associate director Eugene Lim said the outlook for the local economy 'is strong and the jobs market has picked up significantly'.
This has sustained the high level of demand for resale flats, and as supply is still tight for resale flats, prices have continued to grow, said Mr Lim.
Even though HDB has aggressively ramped up the supply of new flats - it launched 2,696 flats on Wednesday, the largest ever single launch - these cater to first-time buyers and those who are able to wait three years for the flats to be built, he said.
'For upgraders, permanent residents and those with immediate housing needs, the resale market is the only source.'
Associate Professor Sing Tien Foo of the National University of Singapore's real estate department says rising prices will hit new home-buyers hardest. 'For existing HDB homeowners, however, there is a 'wealth' effect, which may induce them to upgrade to bigger or private flats,' he said.
Analysts said yesterday the price increase was also likely due to higher cash-over-valuation (COV) premiums. COV refers to the cash paid upfront by buyers above the valuation of a flat.
While HDB will release full figures - including COV numbers - only in a few weeks, two top property agencies ERA and PropNex said the median COV for second quarter sales shot up to $30,000.
This is up from the median COV of $25,000 seen in the first quarter, according to HDB's figures.
HDB said yesterday it would continue to release adequate supply to meet housing demand. It has so far offered 8,828 new flats in the first half of the year - equivalent to the supply for all of last year.
But Prof Sing noted that the new supply would take even longer to enter the resale market, due to the five-year minimum occupation requirement before an owner can sell.
He added, however, that the 3.8 per cent rise in resale prices is still relatively small compared to private property prices, which shot up 5.2 per cent this quarter, and 5.6 per cent in the first quarter.
'In the public market, where supply is regulated, prices will respond more slowly than the private markets. The price increases in HDB resale will lag private market price increases.'
jcheam@sph.com.sg
HDB resale prices rising faster
Preliminary figures show a 3.8 per cent Q2 rise; analysts revising full-year estimates
By Jessica Cheam
THE rise in Housing Board resale flat prices is accelerating again - after taking a slight breather early this year.
Preliminary estimates released by the HDB yesterday show resale HDB flat prices rose 3.8 per cent to a fresh record in the second quarter compared to the first quarter.
This is the eighth straight quarter that resale flat prices have broken records since 2008 when they surpassed the levels of the 1996 property peak.
Property analysts are now dramatically revising their full-year estimates for resale flat price rises - from 5 to 8 per cent previously, to 12 to 15 per cent.
Earlier this year, analysts had expected resale flat price increases to moderate when HDB figures showed prices rising 2.8 per cent in the first quarter over the previous quarter.
This rate of increase was slower than the 3.9 per cent in the fourth quarter of last year, and led industry observers to predict a moderation in price growth.
But the economic environment has changed. ERA Asia-Pacific associate director Eugene Lim said the outlook for the local economy 'is strong and the jobs market has picked up significantly'.
This has sustained the high level of demand for resale flats, and as supply is still tight for resale flats, prices have continued to grow, said Mr Lim.
Even though HDB has aggressively ramped up the supply of new flats - it launched 2,696 flats on Wednesday, the largest ever single launch - these cater to first-time buyers and those who are able to wait three years for the flats to be built, he said.
'For upgraders, permanent residents and those with immediate housing needs, the resale market is the only source.'
Associate Professor Sing Tien Foo of the National University of Singapore's real estate department says rising prices will hit new home-buyers hardest. 'For existing HDB homeowners, however, there is a 'wealth' effect, which may induce them to upgrade to bigger or private flats,' he said.
Analysts said yesterday the price increase was also likely due to higher cash-over-valuation (COV) premiums. COV refers to the cash paid upfront by buyers above the valuation of a flat.
While HDB will release full figures - including COV numbers - only in a few weeks, two top property agencies ERA and PropNex said the median COV for second quarter sales shot up to $30,000.
This is up from the median COV of $25,000 seen in the first quarter, according to HDB's figures.
HDB said yesterday it would continue to release adequate supply to meet housing demand. It has so far offered 8,828 new flats in the first half of the year - equivalent to the supply for all of last year.
But Prof Sing noted that the new supply would take even longer to enter the resale market, due to the five-year minimum occupation requirement before an owner can sell.
He added, however, that the 3.8 per cent rise in resale prices is still relatively small compared to private property prices, which shot up 5.2 per cent this quarter, and 5.6 per cent in the first quarter.
'In the public market, where supply is regulated, prices will respond more slowly than the private markets. The price increases in HDB resale will lag private market price increases.'
jcheam@sph.com.sg
ST : Big demand for Punggol flats
Jul 2, 2010
Big demand for Punggol flats
A couple checking out artists' impressions of new build-to-order (BTO) flats at HDB Hub in Toa Payoh yesterday. The Housing Board received a deluge of applications just one day after the launch of BTO project Waterway Terraces in Punggol, which will feature waterfront units.
As of yesterday, five-room flats had been almost six times oversubscribed, with 1,755 applications received for the 306 flats available. Demand was also high for four-roomers, with 2,461 applications received - more than four times the 588 available units.
Big demand for Punggol flats
A couple checking out artists' impressions of new build-to-order (BTO) flats at HDB Hub in Toa Payoh yesterday. The Housing Board received a deluge of applications just one day after the launch of BTO project Waterway Terraces in Punggol, which will feature waterfront units.
As of yesterday, five-room flats had been almost six times oversubscribed, with 1,755 applications received for the 306 flats available. Demand was also high for four-roomers, with 2,461 applications received - more than four times the 588 available units.
ST : Admiral Hill developer dropped
Jul 2, 2010
Admiral Hill developer dropped
SLA to look for new developer, gives Yess' sub-tenants until early next year to move out
By Jessica Lim
ADMIRAL Hill was to have been the Dempsey Hill of northern Singapore, a lifestyle hub with a country club, rock-climbing facilities, a golf driving range and beauty and health businesses, among other attractions.
But the future of the project is in doubt: The landlord of the site, the Singapore Land Authority (SLA), has terminated the contract of developer Yess Resorts & Country Club (Yess) for failing to pay the rent.
The SLA will shop for a new developer, and Yess' sub-tenants have until early next year to clear out.
The jury is out, however, on whether there will be new takers for this 4ha site in far-flung Sembawang. Admiral Hill was to have come up around Old Admiralty House, which was built in 1939 to accommodate Royal Navy officers and declared a national monument in 2002.
The project was dogged by problems from the get-go.
Yess clinched the SLA tender to develop the place in 2007 by offering to pay $40,000 a month in rent and on the strength of its proposed plans.
But instead of a 'lifestyle hub', an illegal school and a workers' dormitory came up. Both were ordered shut last year.
When The Straits Times visited the site this week, it was in a state of neglect. Units sat empty and weeds had overrun the place.
Sub-tenants there now were apparently given the impression that Yess was forging ahead with the lifestyle hub.
Mr Al Lim, 39, who owns Chinese restaurant House Kitchen, said Yess claimed it had the SLA's clearance to take on more sub-tenants, so he signed a two-year lease in March and poured more than $100,000 into renovations.
He was thus shocked when the SLA told him two months later that he had to move out this month. He appealed and was given a reprieve until early next year.
He said that when he met Yess last month, it claimed to have been in the dark about the SLA's plans to terminate its contract.
Mr Alan Poh, who opened steamboat restaurant Fat Fish there a year ago on a two-year lease, has a similar tale - and some regrets to go with it, since his business is just starting to take off following an advertising campaign, he said.
A third sub-tenant, Sembawang Family Enrichment Network, signed up for a three-year lease in April last year and put $200,000 into renovations. Its manager Daniel Sum, 56, is now looking for another site. 'It has happened and there's nothing we can do about it,' he said.
The Straits Times understands Yess signed agreements with these new sub-tenants without first asking the SLA for consent, which is illegal.
They are only the latest ones to feel short-changed. Two former sub-tenants who signed contracts with Yess in 2007 have sought legal advice.
Yess refused to comment yesterday.
The Accounting & Corporate Regulatory Authority (Acra) lists it as a 'live company' and names a Mr Lee Kiang Hong as its director. The company is fully owned by the Yess Group.
An SLA spokesman said the Government was not party to sub-tenancy agreements between Yess and its sub-tenants, and that the parties would have to sort out the disputes among themselves.
She urged prospective sub-tenants of state properties to run checks on the tenant. They should also ask the tenant to produce the SLA's written consent for sub-tenancy agreements and seek legal advice before signing a contract.
The spokesman said this is to avoid the scenario in which sub-tenants commit themselves, only to find that their intended business activity is not an approved one for the property, or that the tenure falls outside that of the main tenancy.
With Yess out, the future of Admiral Hill looks none too certain, going by the assessment of Country City Investment, which successfully developed Dempsey Hill in Tanglin Village.
Admiral Hill's problem is its lack of drawing power, said Country City's general manager Nicholas Ng.
Still, how successful it can be will depend on the uses for the plot and the rental, he said; its rundown state, short tenancy agreement and its inaccessibility are factors against it. He said: 'It's not impossible, but it would take a lot of work and capital to make it successful.'
City Country, which lost the 2007 bid to Yess, has no plans to put in a bid again, he added.
limjess@sph.com.sg
Admiral Hill developer dropped
SLA to look for new developer, gives Yess' sub-tenants until early next year to move out
By Jessica Lim
ADMIRAL Hill was to have been the Dempsey Hill of northern Singapore, a lifestyle hub with a country club, rock-climbing facilities, a golf driving range and beauty and health businesses, among other attractions.
But the future of the project is in doubt: The landlord of the site, the Singapore Land Authority (SLA), has terminated the contract of developer Yess Resorts & Country Club (Yess) for failing to pay the rent.
The SLA will shop for a new developer, and Yess' sub-tenants have until early next year to clear out.
The jury is out, however, on whether there will be new takers for this 4ha site in far-flung Sembawang. Admiral Hill was to have come up around Old Admiralty House, which was built in 1939 to accommodate Royal Navy officers and declared a national monument in 2002.
The project was dogged by problems from the get-go.
Yess clinched the SLA tender to develop the place in 2007 by offering to pay $40,000 a month in rent and on the strength of its proposed plans.
But instead of a 'lifestyle hub', an illegal school and a workers' dormitory came up. Both were ordered shut last year.
When The Straits Times visited the site this week, it was in a state of neglect. Units sat empty and weeds had overrun the place.
Sub-tenants there now were apparently given the impression that Yess was forging ahead with the lifestyle hub.
Mr Al Lim, 39, who owns Chinese restaurant House Kitchen, said Yess claimed it had the SLA's clearance to take on more sub-tenants, so he signed a two-year lease in March and poured more than $100,000 into renovations.
He was thus shocked when the SLA told him two months later that he had to move out this month. He appealed and was given a reprieve until early next year.
He said that when he met Yess last month, it claimed to have been in the dark about the SLA's plans to terminate its contract.
Mr Alan Poh, who opened steamboat restaurant Fat Fish there a year ago on a two-year lease, has a similar tale - and some regrets to go with it, since his business is just starting to take off following an advertising campaign, he said.
A third sub-tenant, Sembawang Family Enrichment Network, signed up for a three-year lease in April last year and put $200,000 into renovations. Its manager Daniel Sum, 56, is now looking for another site. 'It has happened and there's nothing we can do about it,' he said.
The Straits Times understands Yess signed agreements with these new sub-tenants without first asking the SLA for consent, which is illegal.
They are only the latest ones to feel short-changed. Two former sub-tenants who signed contracts with Yess in 2007 have sought legal advice.
Yess refused to comment yesterday.
The Accounting & Corporate Regulatory Authority (Acra) lists it as a 'live company' and names a Mr Lee Kiang Hong as its director. The company is fully owned by the Yess Group.
An SLA spokesman said the Government was not party to sub-tenancy agreements between Yess and its sub-tenants, and that the parties would have to sort out the disputes among themselves.
She urged prospective sub-tenants of state properties to run checks on the tenant. They should also ask the tenant to produce the SLA's written consent for sub-tenancy agreements and seek legal advice before signing a contract.
The spokesman said this is to avoid the scenario in which sub-tenants commit themselves, only to find that their intended business activity is not an approved one for the property, or that the tenure falls outside that of the main tenancy.
With Yess out, the future of Admiral Hill looks none too certain, going by the assessment of Country City Investment, which successfully developed Dempsey Hill in Tanglin Village.
Admiral Hill's problem is its lack of drawing power, said Country City's general manager Nicholas Ng.
Still, how successful it can be will depend on the uses for the plot and the rental, he said; its rundown state, short tenancy agreement and its inaccessibility are factors against it. He said: 'It's not impossible, but it would take a lot of work and capital to make it successful.'
City Country, which lost the 2007 bid to Yess, has no plans to put in a bid again, he added.
limjess@sph.com.sg
BT : Three land plots put up for sale
Business Times - 02 Jul 2010
Three land plots put up for sale
99-year-lease sites located at Bedok, Yishun, Jurong West
By EMILYN YAP
(SINGAPORE) The government yesterday rolled out for sale three plots of land across the island, potentially adding some 1,300 units to the residential supply pipeline.
The blitz of sites followed the release of new data showing public and private home prices continuing their ascent in the second quarter.
The three sites at Bedok, Yishun and Jurong West are from the confirmed list under the government land sales (GLS) programme in the second half of the year. The Housing & Development Board (HDB) is handling the tenders.
Of these sites, the 99-year-lease one at New Upper Changi Road/Bedok North Drive attracted the most attention because it can house a commercial-residential development which will be integrated with a bus interchange.
The 2.49 hectare site is at Bedok Town Centre, next to Bedok MRT Station, and is surrounded by amenities such as supermarkets and a library. It has a maximum permissible gross floor area (GFA) of 938,157 square feet and can yield an estimated 475 dwelling units.
DTZ South-east Asia research head Chua Chor Hoon believes this plot is the most attractive of the three because it is centrally located in a well populated town. Also, 'there are only a few mixed sites available at the heart of HDB estates in the GLS programme', she said.
Cushman & Wakefield managing director Donald Han added that Bedok still lacks a major retail centre, so there could be fairly fierce bidding for the site, in the range of $500-580 per sq ft per plot ratio (psf ppr).
Colliers International investment sales executive director Ho Eng Joo expects to see bids coming in at $500-550 psf ppr. The tender for the site will close on Aug 17.
Another 99-year-lease land parcel at Miltonia Close can be developed into a strata housing community, or a condominium project with 345 units and a maximum permissible GFA of 406,875 sq ft. It lies at the fringe of Yishun Town Centre and is next to The Shaughnessy terrace house project.
While the plot may not be near an MRT station, its views of Lower Seletar Reservoir and Orchid Country Club's golf course may be a selling point, Mr Ho said. He projects bids of $300-350 psf ppr, while Mr Han is anticipating $270-320 psf ppr. The tender for this land parcel closes on Aug 24.
There was little hype over the third site at Jurong West Street 42, which is for an executive condominium project and is some distance from Lakeside MRT Station. It has a 99-year lease and can yield an estimated 460 units with a maximum permissible GFA of 542,988 sq ft.
Mr Ho and Mr Han expect to see bids of $230-280 and $250-300 psf ppr respectively. The tender for this site closes on Aug 12.
With more land parcels to be released, Mr Ho believes developers will be less aggressive in their bids. This month, the Urban Redevelopment Authority (URA) will be launching another two sites from the confirmed list, and making one from the reserve list available for application.
Mr Han added that the Miltonia Close and Jurong West sites just released by HDB are right next to other plots which can be launched for sale in future. The presence of such potential competition may make developers more price-sensitive when submitting their bids, he said.
The government has been ramping up land supply in the last few months to temper sentiment in the property market. Flash estimates yesterday showed private home prices rising 5.2 per cent in Q2 from Q1, and HDB resale flat prices increasing 3.8 per cent.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Three land plots put up for sale
99-year-lease sites located at Bedok, Yishun, Jurong West
By EMILYN YAP
(SINGAPORE) The government yesterday rolled out for sale three plots of land across the island, potentially adding some 1,300 units to the residential supply pipeline.
The blitz of sites followed the release of new data showing public and private home prices continuing their ascent in the second quarter.
The three sites at Bedok, Yishun and Jurong West are from the confirmed list under the government land sales (GLS) programme in the second half of the year. The Housing & Development Board (HDB) is handling the tenders.
Of these sites, the 99-year-lease one at New Upper Changi Road/Bedok North Drive attracted the most attention because it can house a commercial-residential development which will be integrated with a bus interchange.
The 2.49 hectare site is at Bedok Town Centre, next to Bedok MRT Station, and is surrounded by amenities such as supermarkets and a library. It has a maximum permissible gross floor area (GFA) of 938,157 square feet and can yield an estimated 475 dwelling units.
DTZ South-east Asia research head Chua Chor Hoon believes this plot is the most attractive of the three because it is centrally located in a well populated town. Also, 'there are only a few mixed sites available at the heart of HDB estates in the GLS programme', she said.
Cushman & Wakefield managing director Donald Han added that Bedok still lacks a major retail centre, so there could be fairly fierce bidding for the site, in the range of $500-580 per sq ft per plot ratio (psf ppr).
Colliers International investment sales executive director Ho Eng Joo expects to see bids coming in at $500-550 psf ppr. The tender for the site will close on Aug 17.
Another 99-year-lease land parcel at Miltonia Close can be developed into a strata housing community, or a condominium project with 345 units and a maximum permissible GFA of 406,875 sq ft. It lies at the fringe of Yishun Town Centre and is next to The Shaughnessy terrace house project.
While the plot may not be near an MRT station, its views of Lower Seletar Reservoir and Orchid Country Club's golf course may be a selling point, Mr Ho said. He projects bids of $300-350 psf ppr, while Mr Han is anticipating $270-320 psf ppr. The tender for this land parcel closes on Aug 24.
There was little hype over the third site at Jurong West Street 42, which is for an executive condominium project and is some distance from Lakeside MRT Station. It has a 99-year lease and can yield an estimated 460 units with a maximum permissible GFA of 542,988 sq ft.
Mr Ho and Mr Han expect to see bids of $230-280 and $250-300 psf ppr respectively. The tender for this site closes on Aug 12.
With more land parcels to be released, Mr Ho believes developers will be less aggressive in their bids. This month, the Urban Redevelopment Authority (URA) will be launching another two sites from the confirmed list, and making one from the reserve list available for application.
Mr Han added that the Miltonia Close and Jurong West sites just released by HDB are right next to other plots which can be launched for sale in future. The presence of such potential competition may make developers more price-sensitive when submitting their bids, he said.
The government has been ramping up land supply in the last few months to temper sentiment in the property market. Flash estimates yesterday showed private home prices rising 5.2 per cent in Q2 from Q1, and HDB resale flat prices increasing 3.8 per cent.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Private home prices outstrip peak of '96
Business Times - 02 Jul 2010
Private home prices outstrip peak of '96
But govt cooling measures expected to mitigate hikes; resale HDB prices continue to climb
By UMA SHANKARI
(SINGAPORE) Private home prices in Singapore have now surpassed the former all-time peak they achieved in 1996, official data shows.
Flash estimates released yesterday said that private home prices in Singapore rose 5.2 per cent in Q2 2010 after climbing 5.6 per cent in the first three months of the year.
This brings the Urban Redevelopment Authority's (URA) price index for private residential property to 184.1 points - 1.5 per cent higher than the previous pre-Asian crisis peak of 181.4 points in Q2 1996.
Prices of resale HDB flats also continued to climb and set another record in the second quarter. Resale prices rose a steeper 3.8 per cent in Q2, higher than the 2.8 per cent climb seen in Q1.
For the private residential market, homes in the 'outside central region' (a proxy for suburban mass- market locations) led the price increase with a 5.7 per cent quarter-on-quarter climb in Q2.
Prices in the 'core central region' (which includes the prime Districts 9 and 10, the financial district and Sentosa Cove) rose 5.1 per cent while prices in the 'rest of central region' rose 4.5 per cent.
Home prices in the outside central region and rest of central region are higher than they were during the recent 2008 peaks. But prices in the high-end core central region are still about 2 per cent below the 2008 peak.
While prices climbed across all three regions, analysts pointed out that recent government measures to cool the market have worked to some extent as the price growth has now slowed down for three consecutive quarters - although the deceleration in growth has been slower than what was hoped for, particularly in the mass- market segment.
'There will be a time lag before we will see a more moderate increase in prices,' said Knight Frank chairman Tan Tiong Cheng. 'The market has been positive but the government has mitigated this by providing a lot of land. But the supply needs some time to come onto the market.'
There is also increasing price resistance, as demonstrated by the more than 50 per cent drop in sales of new homes in May. This should help to further moderate price increases - especially in the mass-market segment - to within 5 per cent for each of the next two quarters, said Tay Huey Ying, Colliers International's director of research and advisory.
Jones Lang LaSalle's head of research for South-east Asia, Chua Yang Liang, added: 'Overall, the falling sales volume in both primary and secondary markets suggests that the overall URA property price index, a lagging indicator of demand, may soften in the next few months.'
Developers sold just 1,078 private homes in May - about half the 2,208 units they transacted in April.
Analysts also said that further anti-speculation measures are unlikely as prices in the primary market, which are thought to be a better reflection of current market sentiment, are pointing towards a slowdown. Most analysts expect private home prices to rise a total of 12-15 per cent for the whole of 2010.
But for the HDB resale market, it is a very different story. The rate of price growth seems to be increasing.
Eugene Lim, associate director of ERA Asia-Pacific, pointed out that on average, HDB resale prices are increasing at a rate of 3.3 per cent per quarter this year, compared to just 2 per cent per quarter last year.
The 3.8 per cent increase in prices in Q2 to another new high can be attributed to higher cash- over-valuation (COV) amounts, industry players said.
'Our Q2 2010 transactions show a median COV of $30,000 for all flat types across all estates, while HDB's Q1 2010 results showed an overall median COV of $25,000,' said PropNex chief executive Mohamed Ismail.
ERA's transactions also show that the median COV has increased across all flat types. For three-room flats, the median COV is now $29,000 compared to $22,000 in Q1; four-room flats $32,000 ($25,000 in Q1); five-room flats $36,000 ($28,000); and executive flats $40,000 ($30,000).
HDB on Wednesday said it has launched 2,696 new build-to-order (BTO) flats to ensure that there is an adequate supply of new flats to meet housing demand - the largest number of such flats ever offered at one go.
But this might not satisfy demand from all corners.
'Though HDB has increased the supply of new flats, these cater predominantly to the first-timers and those who can wait three years for these new flats to be built,' said ERA's Mr Lim.
'For upgraders, permanent residents and those who have immediate housing needs, the resale market is the only source.'
He expects HDB resale prices to increase 12-15 per cent for the whole year.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Private home prices outstrip peak of '96
But govt cooling measures expected to mitigate hikes; resale HDB prices continue to climb
By UMA SHANKARI
(SINGAPORE) Private home prices in Singapore have now surpassed the former all-time peak they achieved in 1996, official data shows.
Flash estimates released yesterday said that private home prices in Singapore rose 5.2 per cent in Q2 2010 after climbing 5.6 per cent in the first three months of the year.
This brings the Urban Redevelopment Authority's (URA) price index for private residential property to 184.1 points - 1.5 per cent higher than the previous pre-Asian crisis peak of 181.4 points in Q2 1996.
Prices of resale HDB flats also continued to climb and set another record in the second quarter. Resale prices rose a steeper 3.8 per cent in Q2, higher than the 2.8 per cent climb seen in Q1.
For the private residential market, homes in the 'outside central region' (a proxy for suburban mass- market locations) led the price increase with a 5.7 per cent quarter-on-quarter climb in Q2.
Prices in the 'core central region' (which includes the prime Districts 9 and 10, the financial district and Sentosa Cove) rose 5.1 per cent while prices in the 'rest of central region' rose 4.5 per cent.
Home prices in the outside central region and rest of central region are higher than they were during the recent 2008 peaks. But prices in the high-end core central region are still about 2 per cent below the 2008 peak.
While prices climbed across all three regions, analysts pointed out that recent government measures to cool the market have worked to some extent as the price growth has now slowed down for three consecutive quarters - although the deceleration in growth has been slower than what was hoped for, particularly in the mass- market segment.
'There will be a time lag before we will see a more moderate increase in prices,' said Knight Frank chairman Tan Tiong Cheng. 'The market has been positive but the government has mitigated this by providing a lot of land. But the supply needs some time to come onto the market.'
There is also increasing price resistance, as demonstrated by the more than 50 per cent drop in sales of new homes in May. This should help to further moderate price increases - especially in the mass-market segment - to within 5 per cent for each of the next two quarters, said Tay Huey Ying, Colliers International's director of research and advisory.
Jones Lang LaSalle's head of research for South-east Asia, Chua Yang Liang, added: 'Overall, the falling sales volume in both primary and secondary markets suggests that the overall URA property price index, a lagging indicator of demand, may soften in the next few months.'
Developers sold just 1,078 private homes in May - about half the 2,208 units they transacted in April.
Analysts also said that further anti-speculation measures are unlikely as prices in the primary market, which are thought to be a better reflection of current market sentiment, are pointing towards a slowdown. Most analysts expect private home prices to rise a total of 12-15 per cent for the whole of 2010.
But for the HDB resale market, it is a very different story. The rate of price growth seems to be increasing.
Eugene Lim, associate director of ERA Asia-Pacific, pointed out that on average, HDB resale prices are increasing at a rate of 3.3 per cent per quarter this year, compared to just 2 per cent per quarter last year.
The 3.8 per cent increase in prices in Q2 to another new high can be attributed to higher cash- over-valuation (COV) amounts, industry players said.
'Our Q2 2010 transactions show a median COV of $30,000 for all flat types across all estates, while HDB's Q1 2010 results showed an overall median COV of $25,000,' said PropNex chief executive Mohamed Ismail.
ERA's transactions also show that the median COV has increased across all flat types. For three-room flats, the median COV is now $29,000 compared to $22,000 in Q1; four-room flats $32,000 ($25,000 in Q1); five-room flats $36,000 ($28,000); and executive flats $40,000 ($30,000).
HDB on Wednesday said it has launched 2,696 new build-to-order (BTO) flats to ensure that there is an adequate supply of new flats to meet housing demand - the largest number of such flats ever offered at one go.
But this might not satisfy demand from all corners.
'Though HDB has increased the supply of new flats, these cater predominantly to the first-timers and those who can wait three years for these new flats to be built,' said ERA's Mr Lim.
'For upgraders, permanent residents and those who have immediate housing needs, the resale market is the only source.'
He expects HDB resale prices to increase 12-15 per cent for the whole year.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TODAY ONLINE : Older units more affordable for some
Older units more affordable for some
05:55 AM Jul 02, 2010
With private property prices hitting their highest levels in the last two years, young professionals are feeling the pinch when it comes to buying their first home.
Mr John Ng, a newly-wed entrepreneur, said he is looking only at options that are within his means.
"We won't be looking at brand new units because they are very expensive, we will be looking at 10 to 15 year-old units because they are still within our budget," said Mr Ng, who has allocated $600,000 to $700,000 for a property in the suburbs.
Mr Colin Tan, head of research and consultancy at Chesteron Suntec International, suggested that someone like Mr Ng should consider older properties such as those with 10 to 15 years to the expiry of their lease tenure.
Properties without facilities, such as an old walk-up apartment, are also an option.
For someone with Mr Ng's budget, some condo developments that remain affordable include: Double Bay Residences, Simei, $565 psf with unit sizes from 538 square feet; Rosewood Suites, Woodlands, $586 psf with unit sizes from 678 square feet; Elliot at the East Coast, Marine Parade, $842 psf with unit sizes from 506 square feet.
Jo-ann Huang
05:55 AM Jul 02, 2010
With private property prices hitting their highest levels in the last two years, young professionals are feeling the pinch when it comes to buying their first home.
Mr John Ng, a newly-wed entrepreneur, said he is looking only at options that are within his means.
"We won't be looking at brand new units because they are very expensive, we will be looking at 10 to 15 year-old units because they are still within our budget," said Mr Ng, who has allocated $600,000 to $700,000 for a property in the suburbs.
Mr Colin Tan, head of research and consultancy at Chesteron Suntec International, suggested that someone like Mr Ng should consider older properties such as those with 10 to 15 years to the expiry of their lease tenure.
Properties without facilities, such as an old walk-up apartment, are also an option.
For someone with Mr Ng's budget, some condo developments that remain affordable include: Double Bay Residences, Simei, $565 psf with unit sizes from 538 square feet; Rosewood Suites, Woodlands, $586 psf with unit sizes from 678 square feet; Elliot at the East Coast, Marine Parade, $842 psf with unit sizes from 506 square feet.
Jo-ann Huang
TODAY ONLINE : Oversupply looming?
Oversupply looming?
There's an insatiable demand for owner-occupied property now, but what happens later?
05:55 AM Jul 02, 2010
by Colin Tan
The spectre of a possible looming oversupply in Singapore's housing market - including both the private and public sectors - in the not-to-distant future was again brought back to the fore when the HDB announced on Wednesday its biggest launch ever of new Build To Order (BTO) flats.
The 2,696 flats offered brings the total number of new BTO flats launched to 8,828 flats for the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
At this rate, the HDB will likely double the number of BTO flats by the end of the year to about 17,000 units.
For the time being, demand for BTO flats appear insatiable. Unlike most purchases of private homes, this is real demand for owner occupation. It is just that rising resale prices and fears of further increases in flat prices drove many to book their flats many years in advance.
The widening price gap between new and resale flats coupled with many more innovative schemes such as the new eco-friendly Waterway Terraces have also added to the attraction of BTO flats.
If we tag these numbers to the robust sales of over 14,000 private homes each in 2007 and last year with a strong possibility that these numbers may yet be matched this year, are we looking at a looming housing oversupply within the next two to three years or even earlier?
The current strong demand for BTO flats is not sustainable. There will come a time when demand will drop off as those wanting to buy would have already secured their flats or have already booked theirs.
The rise in HDB resale flat prices may then plateau off. This may act as a cap on the future number of upgraders to the lower end of the private housing market particularly if private home prices continue to rise.
Do we then depend on foreigners to make up this shortfall? The percentage of foreign and permanent residents buying has certainly gone up in recent months but they are fair weather market participants. They can go as quickly as they come.
While discussing property at a recent business lunch, a few Hong Kong professionals told me laughingly that some of their friends are no longer able to visit Singapore as they are "wanted" people.
It transpired that these friends bought high-end properties in 2007 and chose to walk away when prices turned south.
Will recent buyers walk away again when things do not go their way?
If I were the owner who recently sold off his Sentosa Cove detached house for $36 million, I will put off celebrations until I actually have my hands on the money. Anything can happen between now and sale completion.
The greatest drawback in attacking the real estate bubble from the supply side is that it places a huge strain on the limited industry resources.
Lest we forget, the ramping up of supply in recent months have yet to make a dent in demand. If demand does not abate due to excessive liquidity, what happens then?
With the total number of homes - both private and public - sold having more than double in recent years, is the real estate industry particularly the construction sector able to similarly doubled its capacity.
Let us say we have the labour capacity, what about material costs? Even if we are prepared to pay more, are we able to get them? The problem of sand imports comes quickly to mind.
With such nagging problems, it is possible that we will see the return of ever rising construction costs and project delays.
It was not so long ago that skyrocketing construction prices and the credit crunch led to a indefinite postponement in the development of our Kallang Sports Hub.
It has since been revived but it had better take off quickly before the same problems resurface once again.
The writer is the head of research and consultancy at Chesterton Suntec International.
There's an insatiable demand for owner-occupied property now, but what happens later?
05:55 AM Jul 02, 2010
by Colin Tan
The spectre of a possible looming oversupply in Singapore's housing market - including both the private and public sectors - in the not-to-distant future was again brought back to the fore when the HDB announced on Wednesday its biggest launch ever of new Build To Order (BTO) flats.
The 2,696 flats offered brings the total number of new BTO flats launched to 8,828 flats for the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
At this rate, the HDB will likely double the number of BTO flats by the end of the year to about 17,000 units.
For the time being, demand for BTO flats appear insatiable. Unlike most purchases of private homes, this is real demand for owner occupation. It is just that rising resale prices and fears of further increases in flat prices drove many to book their flats many years in advance.
The widening price gap between new and resale flats coupled with many more innovative schemes such as the new eco-friendly Waterway Terraces have also added to the attraction of BTO flats.
If we tag these numbers to the robust sales of over 14,000 private homes each in 2007 and last year with a strong possibility that these numbers may yet be matched this year, are we looking at a looming housing oversupply within the next two to three years or even earlier?
The current strong demand for BTO flats is not sustainable. There will come a time when demand will drop off as those wanting to buy would have already secured their flats or have already booked theirs.
The rise in HDB resale flat prices may then plateau off. This may act as a cap on the future number of upgraders to the lower end of the private housing market particularly if private home prices continue to rise.
Do we then depend on foreigners to make up this shortfall? The percentage of foreign and permanent residents buying has certainly gone up in recent months but they are fair weather market participants. They can go as quickly as they come.
While discussing property at a recent business lunch, a few Hong Kong professionals told me laughingly that some of their friends are no longer able to visit Singapore as they are "wanted" people.
It transpired that these friends bought high-end properties in 2007 and chose to walk away when prices turned south.
Will recent buyers walk away again when things do not go their way?
If I were the owner who recently sold off his Sentosa Cove detached house for $36 million, I will put off celebrations until I actually have my hands on the money. Anything can happen between now and sale completion.
The greatest drawback in attacking the real estate bubble from the supply side is that it places a huge strain on the limited industry resources.
Lest we forget, the ramping up of supply in recent months have yet to make a dent in demand. If demand does not abate due to excessive liquidity, what happens then?
With the total number of homes - both private and public - sold having more than double in recent years, is the real estate industry particularly the construction sector able to similarly doubled its capacity.
Let us say we have the labour capacity, what about material costs? Even if we are prepared to pay more, are we able to get them? The problem of sand imports comes quickly to mind.
With such nagging problems, it is possible that we will see the return of ever rising construction costs and project delays.
It was not so long ago that skyrocketing construction prices and the credit crunch led to a indefinite postponement in the development of our Kallang Sports Hub.
It has since been revived but it had better take off quickly before the same problems resurface once again.
The writer is the head of research and consultancy at Chesterton Suntec International.
Thursday, July 1, 2010
ST : Rents at ex-JTC factories could rise
Jul 1, 2010
Rents at ex-JTC factories could rise
RENTS at industrial properties formerly owned by JTC Corp are likely to go up from June next year once a rental rise cap is lifted and a real estate investment trust (Reit) manager takes over.
The properties are held under the Mapletree Industrial Trust, which is headed for an initial public offering, possibly by the end of the year. Reits collect rent from tenants of the properties they own and pay most of it as dividends to unit holders.
Mapletree Investments, which bought the properties in 2008, had to face unhappy tenants struggling with soaring rents last year. Many had petitioned Mapletree for hefty rent cuts to cope with the tough market conditions then. Most of all, they were upset at having missed out on a 15 per cent rental rebate granted by JTC as part of the Government's Resilience Package.
Many are small and medium-sized enterprises occupying the cheapest of the ex-JTC factories. And JTC rents are generally below market rates.
Property consultants had said that they cannot expect Mapletree to offer them the same low rates.
In any case, Mapletree had said that 1,448 of the industrial trust's flatted and stack-up factories, as well as warehouses, would benefit from a 5 per cent rental cap - of JTC's rent in July 2007 - when they renewed their leases before this month.
There is no cap for the remaining 108 - 7 per cent of the total - tenants in its business park buildings.
Mapletree Investments' chief executive (Industrial) Phua Kok Kim said yesterday it has stuck to the rental cap. He said new tenants are signing leases at higher rates, which shows that the properties are 'under-rented and there is potential for organic growth'.
But any rise is likely to be gradual, said Mapletree group chief financial officer Wong Mun Hoong.
Mr Phua added: 'All our rents are subject to competitive market forces of supply and demand, so even when the rental cap of 5 per cent is lifted for non-business park space, the renewal rents will still be subject to market forces.'
JOYCE TEO
Rents at ex-JTC factories could rise
RENTS at industrial properties formerly owned by JTC Corp are likely to go up from June next year once a rental rise cap is lifted and a real estate investment trust (Reit) manager takes over.
The properties are held under the Mapletree Industrial Trust, which is headed for an initial public offering, possibly by the end of the year. Reits collect rent from tenants of the properties they own and pay most of it as dividends to unit holders.
Mapletree Investments, which bought the properties in 2008, had to face unhappy tenants struggling with soaring rents last year. Many had petitioned Mapletree for hefty rent cuts to cope with the tough market conditions then. Most of all, they were upset at having missed out on a 15 per cent rental rebate granted by JTC as part of the Government's Resilience Package.
Many are small and medium-sized enterprises occupying the cheapest of the ex-JTC factories. And JTC rents are generally below market rates.
Property consultants had said that they cannot expect Mapletree to offer them the same low rates.
In any case, Mapletree had said that 1,448 of the industrial trust's flatted and stack-up factories, as well as warehouses, would benefit from a 5 per cent rental cap - of JTC's rent in July 2007 - when they renewed their leases before this month.
There is no cap for the remaining 108 - 7 per cent of the total - tenants in its business park buildings.
Mapletree Investments' chief executive (Industrial) Phua Kok Kim said yesterday it has stuck to the rental cap. He said new tenants are signing leases at higher rates, which shows that the properties are 'under-rented and there is potential for organic growth'.
But any rise is likely to be gradual, said Mapletree group chief financial officer Wong Mun Hoong.
Mr Phua added: 'All our rents are subject to competitive market forces of supply and demand, so even when the rental cap of 5 per cent is lifted for non-business park space, the renewal rents will still be subject to market forces.'
JOYCE TEO
ST : Far East gears up Inessence brand for upscale crowd
Jul 1, 2010
Far East gears up Inessence brand for upscale crowd
By Dickson Li
A LUXURY brand of exclusive apartments that take creature comforts to a new level has been unveiled by Far East Organization.
Its Inessence brand, launched yesterday at the Skyline@Orchard Boulevard showflat along River Valley Road, allows buyers to work with a design team to plan their apartments and choose upscale fixtures 'at no extra cost', said Far East executive director of development and planning Chng Kiong Huat.
Residents will be serviced by a dedicated concierge team and their properties will be protected by a security system that distinguishes between guests and residents.
Inessence currently comprises three separate developments: Alba at Cairnhill Rise, which will cost about $2,900
per sq ft (psf); Boulevard Vue at Cuscaden Walk, priced at $3,700 psf; and Skyline@Orchard Boulevard at Angullia Park, which will set buyers back $3,900 psf.
Boulevard Vue features two penthouses, one of which is 11,000 sq ft and boasts its own swimming pool in the sky. The other, an 8,000 sq ft unit, has already been sold.
Far East's executive director and chief operating officer of property sales, Mr Chia Boon Kuah, wants Inessence to tap the real estate market for high net worth individuals here.
'In the Asia Pacific, excluding Japan, high net worth individuals allocate 28 per cent of their wealth to real estate, and 60 per cent of that is allocated to residential,' said Mr Chia.
'Here in Singapore, we have the highest concentration of millionaire households in the world.'
Mr Chia remains bullish about property, despite a Citigroup report this week that expressed fears of an oversupply of upscale homes.
It said one-third of prime District 9 units due for completion in the next 12 to 15 months remain unsold.
Mr Chia said: 'In 2007, at the peak of the property market, the market sold 1,004 units worth $6.4 billion.'
Citing surveys indicating that Singapore has become one of the world's most liveable cities, he said location will be one of the apartments' main draws.
'Today's Singapore is far more interesting, vibrant and cosmopolitan than three years ago.
'In the first six months, the market sold only 238 units, so if we double that (for the full year), we believe that there is still that upside.'
Far East gears up Inessence brand for upscale crowd
By Dickson Li
A LUXURY brand of exclusive apartments that take creature comforts to a new level has been unveiled by Far East Organization.
Its Inessence brand, launched yesterday at the Skyline@Orchard Boulevard showflat along River Valley Road, allows buyers to work with a design team to plan their apartments and choose upscale fixtures 'at no extra cost', said Far East executive director of development and planning Chng Kiong Huat.
Residents will be serviced by a dedicated concierge team and their properties will be protected by a security system that distinguishes between guests and residents.
Inessence currently comprises three separate developments: Alba at Cairnhill Rise, which will cost about $2,900
per sq ft (psf); Boulevard Vue at Cuscaden Walk, priced at $3,700 psf; and Skyline@Orchard Boulevard at Angullia Park, which will set buyers back $3,900 psf.
Boulevard Vue features two penthouses, one of which is 11,000 sq ft and boasts its own swimming pool in the sky. The other, an 8,000 sq ft unit, has already been sold.
Far East's executive director and chief operating officer of property sales, Mr Chia Boon Kuah, wants Inessence to tap the real estate market for high net worth individuals here.
'In the Asia Pacific, excluding Japan, high net worth individuals allocate 28 per cent of their wealth to real estate, and 60 per cent of that is allocated to residential,' said Mr Chia.
'Here in Singapore, we have the highest concentration of millionaire households in the world.'
Mr Chia remains bullish about property, despite a Citigroup report this week that expressed fears of an oversupply of upscale homes.
It said one-third of prime District 9 units due for completion in the next 12 to 15 months remain unsold.
Mr Chia said: 'In 2007, at the peak of the property market, the market sold 1,004 units worth $6.4 billion.'
Citing surveys indicating that Singapore has become one of the world's most liveable cities, he said location will be one of the apartments' main draws.
'Today's Singapore is far more interesting, vibrant and cosmopolitan than three years ago.
'In the first six months, the market sold only 238 units, so if we double that (for the full year), we believe that there is still that upside.'
BT : China property buyers go global as yuan throws off its shackles
Business Times - 01 Jul 2010
China property buyers go global as yuan throws off its shackles
They made up 17% of foreign property purchases in S'pore in Q1 2010
(LONDON/HONG KONG) China's notorious property bubble could become its next big export with a stronger yuan giving its newly rich the buying power to splash out in the world's most sought-after property markets.
Buoyed by hopes of gains in the yuan after its US dollar peg was shed on June 19, Chinese investors are chasing discounted apartments from London to Singapore with a view to reducing their exposure to an overheated domestic market.
'I think you will start to see more strength in that currency and that will give further impetus to look elsewhere for investments,' said James Moss, managing director of upmarket UK real estate services company Curzon Investment Property.
'The whole economic situation (in China) is prone to change and so people are looking for a safe haven for their money,' said Mr Moss, noting his client base was now 75 per cent Chinese, from 95 per cent expatriate UK investors five years ago.
Despite vast state wealth and one of the world's strongest economies, China's influence on overseas real estate markets has so far been eclipsed by Middle Eastern investors, private equity funds and other sovereign buyers from South Korea or Singapore.
Chinese property investors have so far mostly confined their acquisitions to domestic markets, pushing average prices up by 77 per cent in five years and forcing the government to enact tough measures to keep homes affordable.
With property tightening measures at home and the value of its currency set to firm, analysts see more buyers branching out into overseas markets that promise attractive gains with fewer restrictions.
China abandoned a 23- month-old peg to the US dollar last month and, even though analysts do not expect the currency to be fully convertible any time soon, further appreciation is likely, boosting the overseas purchasing power of Chinese investors.
The People's Bank of China has said exchange rate reform would be gradual and that it will ensure the yuan could both rise and fall depending on market conditions.
The yuan is seen up 2.4 per cent against the US dollar by year's end, hitting 6.67 yuan, a Reuters poll showed.
Data from real estate broker Knight Frank showed that more than one in 10 new-build residential properties in London were sold to Chinese or Hong Kong buyers in the year to March, the highest share of the market by any offshore investors.
In Hong Kong, a fifth of luxury apartments are purchased by mainland Chinese, said Alva To, head of consulting for North Asia at property broker DTZ, citing industry figures.
Developers also hope Chinese will tap new frontiers, from Bali to Dubai.
Dubai Pearl FZ LLC plans to market its upmarket homes in Beijing and Shanghai, while Indonesia's PT Dua Cahaya Anugrah also plans to market its latest Bali beach villas across China.
'As Asian domestic markets show their own signs of difficulties, Chinese buyers in particular are keen to invest in markets they regard as more secure than their own if they can get through the regulatory minefield and release the funds,' Liam Bailey, Knight Frank's head of residential research, said.
A relentless rise in domestic property prices since house ownership was legalised in 1998 has fostered a strong preference for bricks and mortar over volatile equities among Chinese, already known as strong savers and investors.
It's not only London house-sellers that have caught the eye of the Chinese. In Asia, developers such as Hong Kong's Sun Hung Kai and Singapore's CapitaLand, have also marketed their swanky flats to Chinese buyers.
A DTZ report in late May showed Chinese buyers made up 17 per cent of foreign property purchases in Singapore in first quarter 2010, making Chinese the third most prolific overseas buyers in the city-state. - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
China property buyers go global as yuan throws off its shackles
They made up 17% of foreign property purchases in S'pore in Q1 2010
(LONDON/HONG KONG) China's notorious property bubble could become its next big export with a stronger yuan giving its newly rich the buying power to splash out in the world's most sought-after property markets.
Buoyed by hopes of gains in the yuan after its US dollar peg was shed on June 19, Chinese investors are chasing discounted apartments from London to Singapore with a view to reducing their exposure to an overheated domestic market.
'I think you will start to see more strength in that currency and that will give further impetus to look elsewhere for investments,' said James Moss, managing director of upmarket UK real estate services company Curzon Investment Property.
'The whole economic situation (in China) is prone to change and so people are looking for a safe haven for their money,' said Mr Moss, noting his client base was now 75 per cent Chinese, from 95 per cent expatriate UK investors five years ago.
Despite vast state wealth and one of the world's strongest economies, China's influence on overseas real estate markets has so far been eclipsed by Middle Eastern investors, private equity funds and other sovereign buyers from South Korea or Singapore.
Chinese property investors have so far mostly confined their acquisitions to domestic markets, pushing average prices up by 77 per cent in five years and forcing the government to enact tough measures to keep homes affordable.
With property tightening measures at home and the value of its currency set to firm, analysts see more buyers branching out into overseas markets that promise attractive gains with fewer restrictions.
China abandoned a 23- month-old peg to the US dollar last month and, even though analysts do not expect the currency to be fully convertible any time soon, further appreciation is likely, boosting the overseas purchasing power of Chinese investors.
The People's Bank of China has said exchange rate reform would be gradual and that it will ensure the yuan could both rise and fall depending on market conditions.
The yuan is seen up 2.4 per cent against the US dollar by year's end, hitting 6.67 yuan, a Reuters poll showed.
Data from real estate broker Knight Frank showed that more than one in 10 new-build residential properties in London were sold to Chinese or Hong Kong buyers in the year to March, the highest share of the market by any offshore investors.
In Hong Kong, a fifth of luxury apartments are purchased by mainland Chinese, said Alva To, head of consulting for North Asia at property broker DTZ, citing industry figures.
Developers also hope Chinese will tap new frontiers, from Bali to Dubai.
Dubai Pearl FZ LLC plans to market its upmarket homes in Beijing and Shanghai, while Indonesia's PT Dua Cahaya Anugrah also plans to market its latest Bali beach villas across China.
'As Asian domestic markets show their own signs of difficulties, Chinese buyers in particular are keen to invest in markets they regard as more secure than their own if they can get through the regulatory minefield and release the funds,' Liam Bailey, Knight Frank's head of residential research, said.
A relentless rise in domestic property prices since house ownership was legalised in 1998 has fostered a strong preference for bricks and mortar over volatile equities among Chinese, already known as strong savers and investors.
It's not only London house-sellers that have caught the eye of the Chinese. In Asia, developers such as Hong Kong's Sun Hung Kai and Singapore's CapitaLand, have also marketed their swanky flats to Chinese buyers.
A DTZ report in late May showed Chinese buyers made up 17 per cent of foreign property purchases in Singapore in first quarter 2010, making Chinese the third most prolific overseas buyers in the city-state. - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Biggest-ever launch of new HDB flats
Business Times - 01 Jul 2010
Biggest-ever launch of new HDB flats
Strong demand seen for 2,696 flats in Punggol, Sengkang due to low prices
By UMA SHANKARI
THE Housing and Development Board launched close to 2,700 new build-to-order (BTO) flats at Punggol and Sengkang yesterday - the largest number of such flats ever offered at one go.
A total of 2,696 flats are being offered at Waterway Terraces in Punggol, and Fernvale Foliage and Rivervale Arc in Sengkang.
The move comes as the flash estimate for the HDB resale price index is due to be released today. The index will show how much resale prices of HDB flats rose or fell in the second quarter of this year
'By releasing such a huge supply of new flats a day before the HDB resale price index flash estimate, HDB is sending a clear message of its commitment to keep housing available and affordable for first-time home-buyers,' said Eugene Lim, associate director of ERA Asia-Pacific.
With yesterday's launch, HDB has now launched a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
Demand for the newly released flats is expected to be strong as their prices are low compared with those of nearby resale flats, analysts said. HDB has priced the new flats around 30-40 per cent less than the current resale prices of similar flats in the locality.
'Previous BTO flats were typically sold at 17 to 30 per cent cheaper than comparative flats in the respective vicinities of those BTO projects. And they were all over-subscribed,' said PropNex spokesman Adam Tan. 'Now, with even lower prices compared with similar resale flats, we can expect demand to increase.'
In Q1, resale flats in Punggol and Sengkang commanded cash-over-valuation sums that were slightly higher than the national average, demonstrating the popularity of flats in the two areas, Mr Tan said.
In particular, analysts expect the 1,072 premium flats at Waterway Terraces to be snapped up. The design for the project - the first public housing development along the upcoming Punggol waterway - was chosen after an international competition held last year. The winning design, by Group8asia and Aedas, incorporates many eco-friendly features.
'The flats next to the waterway are expected to be highly sought after,' said Mr Lim. 'Where else can you get waterfront housing at such affordable prices? We may see an oversubscription of five to six times for these flats.'
Prices at Waterway Terraces start from $186,000, $300,000 and $374,000 for three-, four- and five-room flats respectively.
The 2,696 flats comprise 238 two-room, 399 three-room, 1,585 four-room and 474 five-room units. As per HDB policy, 95 per cent of the supply will be set aside for first-time buyers.
HDB's plan is to launch at least 12,000 new BTO flats by September - and more if there is demand. Upcoming projects will have a good geographical spread, covering areas such as Bukit Panjang, Jurong West, Yishun and Woodlands, the agency said.
This month, HDB will launch about 1,000 BTO flats at Bukit Panjang and Jurong West.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Biggest-ever launch of new HDB flats
Strong demand seen for 2,696 flats in Punggol, Sengkang due to low prices
By UMA SHANKARI
THE Housing and Development Board launched close to 2,700 new build-to-order (BTO) flats at Punggol and Sengkang yesterday - the largest number of such flats ever offered at one go.
A total of 2,696 flats are being offered at Waterway Terraces in Punggol, and Fernvale Foliage and Rivervale Arc in Sengkang.
The move comes as the flash estimate for the HDB resale price index is due to be released today. The index will show how much resale prices of HDB flats rose or fell in the second quarter of this year
'By releasing such a huge supply of new flats a day before the HDB resale price index flash estimate, HDB is sending a clear message of its commitment to keep housing available and affordable for first-time home-buyers,' said Eugene Lim, associate director of ERA Asia-Pacific.
With yesterday's launch, HDB has now launched a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
Demand for the newly released flats is expected to be strong as their prices are low compared with those of nearby resale flats, analysts said. HDB has priced the new flats around 30-40 per cent less than the current resale prices of similar flats in the locality.
'Previous BTO flats were typically sold at 17 to 30 per cent cheaper than comparative flats in the respective vicinities of those BTO projects. And they were all over-subscribed,' said PropNex spokesman Adam Tan. 'Now, with even lower prices compared with similar resale flats, we can expect demand to increase.'
In Q1, resale flats in Punggol and Sengkang commanded cash-over-valuation sums that were slightly higher than the national average, demonstrating the popularity of flats in the two areas, Mr Tan said.
In particular, analysts expect the 1,072 premium flats at Waterway Terraces to be snapped up. The design for the project - the first public housing development along the upcoming Punggol waterway - was chosen after an international competition held last year. The winning design, by Group8asia and Aedas, incorporates many eco-friendly features.
'The flats next to the waterway are expected to be highly sought after,' said Mr Lim. 'Where else can you get waterfront housing at such affordable prices? We may see an oversubscription of five to six times for these flats.'
Prices at Waterway Terraces start from $186,000, $300,000 and $374,000 for three-, four- and five-room flats respectively.
The 2,696 flats comprise 238 two-room, 399 three-room, 1,585 four-room and 474 five-room units. As per HDB policy, 95 per cent of the supply will be set aside for first-time buyers.
HDB's plan is to launch at least 12,000 new BTO flats by September - and more if there is demand. Upcoming projects will have a good geographical spread, covering areas such as Bukit Panjang, Jurong West, Yishun and Woodlands, the agency said.
This month, HDB will launch about 1,000 BTO flats at Bukit Panjang and Jurong West.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Scotts Tower design undergoes revamp
Business Times - 01 Jul 2010
Scotts Tower design undergoes revamp
FAR East Organization has changed the architect and the design for Scotts Tower, located at the junction of Scotts and Cairnhill roads.
The eye-catching 153m, 31-storey tower was originally designed with 67 luxury apartments with panoramic views and had a built-up floor area of about 20,000 sq m.
In late 2009 it was reported that Far East was shrinking the units to make them more affordable. The original design was commissioned in 2006 and was planned to be launched in late 2007.
Architect Ole Scheeren, formerly a partner at Office of Metropolitan Architecture (OMA) will be replaced by Ben van Berkel of UNStudio.
The number of units is now expected to increase, and the new design is currently being planned.
'Market conditions and unit requirements have changed,' said Far East's executive director of development and planning Chng Kiong Huat. 'The large units did not quite fit with our current market needs.
'If we had a change of architect, the whole concept will be different, more current. We didn't want to have the same kind of look. We wanted a whole different approach.'
Ole Scheeren was the architect-in-charge of the CCTV Tower in Beijing. In March 2010, OMA announced that Scheeren had left to establish his own studio.
UNStudio was used by CapitaLand for its Raffles City project in Hangzhou and its failed bid for the South Beach integrated development site eventually won by City Developments in 2007.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Ringing the changes: The proposed new look of Scotts Tower (left) and the old design
Scotts Tower design undergoes revamp
FAR East Organization has changed the architect and the design for Scotts Tower, located at the junction of Scotts and Cairnhill roads.
The eye-catching 153m, 31-storey tower was originally designed with 67 luxury apartments with panoramic views and had a built-up floor area of about 20,000 sq m.
In late 2009 it was reported that Far East was shrinking the units to make them more affordable. The original design was commissioned in 2006 and was planned to be launched in late 2007.
Architect Ole Scheeren, formerly a partner at Office of Metropolitan Architecture (OMA) will be replaced by Ben van Berkel of UNStudio.
The number of units is now expected to increase, and the new design is currently being planned.
'Market conditions and unit requirements have changed,' said Far East's executive director of development and planning Chng Kiong Huat. 'The large units did not quite fit with our current market needs.
'If we had a change of architect, the whole concept will be different, more current. We didn't want to have the same kind of look. We wanted a whole different approach.'
Ole Scheeren was the architect-in-charge of the CCTV Tower in Beijing. In March 2010, OMA announced that Scheeren had left to establish his own studio.
UNStudio was used by CapitaLand for its Raffles City project in Hangzhou and its failed bid for the South Beach integrated development site eventually won by City Developments in 2007.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Ringing the changes: The proposed new look of Scotts Tower (left) and the old design
BT : Far East launches high-end Inessence brand
Business Times - 01 Jul 2010
Far East launches high-end Inessence brand
By NICHOLAS YEO
FAR East Organization (FEO) launched its luxury development brand 'Inessence' along with a sneak preview of 'Skyline @ Orchard Boulevard' yesterday.
Four developments, Skyline, Alba, Boulevard Vue and Scotts Tower will come under this brand.
Two hallmarks of the 'Inessence' Projects are the white plan concept which allows customers to customise the unit layout and the use of well-known architects, such as Arquitectonica and Fumihiko Maki.
'Inessence' was conceptualised one to two years ago, with the launch of Boulevard Vue and Alba.
FEO has been building the brand name 'through the buyers, one on one'. 'Now that the product has proven itself, we are launching the brand,' said Chia Boon Kuah, chief operating officer of property sales.
Chng Kiong Huat, executive director for development and planning, said: 'We like to believe we are a supermarket of sorts, we sell properties ranging from the simplest to the most luxurious. 'We want to market a product that is clear and direct regarding luxury and to do this, we need a clear brand.'
As the market becomes more sophisticated, FEO believes there is a greater need for market segmentation.
Of the four projects, Boulevard Vue and Alba have already been launched. Skyline will be launched later this year. According to Mr Chia, Skyline will be priced from $3,900 psf onwards.
Skyline will be built on the former Skyline Angullia site, which was bought by FEO in 2006 for $100 million, at $1,073 psf ppr. Breakeven was estimated then to be about $1,400 psf. Currently, 'Alba is marketing for $2,900 psf onwards and Boulevard Vue at $3,700 psf onwards', said Mr Chia.
As of May, nine out of 28 units at Boulevard Vue had been sold. In the month of May, two units were sold at an average price of $2,971 psf. As for Alba, 18 out of 50 units have been sold. The transacted prices ranged from about $2,000 to $2,550 psf.
Boulevard Vue's units are large, ranging from 4,500 sq ft to 11,054 sq ft. In contrast, Alba's and Skyline's unit sizes start from 1,862 sq ft and 1,744 sq ft respectively. The expected TOP date for Boulevard Vue is 2013, Alba the year after and Skyline in 2015.
A launch date has not been set for Scotts Tower. On the topic of pricing strategies, Mr Chia said, 'We respond to the market when we think it is appropriate.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Far East launches high-end Inessence brand
By NICHOLAS YEO
FAR East Organization (FEO) launched its luxury development brand 'Inessence' along with a sneak preview of 'Skyline @ Orchard Boulevard' yesterday.
Four developments, Skyline, Alba, Boulevard Vue and Scotts Tower will come under this brand.
Two hallmarks of the 'Inessence' Projects are the white plan concept which allows customers to customise the unit layout and the use of well-known architects, such as Arquitectonica and Fumihiko Maki.
'Inessence' was conceptualised one to two years ago, with the launch of Boulevard Vue and Alba.
FEO has been building the brand name 'through the buyers, one on one'. 'Now that the product has proven itself, we are launching the brand,' said Chia Boon Kuah, chief operating officer of property sales.
Chng Kiong Huat, executive director for development and planning, said: 'We like to believe we are a supermarket of sorts, we sell properties ranging from the simplest to the most luxurious. 'We want to market a product that is clear and direct regarding luxury and to do this, we need a clear brand.'
As the market becomes more sophisticated, FEO believes there is a greater need for market segmentation.
Of the four projects, Boulevard Vue and Alba have already been launched. Skyline will be launched later this year. According to Mr Chia, Skyline will be priced from $3,900 psf onwards.
Skyline will be built on the former Skyline Angullia site, which was bought by FEO in 2006 for $100 million, at $1,073 psf ppr. Breakeven was estimated then to be about $1,400 psf. Currently, 'Alba is marketing for $2,900 psf onwards and Boulevard Vue at $3,700 psf onwards', said Mr Chia.
As of May, nine out of 28 units at Boulevard Vue had been sold. In the month of May, two units were sold at an average price of $2,971 psf. As for Alba, 18 out of 50 units have been sold. The transacted prices ranged from about $2,000 to $2,550 psf.
Boulevard Vue's units are large, ranging from 4,500 sq ft to 11,054 sq ft. In contrast, Alba's and Skyline's unit sizes start from 1,862 sq ft and 1,744 sq ft respectively. The expected TOP date for Boulevard Vue is 2013, Alba the year after and Skyline in 2015.
A launch date has not been set for Scotts Tower. On the topic of pricing strategies, Mr Chia said, 'We respond to the market when we think it is appropriate.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Auctions likely to pick up steam: Colliers
Business Times - 01 Jul 2010
Auctions likely to pick up steam: Colliers
46 properties were sold at auction in H1 2010, with a total sale value of $87m
By FELDA CHAY
THE local property auction scene is likely to keep buzzing amid the improving economic climate, interest in properties approaching Temporary Occupation Permit (TOP) and low interest rates, says Colliers International.
The property consultancy released its sector outlook for the second half of the year after healthy growth in the first six months.
Its deputy managing director (agency and business services) and auctioneer Grace Ng said: 'In particular, the auction market could see a substantial number of sub-sales by owners of properties that are approaching TOP.
'Interest for such properties tends to be high due to their near-term rental generation ability, as well as near-term owner-occupation opportunity.'
According to Colliers, 46 properties were sold at auction in the first half of 2010, with a total sale value of $86.99 million.
About $72.4 million was generated from the sale of 54 properties in the same period last year.
Landed properties, in particular, pulled their weight in the first six months of this year.
Seven landed residential properties worth $20.08 million were transacted at auction, accounting for 23.1 per cent of sales value during the period.
Ms Ng said: 'Landed residential properties have traditionally been popular due to the grant of land title as against strata title accorded for ownership of apartments and condominiums.
'Their limited supply in land-scarce Singapore has further honed their prestige attractiveness among home buyers.'
Another strong performer in the first half was retail, with nine such properties worth $20.07 million sold at auction, accounting for 23.1 per cent of the total sales value.
Ms Ng said: 'The popularity of retail properties could be attributed to the attractive rental yields that are estimated at between 5 and 6 per cent.
'This entices investors to park their funds in such properties to seek higher returns, compared with the paltry interest rate offered by most financial institutions.'
Coupled with expectations that Singapore's inflation is likely to rise to between 2.5 and 3.5 per cent this year, and high liquidity in the market, savvy investors are more likely to sniff out properties to park their funds, Ms Ng said.
'The low interest rate environment also serves as another possible push factor for buyers to take on mortgages at attractive rates,' she said.
The data provided by Colliers also shows 440 properties were put up for auction in the first six months of 2010, matching the number auctioned in the same period last year.
Of the 440 properties, 378 were put up by owners - higher than the 337 in 2009. The other 62 were mortgagee sales.
According to Colliers, this fall in mortgagee sales shows the vastly improved financial position of mortgagors on the back of a buoyant economy, falling unemployment and continued low interest rates.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Auctions likely to pick up steam: Colliers
46 properties were sold at auction in H1 2010, with a total sale value of $87m
By FELDA CHAY
THE local property auction scene is likely to keep buzzing amid the improving economic climate, interest in properties approaching Temporary Occupation Permit (TOP) and low interest rates, says Colliers International.
The property consultancy released its sector outlook for the second half of the year after healthy growth in the first six months.
Its deputy managing director (agency and business services) and auctioneer Grace Ng said: 'In particular, the auction market could see a substantial number of sub-sales by owners of properties that are approaching TOP.
'Interest for such properties tends to be high due to their near-term rental generation ability, as well as near-term owner-occupation opportunity.'
According to Colliers, 46 properties were sold at auction in the first half of 2010, with a total sale value of $86.99 million.
About $72.4 million was generated from the sale of 54 properties in the same period last year.
Landed properties, in particular, pulled their weight in the first six months of this year.
Seven landed residential properties worth $20.08 million were transacted at auction, accounting for 23.1 per cent of sales value during the period.
Ms Ng said: 'Landed residential properties have traditionally been popular due to the grant of land title as against strata title accorded for ownership of apartments and condominiums.
'Their limited supply in land-scarce Singapore has further honed their prestige attractiveness among home buyers.'
Another strong performer in the first half was retail, with nine such properties worth $20.07 million sold at auction, accounting for 23.1 per cent of the total sales value.
Ms Ng said: 'The popularity of retail properties could be attributed to the attractive rental yields that are estimated at between 5 and 6 per cent.
'This entices investors to park their funds in such properties to seek higher returns, compared with the paltry interest rate offered by most financial institutions.'
Coupled with expectations that Singapore's inflation is likely to rise to between 2.5 and 3.5 per cent this year, and high liquidity in the market, savvy investors are more likely to sniff out properties to park their funds, Ms Ng said.
'The low interest rate environment also serves as another possible push factor for buyers to take on mortgages at attractive rates,' she said.
The data provided by Colliers also shows 440 properties were put up for auction in the first six months of 2010, matching the number auctioned in the same period last year.
Of the 440 properties, 378 were put up by owners - higher than the 337 in 2009. The other 62 were mortgagee sales.
According to Colliers, this fall in mortgagee sales shows the vastly improved financial position of mortgagors on the back of a buoyant economy, falling unemployment and continued low interest rates.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TODAY ONLINE : Property auction market up 20% on-year
Property auction market up 20% on-year
Buying interest remains keen as liquidity in market is high
05:55 AM Jul 01, 2010
by Jo-Ann Huang joannhuang@mediacorp.com.sg
SINGAPORE - The Singapore property auction market saw a 20-per-cent rise on-year in the first half of this year to $87 million, according to property consultants Colliers International.
A total of 440 properties were put up for auction - of which 378 were from property owners while 62 were mortgagee sales.
Colliers said the sharp fall in the number of properties put up for mortgage sale is a reflection of the vastly-improved financial position of mortgagors.
April saw the highest value from auctions when 12 properties, with a total value of more than $24.4 million, changed hands.
There was a lull in May, when only two properties were sold for $6.89 million.
This could be due to concerns over the European debts, as well as the tension between North and South Korea that sent jitters through the stock market, said Colliers.
Buying interest at auctions will also remain keen as liquidity in the market is high and more investors are looking to real estate to hedge against inflation.
The sale of seven landed properties contributed 23.1 per cent or $20.08 million to auction transactions during the six-month period.
Four of the seven landed properties are in Bukit Timah.
Other types of properties sold by auction are retail properties, which contributed $20.07 million or 23.1 per cent to total sales; as well as high-end apartments which contributed $13.38 million or 15.4 per cent.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Buying interest remains keen as liquidity in market is high
05:55 AM Jul 01, 2010
by Jo-Ann Huang joannhuang@mediacorp.com.sg
SINGAPORE - The Singapore property auction market saw a 20-per-cent rise on-year in the first half of this year to $87 million, according to property consultants Colliers International.
A total of 440 properties were put up for auction - of which 378 were from property owners while 62 were mortgagee sales.
Colliers said the sharp fall in the number of properties put up for mortgage sale is a reflection of the vastly-improved financial position of mortgagors.
April saw the highest value from auctions when 12 properties, with a total value of more than $24.4 million, changed hands.
There was a lull in May, when only two properties were sold for $6.89 million.
This could be due to concerns over the European debts, as well as the tension between North and South Korea that sent jitters through the stock market, said Colliers.
Buying interest at auctions will also remain keen as liquidity in the market is high and more investors are looking to real estate to hedge against inflation.
The sale of seven landed properties contributed 23.1 per cent or $20.08 million to auction transactions during the six-month period.
Four of the seven landed properties are in Bukit Timah.
Other types of properties sold by auction are retail properties, which contributed $20.07 million or 23.1 per cent to total sales; as well as high-end apartments which contributed $13.38 million or 15.4 per cent.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
TODAY ONLINE : 2,696 BTO flats up for grabs in Punggol, Sengkang
2,696 BTO flats up for grabs in Punggol, Sengkang
05:55 AM Jul 01, 2010
SINGAPORE - Three Build-To-Order (BTO) projects in Punggol and Sengkang were launched yesterday - the largest number of such projects offered by the HDB in a single launch so far.
Out of the nearly 2,700 flats to be built, about 1,600 will be four-room units, with two, three and five-room flats making up the rest. Ninety-five per cent of the public supply will be set aside for first-timers.
The BTO project in Punggol, Waterway Terraces, will be the first waterfront housing development. It offers 1,072 premium flats and boasts eco-friendly features, such as solar power to supplement lighting needs in common areas.
Prices of the three-room units start from $186,000, while those of four and five-room units start from $300,000 and $374,000.
In Sengkang, the Fernvale Foliage offers 504 standard flats while another BTO project in the area, Rivervale Arc, offers 1,120 standard flats.
They will cost less than flats in Waterway Terraces, with prices ranging from $68,000 to $$279,000.
With yesterday's launch, the HDB said it would have offered a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
The HDB plans to launch at least 12,000 BTO flats by September and more if there is a demand for them.
Next month, flat buyers can look forward to the launch of about 1,000 BTO flats in Bukit Panjang and Jurong West.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jul 01, 2010
SINGAPORE - Three Build-To-Order (BTO) projects in Punggol and Sengkang were launched yesterday - the largest number of such projects offered by the HDB in a single launch so far.
Out of the nearly 2,700 flats to be built, about 1,600 will be four-room units, with two, three and five-room flats making up the rest. Ninety-five per cent of the public supply will be set aside for first-timers.
The BTO project in Punggol, Waterway Terraces, will be the first waterfront housing development. It offers 1,072 premium flats and boasts eco-friendly features, such as solar power to supplement lighting needs in common areas.
Prices of the three-room units start from $186,000, while those of four and five-room units start from $300,000 and $374,000.
In Sengkang, the Fernvale Foliage offers 504 standard flats while another BTO project in the area, Rivervale Arc, offers 1,120 standard flats.
They will cost less than flats in Waterway Terraces, with prices ranging from $68,000 to $$279,000.
With yesterday's launch, the HDB said it would have offered a total of 8,828 new BTO flats for sale in the first six months of this year. This is equivalent to the BTO supply for the whole of last year.
The HDB plans to launch at least 12,000 BTO flats by September and more if there is a demand for them.
Next month, flat buyers can look forward to the launch of about 1,000 BTO flats in Bukit Panjang and Jurong West.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
TODAY ONLINE : Far East launches luxury brand
Far East launches luxury brand
05:55 AM Jul 01, 2010
by Zul Othman
SINGAPORE - Property developer Far East Organization yesterday introduced its luxury brand Inessence, which is made up of exclusive condominiums in prime locations in the Orchard Road area.
However, they don't come cheap: Prices for a residence at Skyline@Orchard Boulevard at Angullia Park start at $6.8 million while rates for an apartment at Cuscaden Walk's Boulevard Vue start from $16.6 million. Apartments at Alba in Cairnhill Rise start from $5.4 million.
At these prices, residents can look forward to a custom-built security system - which "automatically distinguishes" between guests and condo owners - as well as access to their own concierge team.
Announcing the venture yesterday, Far East chief operating officer (Property Sales) Chia Boon Kuah said there is a market for ultra expensive homes.
He said: "In 2007, at the peak of the market, the demand was for 1,400 units of luxury apartments. At $5 million each, total sales came to more than $6.4 billion (but) in the first half of this year, 238 units sold have brought in $1.6 billion."
These luxury apartments, Mr Chia said, are being targeted at foreign buyers who want to get into the high-end property market following the economic recovery.
Colliers International's director (Research and Advisory) Tay Huey Ying told MediaCorp that for the first five months alone, the number of foreign purchasers had already exceeded 55 per cent of last year's total.
"With the recovery of the economy gaining traction, we expect to see more (foreign buyers) coming to Singapore, especially given the cooling measures put in place by governments of Asian cities for their respective markets," Mr Tay said.
According to Mr Chia, sales have been encouraging: Already 18 out of Alba's 50 apartments have been sold while nine out of the 28 units at Boulevard Vue have been snapped up. Construction of both developments will be completed in the next four years.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jul 01, 2010
by Zul Othman
SINGAPORE - Property developer Far East Organization yesterday introduced its luxury brand Inessence, which is made up of exclusive condominiums in prime locations in the Orchard Road area.
However, they don't come cheap: Prices for a residence at Skyline@Orchard Boulevard at Angullia Park start at $6.8 million while rates for an apartment at Cuscaden Walk's Boulevard Vue start from $16.6 million. Apartments at Alba in Cairnhill Rise start from $5.4 million.
At these prices, residents can look forward to a custom-built security system - which "automatically distinguishes" between guests and condo owners - as well as access to their own concierge team.
Announcing the venture yesterday, Far East chief operating officer (Property Sales) Chia Boon Kuah said there is a market for ultra expensive homes.
He said: "In 2007, at the peak of the market, the demand was for 1,400 units of luxury apartments. At $5 million each, total sales came to more than $6.4 billion (but) in the first half of this year, 238 units sold have brought in $1.6 billion."
These luxury apartments, Mr Chia said, are being targeted at foreign buyers who want to get into the high-end property market following the economic recovery.
Colliers International's director (Research and Advisory) Tay Huey Ying told MediaCorp that for the first five months alone, the number of foreign purchasers had already exceeded 55 per cent of last year's total.
"With the recovery of the economy gaining traction, we expect to see more (foreign buyers) coming to Singapore, especially given the cooling measures put in place by governments of Asian cities for their respective markets," Mr Tay said.
According to Mr Chia, sales have been encouraging: Already 18 out of Alba's 50 apartments have been sold while nine out of the 28 units at Boulevard Vue have been snapped up. Construction of both developments will be completed in the next four years.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
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