Broad-based growth in Q2 property prices

Momentum of recovery in private residential rents also picked up. -BT

PRIVATE home prices generally rose at a slightly slower pace in Q2 than they did in Q1, but latest official numbers show a broad-based growth in property prices - with stronger quarter-on-quarter gains for office, shop and industrial properties, as well as HDB resale flat prices in Q2 than in the first quarter.

The momentum of recovery in private residential rents also picked up in the second quarter, supported by an acceleration in hiring of expats as Singapore's economy continues to expand. 'Sentiment among developers and market watchers probably moderated from the end of first quarter as a result of the eurozone's economic problems, but the recent spectacular official GDP growth forecast for Singapore has probably helped to restore some confidence,' said Real Estate Developers Association of Singapore CEO Steven Choo.

The Urban Redevelopment Authority's (URA) benchmark overall price index for private homes rose 5.3 per cent in the second quarter over the preceding quarter, close to the 5.6 per cent per cent hike in Q1.

The price index for office space increased 4.6 per cent quarter on quarter in Q2, a bigger gain than the 1.8 per cent quarter-on-quarter rise in Q1.

Likewise, the shop price index went up 3.9 per cent in Q2, following a 1.8 per cent pick-up in the first three months. URA's flatted factory and warehouse price indices rose 5.4 and 9.4 per cent in Q2. In Q1, each of these increased 1.5 per cent.

In the private housing market, prices of detached houses rose 6.8 per cent in Q2, slower than the 9.6 per cent increase in Q1. Semi-D and terrace houses appreciated 6 per cent and 5.6 per cent respectively in Q2 - compared with increases of 7.5 and 7.4 per cent in the first three months.

Non-landed home prices in Core Central Region (which includes the prime districts, Marina Bay and Sentosa Cove) climbed 5.4 per cent in Q2, higher than the 4.4 per cent growth in Q1. Likewise, the price index for Outside Central Region (where suburban condos are located) rose 5.7 per cent in Q2 after increasing 4.3 per cent in Q1.

However, in Rest of Central Region the pace of price gain slowed from 7.9 per cent in the first quarter to 4.6 per cent in Q2.

In the primary market, developers sold a total of 4,033 private homes in Q2, down 7.9 per cent from Q1. In the secondary market, strong buying momentum was also seen in the resale market, with 4,682 private homes changing hands in Q2, although this was 5.6 per cent lower than the first three months of the year. However, subsale volumes eased 27.4 per cent, from 996 deals in Q1 to 723 in Q2.

'Resales were strong in Q2 because prices are more reasonable for older, completed properties than new project launches. On the other hand, subsales (which are secondary-market deals involving projects that have yet to receive Certificate of Statutory Completion) come in waves. Those who bought homes from developers in the past few months are probably waiting for prices to rise further before they offload their units,' suggests a market watcher.

In the leasing market, URA's All Residential rental index rose 5.9 per cent in Q2 over the preceding quarter, compared with a 4.7 per cent quarter-on-quarter gain in Q1. The index has appreciated 10.9 per cent since end-2009.

Rents accelerated for both landed and non-landed private homes. Terrace houses led the landed segment, with rents rising 6.6 per cent in Q2, followed by semi-detached houses (up 5.6 per cent) and detached (up 4.6 per cent). For non-landed homes, rents in Core Central Region appreciated the most, by 6.4 per cent, followed by Outside Central Region (up 6.1 per cent) and Rest of Central Region (5.1 per cent).

However, the latest All Residential rental index is about 11.1 per cent below its peak in Q2 2008. Jones Lang LaSalles' head of residential Jacqueline Wong said the latest official figures confirm feedback from the ground. Monthly rentals of four-bedroom apartments in high-end developments such as Grange Residences, Draycott 8 and Ardmore Park are hitting $16,000-$18,000 on average - an improvement from $14,000-$15,000 in the second half of last year.

'But we still haven't achieved the peak levels of $18,000-$22,000 seen in the late 2007 to mid-2008 period,' Ms Wong added. 'We're seeing rehiring of expats again but housing allowances are not as generous as before.'

Ms Wong is predicting flattish rents until the end of this year, citing new competition with the impending completion of The Orchard Residences and The Marq on Paterson Hill.

URA numbers show 4,379 private homes received Temporary Occupation Permit (TOP) in Q2, compared with 1,407 units in Q1. The surge in new completions pushed up the islandwide vacancy rate for private homes to 5.4 per cent at end-Q2, from 4.6 per cent at end-Q1. But this could ease again as owners or tenants move into the new homes.

Major residential projects completed in April-June 2010 include One Amber, Marina Bay Residences, Dakota Residences and The Arte.

With a further 4,958 units expected to receive TOP by year end, the full-year tally will be 10,744, slightly above last year's 10,488 units.

Mon, Jul 26, 2010
The Business Times

By Kalpana Rashiwala

2010 will be record growth year for Singapore: PM Lee

HOUSTON, TEXAS: Prime Minister Lee Hsien Loong has said Singapore economy is on a "firm path" towards a record year.

He was commenting after the Ministry of Trade and Industry (MTI) upgraded Singapore's 2010 GDP growth forecast to a blistering 13 to 15 percent, outstripping estimates for China.

The revision followed the 16.9 percent year-on-year GDP growth in the first quarter while second-quarter expansion is estimated at 19.3 percent.

Mr Lee, speaking to reporters at the end of an official visit to the US, attributed the rebound mainly to the success of the two integrated resorts and a sharp increase in pharmaceutical output.

He said the two resorts, which opened early this year, "made a significant difference" this year and boosted tourism to Singapore.

Mr Lee also said Singapore should go into double-digit growth this year. But he tempered sentiments, saying that this is an exceptional year.

He said: "Numerically the growth figures may be higher than other countries. I would hesitate to compare myself to China. I think if you compare yourself to Shanghai they may well be ahead of us.

"But it's a good result and we should be happy but at the same time we should understand that it doesn't mean that next year you're going to get this, and the year after that you're going to get this."

Mr Lee said Singapore needs to press on with restructuring and improving productivity to sustain long-term growth.

He said: "This is a rebound. We are on a firm path upwards. Now we must make the most of this opportunity to implement the restructuring, the upgrading, the productivity improvement which we have been pursuing and talked about in the Budget.

"Because unless you get these longer term structural changes, we are not going to be able to sustain growth in the future years. And when we say 'sustain growth', we don't mean 9, 10 percent or 11 percent in future years but 3, 4, 5 percent steadily for another 10 years."

One issue being closely watched will be the property market. Mr Lee said the government will be mindful of the economy overheating with the strong growth - which will also mean having more foreign workers.

Mr Lee said: "I believe this year foreign worker numbers will go up in Singapore. It cannot be helped because with the market so tight, if we don't allow the foreign workers in you are going to have overheating.

"But we are managing the foreign worker numbers - the levies are being calibrated to moderate the inflow. Even with that, I would imagine there would be more than 100,000 extra foreign workers this year. I cannot see otherwise, but we have to accept that."

On Singapore's aim to raise the real median wage of Singaporeans by 30 percent in 10 years, Mr Lee described this as a "reasonable target".

He said: "It is not an easy task to achieve by any means because you are talking about the median wage, the 50th percentile, and that means a broad uplifting of the standard of living for Singaporeans and not just 10-20 per cent of the most successful Singaporeans.

"That means not just economic growth but also upgrading of workers, their jobs and training of the skills and restructuring so that when new companies come in they are able to make productive use of the workers whom we have re-trained. That is something we have to work towards. It is better for us to under-promise and over deliver than to make grand promise and then be disappointed!"

Mr Lee was also asked about the detention of a national serviceman under the Internal Security Act. He said it did not come as a surprise as there have been cases of self-radicalised Singaporeans before.

He added Singapore has systems to monitor trends, but the problem is a global one as the jihadist propaganda is now reaching a new audience with websites in English.

Mr Lee said: "We must expect our people to be exposed to the material, to read the websites, and once in a while you'll find somebody who goes astray and is misguided and may take another further step. We must be prepared for this to happen and have measures to detect and to intervene when necessary.

"It doesn't mean that you will succeed every single time. We have to succeed every single time. On the other side, the terrorist only has to succeed once! So we have to understand that that is the nature of the challenge we face."

Mr Lee was also asked about his thoughts on issues that may crop up at the next General Election due by 2012.

But he remained tight lipped.

"I think it's too early to say. I mean we are just midway through 2010, with a record economy. I have not decided when the election will be."

- CNA/ir
By Imelda Saad Posted: 14 July 2010 1000 hrs

Singapore GDP expands at record pace

Singapore’s economy expanded at a 26% annual pace in the second quarter after a record surge the previous three months, spurring the nation’s currency and adding to evidence of Asia’s resilience to the European crisis.

Singapore’s growth for the first quarter was revised to 45.9%, the fastest since records began in 1975, the trade ministry said today. Gross domestic product will rise between 13% and 15% in 2010, compared with an earlier forecast of as much as 9%, the ministry said.

A year after Singapore exited its worst recession since independence in 1965, tourists are arriving in record numbers, companies have increased hiring and vessels are leaving the city’s ports carrying more cargo. The island’s strengthening economy has added to an Asian rebound that prompted central banks to raise interest rates in recent weeks, even amid concern that Europe’s fiscal woes will slow the global recovery.

“Singapore will be among the fastest-growing countries not just in Asia, but the world, this year,” said Song Seng-Wun, an economist at CIMB Research Pte in Singapore. “Price pressures are already evident and we expect the central bank to be watching if inflation expectations are raised because of these numbers.”

Singapore’s growth has already prompted the central bank to allow the currency to strengthen to temper inflationary pressures. The Singapore dollar is used instead of interest rates to conduct monetary policy.

Currency Gains
The island’s currency added 0.6% to $1.3745 per US dollar as of 8:23 a.m., bringing this quarter’s gain to 1.4%. Growth last quarter was more than the median estimate for a 23% increase in a Bloomberg News survey of 12 economists.

Policy makers in neighboring Malaysia have raised interest rates three times this year, matching the number of increases by India’s central bank. In Taiwan, Governor Perng Fai-nan moved the key rate 12.5 basis points higher last month and the Bank of Korea unexpectedly increased its benchmark last week.

“With growth likely to remain above trend for the rest of the year, the Monetary Authority of Singapore may be inclined to maintain the policy of gradual appreciation at its October policy meeting,” Wai Ho Leong, a senior regional economist at Barclays Plc in Singapore, said before the report.

Slot Machines
The two casinos run by Genting Singapore Plc and Las Vegas Sands Corp. opened in February and April this year and have since attracted millions of visitors to their slot machines and baccarat and roulette tables.

The economy grew 19.3% in the second quarter from a year earlier, compared with the median estimate for a 17.3% gain in a Bloomberg News survey.

“Growth in the trade-related sectors was bolstered by healthy global trade flows, while the openings of the integrated resorts and higher visitor arrival numbers contributed to the growth in the tourism-related sectors,” the trade ministry said in a statement. “The financial services sector also grew strongly, supported by increased foreign exchange trading and domestic bank lending activities.”

Still, Singapore’s dependence on global trade may mean it’s unlikely to escape the impact of any renewed slowdown. Governments in Europe are embarking on austerity programs to cut budget deficits and households in some of the world’s largest economies are holding back spending, clouding the outlook for the rebound.

Exports Forecast
Singapore’s non-oil domestic exports will probably gain between 17% and 19% in 2010, from a previous projection of as much as 17%, the trade promotion agency said today.

Overseas shipments rose 28.7% in June from a year earlier, after increasing a revised 24.3% the month before, the government said today. Electronics exports by companies including Venture Corp., Singapore’s biggest electronics contract manufacturer, climbed 43.9% in June, while overseas sales by pharmaceutical makers gained 29.8%.

Manufacturing, which accounts for about a quarter of Singapore’s economy, climbed 45.5% from a year earlier in the three months through June, after gaining 38.2% in the three months through March. Pharmaceutical output has at least doubled every month from March to May.

The performance of Singapore’s pharmaceutical industry is volatile as production swings by companies such as Sanofi- Aventis SA can cause industrial output to fluctuate.

The island’s services industry grew 11.4% last quarter from a year earlier. The construction industry gained 13.5%.

Written by Bloomberg
Wednesday, 14 July 2010 09:28

Over $500m of Good Class Bungalows sold in Q1: CBRE

Its analysis of URA Realis caveats shows that 29 deals are sealed.

At least $500 million worth of Good Class Bungalows (GCBs) have changed hands in the first three months of this year, according to CB Richard Ellis.
The property consultancy's analysis of URA Realis caveats shows that 29 deals were sealed in Q1 for a total of $470.33 million. In addition, CBRE director (luxury homes) Douglas Wong confirmed that he brokered a $36.3 million transaction last month which has yet to be reflected in the caveats.

Market watchers say that further caveats for deals done in March may be captured over the next few weeks.

The deal brokered by Mr Wong, for 14 Bishopsgate, would also be the biggest in dollar quantum in Q1. The single-storey conservation bungalow is over 50 years old. The land area is 32,405 square feet and the property is being sold by members of the Wong family who once controlled Tien Wah Press.

Market watchers say that transactions are continuing to stream in this month, including a $23 million sale at Victoria Park (land area of 21,190 sq ft) and at Ladyhill Road, $23.5 million (land area of slightly over 16,000 sq ft). However, market watchers generally do not expect a repeat of last year when a record $1.72 billion of GCBs were transacted, as the number of deals this year is expected to dip amid rising prices.

William Wong, managing director of RealStar Premier Property, says: 'Current GCB prices are about 10-20 per cent higher than a year ago, depending on location of the bungalows. Those in prime areas such as Tanglin have gone up as much as 20 per cent.'

Agreeing, CBRE's Mr Wong says that properties in the Jervois/Chatsworth/ Bishopsgate areas fetched about $1,000 psf in the 2007 property boom. 'Today, people are asking $1,200-1,400 psf, and even $1,500 psf.'

A spokesman for FRN Properties says that in places such as King Albert Park and Brizay Park, asking prices are $900-$1,000 psf, compared to $500-$700 psf in the 2007/2008 period.

The price appreciation has created opportunities for flipping. For instance, a property on a 15,450 sq ft plot at Swettenham Road that had sold for $13 million or $841 psf last November changed hands again for $16.3 million or $1,055 psf in February. Then, a bungalow at Queen Astrid Park that had been transacted in August last year for $24 million or $877 psf found a new owner in February for $28.28 million ($1,033 psf).

Among the interesting GCB deals done in Q1 is the $28 million sale of a property at Binjai Park. The bungalow is believed to have been sold by Amtel Group boss Sudhir Gupta to another entrepreneur, Sareen Gajendra Singh, who owns Omni United (S) Pte Ltd. Both are Singapore citizens.

GCB investor Thomas Chan is said to have picked up a property at Queen Astrid Park for about $28.3 million from Zain Fancy, formerly head of Morgan Stanley Real Estate Investing for Asia Pacific. Mr Fancy is believed to have reaped a gross profit of over $4 million.

In January, Audi distributor Premium Automobiles - controlled by Hadi Tanaga - paid $31.5 million or $1,066 psf for 4 Swettenham Road.

Island Hospital founder and Napier Properties director Mark Wee is said to have bought 36 Belmont for $18.73 million.

A property at Dalvey Estate was picked up for $20 million; the buyer is understood to be a banker who is a Singapore PR.

GCBs, with their stringent planning requirements, are the creme de la creme of the housing market, at least on mainland Singapore. There are only about 2,400 such bungalows in 39 gazetted GCB areas.

Property agents cite anecdotal evidence of high net-worth mainland Chinese, Indians and others who have become Singapore PRs/citizens and who are buying GCBs.

Newsman Realty managing director KH Tan notes that local players have also been active in the GCB market. These include those upgrading from smaller homes as well as investors who own several GCBs.

Foreigners need permission from the Land Dealings (Approval) Unit (LDAU) before they can own landed property. On mainland Singapore, the main criteria are that they are Singapore PRs and that they make an adequate economic contribution.

However, non-PR foreigners may buy landed homes on Sentosa Cove subject to LDAU approval.

Whether on the mainland or on Sentosa Cove, the landed home a foreigner is allowed to buy usually must not exceed 15,000 sq ft in land area, although in some instances, property agents say that approval has been granted for PRs to buy GCBs with land areas slightly larger than this if part of the site is 'unusable' - for instance, if there is sloping ground which cannot be built on.

Foreigners may at any one time own just one landed home in Singapore and that too for owner occupation only.

On the mainland, foreigners also have to hold the property for at least three years before they may resell it. There is no minimum holding period for Sentosa Cove.

Fri, Apr 16, 2010
The Business Times

Private home sales rise 47% on-month in March to 1,761 units

SINGAPORE: Private home sales kept up their momentum in March, with 1,761 units changing hands, according to figures from the Urban Redevelopment Authority (URA).

This was up 47 per cent on-month and also the fourth highest monthly sales recorded since the start of URA's monthly series in June 2007.

Analysts said demand for new homes remains strong, despite more government measures to cool the market in February.

The prime and outlying areas showed the highest level of market activities. New homes in the prime districts accounted for 720 units of total sales. Projects in the outlying areas accounted for 776 units transacted, while city fringe areas accounted for 265 units sold.

The top two best selling developments were both in the suburbs. The Vision saw 236 units sold, while The Estuary had 212 units transacted. The third and fourth best sellers were 76 Shenton in the downtown area, which saw 202 units sold, and The Laurels, which moved 115 units.

Of the top five best selling projects in March, only the Coralis was in the city fringe area.

According to Colliers International, 44 per cent of sales in March were to HDB flat owners, up from 34 per cent in January and 33 per cent in February.

Colliers said this may be due to HDB upgraders rushing to lock in their private property purchases for fear of being caught in a double whammy situation, where private property prices rise beyond their means and HDB resale flat prices fall after the government stepped in to curb speculative activity in the HDB resale flat market in early March.

Going ahead, analysts said the sales volume and prices in the residential market are expected to continue to expand, fuelled by the expected growth in the regional economies and investment confidence.

The expected gradual appreciation of the Singapore dollar may also result in higher demand for Singapore assets by foreign investors which would include real estate here.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said in the absence of any market shock such as the introduction of a property capital gains tax, the number of private homes sold by developers could reach 13,000 to 15,000 units in 2010.

He also expects the robust buying demand of private suburban homes to lead to more land sales by the government. He said that in the short term, such land sales would sustain the market activities and even contribute to the growth in property prices.

Colliers expects the improved economic environment to give property market sentiment and confidence a further boost.

It expects April's launch and sales volume to stay robust at above the 1,000-unit level, but it said price-resistance - particularly at the mass-market level - may moderate sales from the strong performance in March.

Colliers also expects the strong buying momentum to continue at least into the second quarter. - CNA/vm

Singapore's GDP expands strongly by 13.1% on-year in first quarter

SINGAPORE: Singapore's GDP expanded strongly by 13.1 percent on a year-on-year basis in the first quarter of 2010.

It grew by 32.1 percent on a seasonally-adjusted quarter-on-quarter annualised basis.

In advance estimates released on Wednesday, the Ministry of Trade and Industry (MTI) said it expects the Singapore economy to grow by 7.0 to 9.0 percent in 2010.

MTI said growth was led by the manufacturing sector, which expanded by 139 percent in the first quarter of 2010 compared to a contraction of 29.0 percent in the fourth quarter last year.

It attributed this to a robust expansion of electronics production and a stronger-than-expected surge in biomedical manufacturing output.

The construction sector grew by 11.3 percent on a year-on-year basis in the first quarter, supported by sustained public sector civil engineering activities and an increase in the number of residential construction projects.

MTI said the services-producing industries also expanded, registering a growth of 8.4 percent on-year. Expansion was driven largely by wholesale trade, following sharp increases in exports of electronic goods.

Growth in the transport and storage, hotels and restaurants, as well as financial and business services also contributed to improved performance for the services sector.

In its external outlook, MTI said the global economy had shown further signs of improvement.

In the United States, the economic recovery has gradually broadened with growth in the manufacturing and services sector.

More importantly, MTI said it noted that the US labour market is also beginning to show signs of a turnaround with strong employment growth in March 2010. It said these developments would help shore up the recovery of private sector demand in the US.

Within Asia, economic growth is expected to remain firm, supported by China's buoyant demand for electronics goods and commodities. - CNA/de

New project selling well; 3rd en bloc site sold

The private homes market remains buoyant, with more than 200 units sold at a new launch.

THE private homes market remains buoyant, with more than 200 units sold at a new launch and the year's third collective sale site sealed.

UOL Group said it has sold more than 200 units of Waterbank at Dakota in Dakota Crescent at a preview that started on Wednesday. Prices ranged from $1,000 per sq ft (psf) to $1,300 psf.

With 616 units, it is the first project here without bay windows and planter boxes. Industry sources said there was stronger take-up for the smaller, more affordable units. Units range from a 484 sq ft one-bedder to a 2,820 sq ft penthouse.

Meanwhile, Culford Garden in Siglap has been sold en bloc to Fragrance Properties for $39 million, making it the third collective sale to be sealed this year.

Marketer Credo Real Estate said the land rate is about $632 psf per plot ratio, or $574 psf ppr, based on a gross plot ratio of 1.54, which includes balcony space. The tender, which closed on Thursday, attracted four offers, all of which were within the asking range of $37 million to $40 million.

The owners of the 24 units stand to reap an average of $1.625 million each.

The year's first collective sale was a Balestier industrial site that can be converted to residential use. The second was a cluster of 16 terraces in Fort Road.


By Joyce Teo
Mon, Apr 12, 2010
The Straits Times

Luxury home prices set to rebound this year, developers to replenish land banks

SINGAPORE : Those looking to buy into high-end living will have more options, with the launch of "The Residences at W Singapore" at Sentosa Cove this weekend.

With luxury homes touted to be star performers of 2010, market watchers expect developers to roll out more of them in coming months.

This could run down their land bank and drive up collective sales later in the year.

The launch of "The Residences at W Singapore" at Sentosa Cove suggests that developers are gearing up for a rebounding luxury property segment.

City Developments has priced its residential units there at S$2,500 to S$3,000 per square foot, at the high end of recent high end launches.

With demand returning for the high end luxury market, developer City Developments said it is looking to grow its presence in the segment.

"We had a very strong proportion of luxurious apartment during the 2006-07 period and subsequently we were concentrating quite a bit on the middle class and the upgraders. But now we are coming back to the luxury category. In fact, the prices here are about 20-25% below the 2007 peak, and we believe the sentiments are very positive now," said Chia Ngiang Hong, group GM at City Developments.

Mass and mid-tier property values are now about 5-8 per cent above the peaks of 2008.

And analysts said the high end is likely to catch up this year, mostly when the second integrated resort, Marina Bay Sands, is open for business.

Analysts said developers are likely to grow their presence in the luxury market to capitalise on rising prices.

"By and large, we are seeing a trickling effect of take-up... Probably (by) the second half of this year... we'll see the major luxury market starts to get sold out and developers will start to look at replenishing the land bank process," said Donald Han, marketing director at Cushman & Wakefield.

Market watchers, however, said residential rental prices will need to pick up first in order for prices of luxury residential property values to rise.

According to Cushman & Wakefield, rental prices have already started picking up in selected areas by 5-10 per cent so far this year.

Macquarie has raised its target price for City Developments to $9.44 and its earnings per share estimate for this year by 50 per cent, citing increased selling prices for new project launches.

But Macquarie has kept its "underperform" rating on City developments, saying higher property prices could mean more cooling measures from the authorities. - CNA /ls

Use sharper tools to fix property market flaws

There is room to re-examine market statistics in greater detail. -ST

I REFER to Mr Bobby Jayaraman's letter, 'New measures won't help market bloom' (Feb 23). There may be room to re-examine market statistics in greater detail and consider sharper tools to tackle specific problems instead of slapping stamp fees on sellers across the board.

The Urban Redevelopment Authority keeps statistics of property transactions. Nineteen different headings are listed for each transaction, including 'purchaser address indicator' which describes whether a buyer is from HDB or private housing, and 'type of sale' which describes whether a sale is new, resale or sub-sale.

A quick comparison of non-landed property sales in districts 9, 16 and 27 over the past year shows different transaction patterns in different locations.

For example, in district 9, 20 per cent were reported to be buyers with HDB 'address indicator' and 21 per cent of the 2,500 transactions were 'sub-sales'. In district 16, only 10 per cent were 'sub-sales' with 45 per cent buyers with HDB 'address indicator' in the 1,710 cases. In district 27, the total number of sales was 239, with 161 with HDB 'address indicator'.

Armed with such info, the authorities can use sharper tools to correct market imperfections caused in particular locations or by particular groups of people.

Sat, Mar 27, 2010
The Straits Times
Patrick Sio

Keen interest in high-end properties

POSH property seems to be back in vogue, with one recent launch snapped up and new high-end developments slated for previews in the coming days.

Home-hunters showed keen interest in Keppel Land's Reflections at Keppel Bay over the weekend, and projects in Sentosa, Nathan Road and Shenton Way are also apparently generating interest.

But while prices are robust and tipped to move up, they are still below the boom-time levels with some experts suggesting that developers are keen to cash in on the buoyant market while they can.

Reflections at Keppel Bay, a development of 1,129 apartments on the southern coast, saw a strong weekend response with 29 of the 30 units launched sold. Prices averaged $2,200 per sq ft (psf) although they hit as high as $2,600 psf.

That priced two-bedders at about $2 million, a three-bedroom unit at $2.5 million and a four-bedroom apartment at $6 million. This was the first time two-, three- and four-bedroom units were being sold from the centre tower, known for having the best waterfront views.

The 99-year leasehold development has six glass towers of 24 and 41 storeys and 11 shorter blocks of villa apartments.

Keppel Land chairman Choo Chiau Beng said yesterday that positive economic sentiments, the improved job market and the buzz sparked by the integrated resorts have helped re-ignite the property market.

Since Reflections' launch in 2007, almost 98 per cent of its 700 released units had been sold as of last month. It is expected to be completed in 2012.

Keppel Land's chief executive of its Singapore residential unit, Mr Augustine Tan, said the weekend response had been very good and that 20 more units are being slated for release.

He expects to launch a total of 100 to 200 units this year. About 70 per cent of buyers were Singapore citizens while the rest were permanent residents and foreigners, he added.

Although the luxury segment has not moved as much as the mass market, Mr Tan expects demand to pick up this year with prices increasing by about 5 per cent to 10 per cent.

City Developments is having a media preview of the 228-unit Residences at W in Sentosa Cove today. Industry sources say that it could be priced for about $2,500 psf to $3,000 psf. Developer TID will release the 65-unit freehold development Nathan Suites on Nathan Road, in the prime District 10, at the end of the month at an average price of $2,100 psf.

The 39-storey 76 Shenton downtown condo developed by Hong Leong Holdings also previews today. Prices range from just below $1,700 psf to $2,500 psf.

However, Chesterton Suntec International's research and consultancy director Colin Tan said the luxury end is still struggling to reach its peak, with prices about 20 per cent lower than in 2007.

'(Developers) might have thought the optimism in the mass market would spread to the luxury end, but that has not been the case. They know that good times won't last forever so they might just be trying to get what they can now,' he said. He also noted that the slew of luxury projects being launched might not necessarily mean sustainable recovery.

Rather, it could be a sign of developers getting nervous since the market share for high-end residences is limited. They might just be jostling to get their slice of the pie, he added.

Sat, Mar 27, 2010
The Straits Times
By Esther Teo

Hear from both sides on 'Property Market Bubbles'

Private Sector

Bubbles can be 'good for property market'

CONTRARY to what some believe, bubbles can be good for the property market, said the executive director of Hong Kong's Cheung Kong (Holdings).

Mr Justin Chiu told reporters yesterday at the showflat of his company's latest project here that he likes property bubbles because they fuel sales volumes and price rises.

Mr Chiu - who was moved to dress up as James Bond at launch parties in 2004 to stimulate interest - believes that what he calls optimum sentiment can buoy prices by up to 30 to 40 per cent. Without it, prices can fall by 50 per cent.

'I like bubbles. It's my religion. In a property market or any market, if there is some bubble, people will be more enticed to go into the market.'

'If it's a flat market like in 2003 (when Sars hit), even though I give you a discount and I dress up like James Bond...I sell fewer than 10 units.'

Mr Chiu, who stressed that property investment was a long-term game subject to short-term fluctuations, said people would not invest in property unless there was confidence. 'If no one is buying, prices will fall...That's why I said I like bubbles. Bubbles mean everyone is coming in.'

At Cheung Kong's latest project, The Vision, sales are reported to be brisk despite relatively high prices. Buyers have bought 210 units of the 99-year leasehold condo in West Coast Crescent, attracted by early-bird incentives discounting quoted prices by 2 per cent to 3 per cent.

The official launch is to be held on Friday, but per square foot (psf) prices for the apartments have already set a net high benchmark for the West Coast area.

The 281 apartments were mostly priced around $1,000 psf to $1,200 psf. All except one of the 14 strata terrace houses - costing $3 million to $3.2 million apiece - have been snapped up.

Mr Chiu, who is nearly 60, says the prices are reasonable given the project's location and quality finishings. 'If the price is not reasonable, we would not be selling over 200 units in two weeks.'

Cheung Kong's next project will be a site in Upper Thomson Road, which it won the tender for last November with a price of about $533 psf per plot ratio. Mr Chiu said it is likely to attract mainly locals and Chinese nationals.

He said Cheung Kong was looking at a few pieces of residential land. And together with Hongkong Land and Keppel Land - its partners for the Marina Bay Financial Centre (MBFC) project - Cheung Kong is also looking at buying offices.

More details will be revealed at the topping-out ceremony of Tower Two of MBFC next month.

Mr Chiu noted that the Singapore property market is now enjoying boom conditions, and government measures will not alter that, though there may be other risk factors such as wars. He said the key lies in the message given out with the measures, instead of the effectiveness of the measures.

'To me, government measures are not important at all unless they are very drastic...Government is only a small factor of the free market forces. Unless it takes very strong measures...I don't think it can alter the trend, (but) it can slow down (the market). I don't think any Asian government is prepared to wreck the market.'

Fri, Mar 26, 2010
The Straits Times

By Joyce Teo

Singapore Government

S'pore Govt defends property measures

THE Government has come out strongly against suggestions by the president of the Real Estate Developers' Association of Singapore (Redas), Mr Simon Cheong, that the Government should bear some of the blame for the limited land supply and high private-property prices here.

Ensuring adequate supply and providing timely real-estate information to the public are part of the Government's role in maintaining a stable property market, said a Ministry of National Development (MND) statement yesterday.

'When necessary, the Government will also introduce measures to dampen market exuberance and prevent prices from running ahead of economic fundamentals,' MND added.

Mr Cheong had questioned the need for official intervention in cooling private-home prices at Wednesday's launch of a new private-home price index.

He cited two recent government land-sale tenders to highlight 'the dilemma' that developers face when bidding for such sites.

A bid for a Tampines site was mrejected in June 2008 but the tender was awarded this month at $421 per square foot per plot ratio (psf ppr), or 3.6 times higher that the original bid.

Similarly, a Ten Mile Junction mixed-use site with a failed bid in April 2008 went for $437 psf ppr, or 2.7 times higher than the original bid, last month.

While the higher bid prices generated more revenue for state coffers, they also worsened the supply-demand mismatch, said Mr Cheong.

'Had the (tenders for the) two sites (along with other tenders) been awarded back then at market prices, the residential market's current demand-supply mismatch may have been more smoothened and price increases for such mass-market projects more muted overall,' he added.

Disagreeing totally, MND said it was arguable that awarding the two sites at 2008 bid prices would have moderated property prices or given bidders a higher profit margin.

The estimated number of units offered by both sites ' 800 ' is small, compared to the supply of 60,476 private-home units in the pipeline as of last quarter, of which about 34,000 are still unsold.

Said MND: 'A reserve price is necessary, to ensure the Government obtains a fair market price for a site. It serves only as a guide.

'In the past, the Government has awarded sale sites even below the reserve price. For the two sites cited by Mr Cheong, the Government was not convinced that the bids represented fair market value rather than opportunistic bids, as there were very few bids for the sites and they were exceptionally low.'

The stand-off stemmed from both parties representing different interests, said Mr Donald Han, managing director of Cushman & Wakefield.

He told my paper: 'As a stakeholder, the Government is looking at things from a wider perspective, and does not want to see irrational price behaviour (with extremely high or low fluctuations).

'But developers are into profit-making, not running charitable organisations. So there is no right or wrong here.'

Mr Cheong may also have been reacting to the spate of measures the Government introduced to cool the private-property market while flat prices surged over the last few quarters, Mr Han added.

'HDB-flat prices have risen 30 per cent and cash-over-valuation has increased about 50 per cent over the last two to three years, but not much intervention has happened.

'Such price climbs have a knock-on effect, as many private- home buyers are HDB upgraders who push rates upwards in the mid-end segment,' he said.

Property bubbles form when different factors like upgrading, a surge in property investing and other factors come into play, said Knight Frank chairman Tan Tiong Cheng.

'Ultimately, everyone wants a steady property market rather than a volatile one,' Mr Tan said.

Fri, Mar 26, 2010
my paper

By Koh Hui Theng

S'pore sees third consecutive month of record visitor arrivals in Feb

SINGAPORE: Visitor arrivals to Singapore grew by 24.2 per cent year-on-year last month to reach 857,000 visitors. This is the highest ever recorded for the month of February.

The Singapore Tourism Board (STB) said this is the third consecutive month of record visitor arrivals.

Visitors from China grew by 78.7 per cent, while visitors from Malaysia and Taiwan grew by 50 per cent and 39.2 per cent, respectively. These countries registered the highest growth out of the top 15 markets.

STB said this could largely be attributed to the Lunar New Year holiday. It said 13 out of the top 15 markets also registered positive year-on-year growth in February this year, reflecting the general improvement in travel sentiment to Singapore.

There were also improvements in hotel room revenue and average occupancy rate. But the average room rate declined marginally by 1.5 per cent over February 2009, to reach an estimate of S$201.

- CNA/sc
26 March 2010

Singapore offers best living environment for Asian expats: survey

SINGAPORE: Singapore continues to offer the best living environment for Asian expatriates. This is according to the latest Location Ratings for expatriate living conditions published by ECA International.

This is the 11th year in a row that Singapore has held pole position.

ECA International’s Location Ratings system is used to assist international HR departments to establish expatriate allowances which compensate staff for the difficulties of adapting to living in their assignment location.

The ratings are based on an analysis of living standards for more than 400 locations globally. Factors such as climate, health services, housing and utilities, and infrastructure are taken into account.

Regional director (Asia) of ECA International, Lee Quane, said: "Singapore’s high quality infrastructure and health facilities, combined with low health risks, air pollution, crime rates and a cosmopolitan population help make the city an easy place for Asian expats to live in."

The Japanese cities of Kobe, Yokohama and Tokyo, along with Hong Kong, are the other Asian locations that are ranked top 15.



Channel NewsAsia - Wednesday, March 24

Are prices of ECs rising?

In the last three months, there were 156 EC sale transactions across the island. Here are the prices four popular ECs fetched.
Click on thumbnail to view






The idea of ECs was mooted by then Prime Minister Goh Chok Tong in 1995 as a means to shorten the queue for HDB executive flats and to meet Singaporeans' demand for affordable, private property.

Aimed at Singaporeans who could afford more than an HDB flat but might find private property out of their reach, EC homes are targeted at couples between ineligibility for new Housing Board (HDB) flats because their combined monthly income exceeds the $8,000 cap but who may find private property too expensive.

The gross monthly household income of buyers of new EC units cannot exceed $10,000.
Earlier in the week, National Development Minister Mah Bow Tan said more ECs will be built this year and that they will make up about 10 per cent of the approximately 12,000 flats to be built this year.

The most recent one launched was La Casa in Woodlands in 2005, which has 444 units and was completed in 2008.

He added that the EC is 'well-designed, has good location, it is something that will have all the amenities and, at the same time, you can enjoy the grant... That is why we will be putting more ECs on the market'.

He is referring to a $30,000 housing grant that first-time EC buyers can apply for.
In the past three weeks, two new EC sites released by HDB were awarded to tenders with higher-than-expected bids.

The Sengkang EC site attracted a top bid of $315 per sq ft (psf) of gross floor area, while the Yishun EC site drew a top bid of $281 psf of gross floor area.
Some 520 apartments could be built on the Sengkang site, while the Yishun site could yield another 385 units.

According to a report in last week's The Sunday Times, analysts estimated that at the prices of those winning bids, the developers will have to sell the units in Sengkang for $650 to $700 psf and those in Yishun for $600 to $650 psf.
ECs are developed and sold by private developers with designs that are comparable to private condominiums.

EC apartments come with finishes such as marble and parquet floors, and have condo facilities such as a swimming pool, gym, tennis courts, barbecue pits and a clubhouse.
To date, 23 ECs have been built in Singapore, in the heartlands such as Pasir Ris, Jurong East, Woodlands and Punggol.

The first EC which was completed in 1999 is Eastvale, a 312-unit project in Pasir Ris Drive 3.
ECs are 99-year leasehold properties that have initial sale restrictions similar to those for public housing.

Wed, Mar 24, 2010
The Straits Times
By Tay Suan Chiang

Shenton Way project draws buyers early

Agents collecting cheques even before next week's preview.

BUYERS are said to be already showing interest in a condominium project in the Central Business District, although the preview will not be until next Thursday.

Property agents have apparently collected cheques from buyers for the 99-year leasehold development in Shenton Way, according to sources.

Pre-marketing is common these days, with agents busy drumming up interest before the preview, so some buyers try to get in early.

'On the ground, there seems to be a lot of interest, but the real test will come next week when it is previewed,' said one agent.

A property expert added: 'New launches are hot today, but the older condos are forgotten.'

The 39-storey downtown condominium - called 76 Shenton - is being developed by Hong Leong Holdings. It is at 76 Shenton Way in Tanjong Pagar on the site that used to house the Ong Building, next to Lippo Centre.

Prices range from just below $1,700 per sq ft (psf) to $2,500 psf, with units on the 23rd to 27th floors being quoted at $1,900 psf to $2,200 psf.

It will have 202 units - all below 1,000 sq ft - and seven shops.

'Smallish units are still in play and attracting strong buying support,' said Mr Michael Ng, managing director of Savills Singapore, linked to one of the marketing agents, Huttons.

Knight Frank is the other marketing agent.

'The bite-sized units are very palatable... City living is also finally taking off now that the Marina Bay Sands integrated resort will open soon.'

The project will have 134 one-bedders ranging in size from 592 sq ft to 624 sq ft and 68 two-bedroom units of 969 sq ft to 980 sq ft.

The Residences at W Singapore, being developed by City Developments in Sentosa Cove, will also be released for sale next week, as will Ho Bee's Sentosa Cove project, Seascape.

Hong Leong is also in final preparations to launch the 65-unit Nathan Suites in the Bishopsgate area, said its spokesman.

Talk is that the freehold Nathan Suites - located next to Regency Park - will sell for around $2,000 psf.

Apart from these high-end projects, developers are also preparing to release mid-range residences.

These include Frasers Centre-point's 393-unit project on the old Flamingo Valley site in Siglap and Far East Organization's 104-unit freehold project, The Sound, in Telok Kurau.

The spate of launches comes amid a buoyant market, with sentiment especially high for new releases.

Developers sold 2,676 new private homes in the first two months of the year, more than the 2,552 homes sold in the first quarter of last year.

Cheung Kong (Holdings) sold at least 160 units of The Vision in West Coast Crescent recently for a whopping $1,000 psf to $1,200 psf after a few rounds of marketing.

Sun, Mar 21, 2010
The Straits Times
By Joyce Teo

Property market: When is hot too hot?

Keeping people guessing when Government will step in may be best cooling measure of all.

PROPERTY developers may have heaved a sigh of relief on March 8 when the Government signalled there would be no more measures to cool the housing market - 'for now'.

But any comfort they took from that would have been cut short when National Development Minister Mah Bow Tan added what has become his signature catch phrase: 'We will monitor the market closely.'

He told Parliament: 'If there are signs that the market will overheat again, we are ready to introduce additional measures to stabilise the market.'

The words in themselves are not new. The Government has often assured home buyers that it will keep a close eye on the market and go in if necessary.

The problem is that it is now unclear what the Government considers an 'overheated' market - and when it will decide to intervene.

After all, when it announced measures to cool the private property market last month, the move came as a shock to property developers and home sellers.

Cooling measures had been introduced just five months earlier in September, when the Government removed the Interest Absorption Scheme and rolled out a huge supply of land.

More importantly, the property market last month seemed nowhere near the feverish heights of 2007 or even last year.

Sales of new homes were only just starting to recover after the September measures, while prices were rising at a slower pace than before.

So, why did the Government decide to cool the market last month?

Traditionally, there are three triggers for intervention: property speculation, prices and sales.

The key catalyst is usually speculation, but it was apparently not the main reason last month. The Government acknowledged that the overall level of speculation in the market was lower than at the height of the property boom.

This was backed up by an analysis by DTZ Debenham Tie Leung, which found that sub-sales - the main measure of speculation - fell to a three-year low last year. Sub-sales are when people buy new apartments and resell them quickly even before they are built.

But perhaps the Government could have started measuring speculation in another way: The number of apartments bought and then resold within a year, whether or not they have been built.

Still, sceptics noted that even if these transactions had risen, that may not have been evidence of real speculation. Private home prices surged by 24 per cent in the second half of last year, likely persuading even genuine home owners to cash in for a quick profit.

So, the Government was more likely to have intervened based on the second and third factors: A jump in prices and sales.

Indeed, it said in its statement that private home prices, which rose 7 per cent in the fourth quarter despite the cooling measures, had rebounded faster from its trough than in previous slumps.

But this in itself does not mean that the price rally is unfounded or unsustainable. The entire economy recovered faster than expected, partly because not many jobs were lost in last year's recession.

This helped to explain the quick property rebound: As most home owners kept their jobs, fire sales were rare.

At the same time, the economic uncertainty brought the booming market to a standstill. This prompted home seekers to rush in - many of them genuine buyers who had been priced out of the 2007 boom - and propped up home prices.

The Government also cited a sharp spike in new home sales in January as a reason for its measures last month.

But while sales tripled in January from the month before, this was only the first rise since July last year, and came on the heels of three months of slow sales - hardly a sign of excessive exuberance.

All this adds up to questions about whether the Government has fundamentally changed its approach of market interference.

In the past, the Government has preferred to stay out of the market as much as possible, waiting until a bubble has definitively built before going in to burst it, often with plenty of advance warning.

Even when it intervened 'pre-emptively' in September last year, it came after seven consecutive months in which developers had sold more than 1,000 new units each month.

But now, the Government seems to be signalling it will take a more active approach and intervene at the smallest - and earliest - sign that froth is beginning to build up.

And it will watch not just activity in the property market itself, but also broader economic trends - rapid growth, for instance, or low interest rates - that could spur on speculators and build a bubble.

It may have been no coincidence that the Ministry of National Development released its cooling measures on the same day the Ministry of Trade and Industry raised its 2010 growth forecast for the Singapore economy and warned of asset price bubbles in the region.

While it would be too extreme for property players to now nervously eye economic growth as a harbinger of cooling measures, it certainly seems many more factors than showroom crowds must be taken into consideration these days.

Then again, it may not matter what the Government actually takes into account when determining a bubble - only that these factors are kept a secret.

That way, a certain level of uncertainty will be introduced into the market - a clever and more permanent way to temper speculation.

Of course, there is also another possible reason the Government seems to be coming down insistently on private property: The fact that opposition politicians have made housing an election issue.

On March 5, the Government introduced cooling measures in the HDB market as well, making it clear it wants home prices to ease or, at least, stop rising.

Whether these measures will work remains to be seen.

But DBS property analyst Adrian Chua sees it this way: If the measures work, prices fall, and if they do not, the Government may intervene until they do.

Or, then again, it may not.

The fact is, no one knows - which is ultimately the most effective cooling measure of all.

Thu, Mar 18, 2010
The Straits Times
By Fiona Chan

Private home sales up 130%

DOWNTURN? What downturn?

Private home transactions - for both new and resale homes - jumped by more than 130 per cent last year, despite the downturn. Singaporeans were the main drivers of the surge: There was an overall rise of 144 per cent in private property transactions by them last year - 23,516 compared with 9,649 in 2008.

In the non-landed segment, Singaporean purchases rose almost 159 per cent. The rise in landed property purchases was nearly 83 per cent.

But comparatively lower prices here as a result of the credit crunch, the influx of expatriates and the attractiveness of Singapore property also led to more purchases by foreigners.

The number of purchases by foreigners, including permanent residents (PRs), rose 114 per cent overall last year - 6,798 compared to 3,176 in 2008. The bulk of the increase was in the non-landed segment, which rose from 3,036 purchases in 2008 to 6,610 last year - a jump of 118 per cent.

Landed properties showed a year-on-year rise of 34 per cent.

In terms of overall private property transactions, Singaporeans accounted for 76 per cent of all purchases. Foreigners and PRs made up about 22 per cent, with the rest going to companies and others, according to figures from the Urban Redevelopment Authority and DTZ Research.

Checks by The Straits Times showed that among the foreigners, Malaysians, Indonesians, and Chinese and Indian nationals were the most active in the property market. In particular, the proportion of Chinese and Indian nationals has shown a steep hike.

In 1999, they made up 6.6 per cent of total transactions by foreigners and PRs. That proportion grew to 27.3 per cent last year.

Experts said the rising number of purchases by foreigners could also be due to home prices here being more attractive than in cities like Hong Kong and Tokyo.

Ms Christine Sun, senior manager of research and consultancy at Savills Singapore, said: 'The opening of the integrated resort and the strength, resilience and stability of Singapore's economy during the recent downturn could also be plus points.'

She added that the boom came despite a poor economy. 'The market sentiment in the earlier part of 2009 was rather bullish. Many locals were buying due to pent-up demand, and PRs and foreigners could have ridden on the positive market sentiment and bought in as well.'

Mr Jeffrey Hong, executive director of HSR Property Group, said another reason for the rise in transactions was simply that there are more foreigners here.

Latest figures from the Department of Statistics showed there were 533,200 PRs and 1.25 million foreigners in Singapore as of last year, up from 449,200 PRs and one million foreigners in 2007.

Another reason foreigners are buying more homes is that to many, it makes more sense than renting.

Australian Justin Kwan, 26, a doctor who has lived here for more than a year, bought a Newton One condo unit last December. He did not want to go on paying $3,000 in rent, and said property prices were affordable.

By Melissa Sim and Melissa Kok
Sat, Mar 20, 2010
The Straits Times

Private property launches: they're still... HOT, HOT, HOT

Buyers pack showflats for mass market and prime projects.

SALES of private property kept sizzling over the weekend as buyers, undeterred by the rainy weather and recent government policies to cool the market, packed showflats.

Demand was strong for mass market and prime projects, with buyers especially keen on The Laurels, an upmarket 229-unit project in Cairnhill Road.

Developer Sing Holdings has sold 135 of the 179 units so far, with around 40 - comprising mostly two-, three- and four-bedders - going over the weekend and two more taken up yesterday.

More than 90 units had already been sold at private previews for business associates and former Hillcourt Apartments owners, where the development now sits.

Prices at the project ranged from $2,800 to $3,200 per sq foot (psf).

All four penthouses have also been bought, for between $8 million and $10 million each, and the 45 one-bedroom units are also gone, a DMG & Partners report said.

'We had a good mix of buyers with strong take-up rates across the different unit sizes. Mostly two- and three-bedroom units are left but we have no plans to release the remaining 50 units yet,' the spokesman said.

DMG & Partners property analyst Brandon Lee said turnout for The Laurels preview was healthy, with 20 to 40 people in the showflat at any one point.

Locals made up a good proportion of the buyers, although there were some Indonesians as well, the Sing Holdings spokesman said.

Mr Lee expects 30 to 50 units to be retained for future launches so as to ride on continued rising prices within the high-end segment.

The Vision at West Coast - marketed as a high-end project in a suburban location - was also popular.

As of yesterday, 160 out of the 295 units in the Cheung Kong Holdings development had been sold, including the 100 that went during the initial preview.

This is in spite of record prices - from $1,000 to $1,200 psf - for a mass market project.

The Vision, a 99-year leasehold condominium located across the road from West Coast Park, has 281 apartments and 14 strata terrace units. It is next to Blue Horizon, where units in the resale market have gone for $764 to $841 psf this year.

UOB Kay Hian analyst Vikrant Pandey said the strong demand for The Vision served to reinforce positive views about the sustainability of the property market's recovery, with turnout strong despite Sunday's rain.

He expects demand to remain strong for other upcoming launches.

'We believe the turnaround in the property segment is well supported by favourable demand-supply dynamics, high liquidity and a low interest rate environment,' Mr Pandey added.

Tiong Aik's Coralis near Marine Parade has also seen strong sales, with more than 50 out of its 127 units taken up at its weekend preview in Raffles Hotel. Prices were between $1,350 and $1,550 psf. It is expected to be launched this weekend.

Coralis is a freehold condominium featuring one-bedders as small as 495 sq ft and penthouses of up to 3,089 sq ft.

Mr Dennis Yong, head of special projects at HSR International Realtors - a co-marketing agent of the project - said strong demand was seen mostly from local people with the 'perspective of home ownership'. Investors made up only about 20 per cent of buyers, he said.

Mr Yong expects continued demand in the next two to four weeks as there is still genuine demand from home buyers.

But he tips prices to continue increasing, given developers' depleting landbanks and that new site tenders are attracting high bids.

'Developers are not in a rush to sell. They can still push up their prices to maximise their value and to increase the average price of each unit,' he said.

'They are not sure how high to price their units, (so) every four to five units sold, they adjust their prices again.'

City Developments has said it plans to launch the 228-unit Residences at W Singapore Sentosa Cove this month while it hopes to release a 429-unit project in Chestnut Avenue next month. A spokesman said that while it has not launched any new projects as yet, there has been buying interest.

Local developer Hiap Hoe Group will preview its 61-unit Skyline 360??? at St Thomas Walk and its 48-unit Treasure on Balmoral - a luxury development costing at least $4 million per unit - at Raffles Hotel this weekend.

CB Richard Ellis executive director of residential services Joseph Tan said he has seen 'decent sales' even for some of the ongoing projects such as Centennia Suites in Kim Seng Road over the past weekend.

'Sales are still okay even for the older launches...All (projects) are moving, some are faster, some are slower but even if sales are slower, it could be the marketing strategy of the developer. Prices might still go up and with a developer having a depleting landbank, it is not in its interest to sell fast,' he said.

By Esther Teo
Thu, Mar 18, 2010
The Straits Times

Prices of new luxury homes here up 20%

Launch prices of new luxury residential projects in Singapore rose about 20-25 per cent last year and could appreciate a further 10-15 per cent this year, says CB Richard Ellis.

Rentals of completed luxury homes, which slid 10.5 per cent in 2009, could increase 5-10 per cent this year, according to the property consulting group.

Already, in the first two months of this year, prices have been climbing steadily, CBRE said, citing sales of 88 units at Urban Suites at $2,500 psf on average and about 35 units at The Laurels at $2,500-2,900 psf, although the latter features smaller units.

Both projects are in the Cairnhill area.

Other luxury projects that will be marketed in the first half of 2010 include Ardmore 3, Nassim 8 and those on the sites of Grangeford and Parisian, CBRE said.

The Singapore residential property launch meanwhile continues to teem with activity in various market segments.

At Meyer Road, Hong Leong Holdings is releasing this week close to 60 upper-floor units at Aalto, a 27-storey freehold condo with a total of 196 units.
Prices will start from $2,000 psf.

“Absolute pricing ranges from $3.1 million for a 1,442 sq ft three-bedder on the 18th floor to $5.3 million for a 24th level four-bedroom apartment of 1,959 sq ft,” the company said in a statement yesterday.

A handful of lower-floor units are also available, from $1,500 psf.

The project was first launched in early 2008 and as at end-January this year, 118 units had been sold.

Aalto comprises three and four bedroom apartments and penthouses. It is expected to receive Temporary Occupation Permit in September this year.

Hiap Hoe is also doing an official launch of its 200-unit Waterscape At Cavenagh this week. So far, it has sold 96 units.

The average selling price is about $1,880 psf. The seven-storey freehold condo comprises one-to-four-bedroom apartments, and penthouses.

Later this month, Hong Leong Group could release a 202-unit project on the former Ong Building site at 76 Shenton Way.

TID Pte Ltd – a joint venture between Hong Leong and Mitsui Fudosan – is also expected to preview in a few weeks Nathan Suites, a 24-storey project at Nathan Road, opposite the Malaysian High Commission.

The project’s 65 units comprise two, three and four-bedroom apartments as well as penthouses.

CBRE, in its release on the luxury residential market, said that recent sales activities point to the start of a revival in this market segment.

“It is likely that this interest in luxury homes is sustainable given the low interest rates and improving economic environment,” the firm’s executive director, Li Hiaw Ho, said.

However, he predicts that “we are unlikely to see runaway prices the way we did in 2007 as homebuyers will be less impulsive and more discerning following the latest government measures” to cool the market.

Back then, average launch prices of new luxe projects jumped from $1,800-2,600 psf in 2006 to $2,000-4,000 psf in 2007.

Overseas buyers returned at upmarket property launches in Singapore in Q4, as seen at Marina Bay Suites, Urban Suites, and Kasara the Lake, a plush villa development at Sentosa Cove.

This bodes well for the market segment.

Elsewhere in Asia, prices of luxury homes in the secondary market edged up in Beijing, Shanghai, Guangzhou and Hong Kong by 6-10 per cent in Q4 2009 over the preceding quarter while remaining largely stable in other markets.

Singapore saw a 2.7 per cent quarter-on-quarter gain in average prime residential price in the secondary market to $2,260 psf in the fourth quarter.

Despite strong sales, leasing demand for luxury homes remained rather fragile in some cities, with Beijing, Guangzhou, KL and Ho Chi Minh City posting a modest rental drop in Q4.

Leasing markets in Hong Kong, Shanghai and Bangkok began to gradually recover, with rents for luxury homes rising by increments ranging from one per cent in Bangkok to 6 per cent in Hong Kong.

Looking ahead, CBRE forecasts that end-users and investors may adopt a more cautious approach in the next couple of months following the introduction of measures that tighten lending for property in certain markets.

by The Business Times 20 March 2010
This article was first published in The Business Times.

All units in phase1 of The Vision sold out

Buyers pay $1,332 psf for two penthouses.

Hong Kong developer Cheung Kong has set record selling prices for residential projects in the West Coast area.

It managed to sell all 100 units released in the first phase of sale for the 99-year-leasehold The Vision yesterday. Of these, two penthouses went for $3.6 million each, which works out to around $1,332 per square foot (psf).

Buyers paid around $1,000-$1,200 psf for two, three and four-bedroom units, which start from 818 sq ft in size. Cheung Kong also sold several strata terrace units, and the highest price fetched was $3.2 million.

According to the developer's sales manager Cannas Ho, upgraders made up more than 60 per cent of the buyers, and investors accounted for the remainder.

The Vision will have 281 apartments and 14 strata terrace units altogether. In view of the strong demand, the developer will release another 20 units of two to four-bedders for sale this weekend. Cheung Kong had planned to start the second phase of sale by Q4 this year. Whether it brings the release forward will depend on market response to the project, Ms Ho said.

Take-up so far surprised some market watchers, given that The Vision's asking prices are higher than those of other developments nearby.

One of the newer launches in the area, City Developments' Hundred Trees, achieved prices of above $1,100 psf in recent months. But those transactions involved mainly smaller units measuring 484 sq ft, and the project has a 956-year lease.

The robust take-up of units at The Vision 'shows the strong underlying demand for mass-market homes', said Colliers International research and advisory director Tay Huey Ying. The prices achieved could raise the value of homes in the vicinity, and provide a guide for future launches, she added.

Cheung Kong's Ms Ho attributed The Vision's attractiveness to 'good location and first-class amenities'. The site is across the road from West Coast Park and the sea.

Another developer felt that prices at The Vision are not that staggering, considering the attributes of the site, and that West Coast is home to several private housing estates. The market should not see the prices as signs of a bubble forming, he said.

Nevertheless, observers will be keeping watch on prices of upcoming launches nearby. Far East Organization's Horizon Residences, a freehold 72-unit project in the Pasir Panjang area, could be previewed in the next few weeks.

Elsewhere, the buzz is starting for property agents promoting 76 Shenton Way. Some will be presenting information on the 99-year-leasehold 202-unit project to potential buyers today. Asking prices are said to range from $1,600 psf to above $2,000 psf, depending on the level of the units.

Agents are also gathering interest for Fragrance Group's 161-unit Parc Elegance in Telok Kurau and Novelty Group's Primo Residences near Kovan MRT station.
Mon, Mar 15, 2010
The Business Times
By Emilyn Yap

Strong new home sales in Feb despite CNY, cooling measures

Last month's sales serve to underline that the property resurgence is more resilient than some had thought. -ST

Property buyers showed few signs of easing off last month and snapped up 1,196 new private homes - more than industry experts had expected for a month many thought would be quieter.
The robust figures follow from a bumper January, when 1,480 private units were sold - a number that trumped the miserly 481 shifted in December, and helped prompt government measures to pre-empt a property bubble.

Sales in January and February hit 2,676 units, already well up on the 2,596 sold in the first three months of last year, with March numbers yet to come.

Joyce Teo
Tue, Mar 16, 2010
The Straits Times

Expect to pay more for exec condos

Market watchers cite strong bids for new sites and pent-up demand.

Executive condominium (EC) prices look set to rise further with the close of two EC tenders at higher-than-expected bids in the past two weeks.

The Sengkang EC site attracted a top bid of $315 per sq ft (psf) of gross floor area, while the Yishun EC site drew a top bid of $281 psf of gross floor area.

Analysts estimated that the winning bidders will have to sell the units at Sengkang for $650 to $700 psf and those in Yishun for $600 to $650 psf.

CBRE Research said the median price of new 99-year leasehold private condo units in similar locations as ECs was just $663 psf as of last month.

However, the latest 99-year condo The Estuary in Yishun sold at some $750 to $800 psf, with more than 500 units snapped up since early this month. It is therefore reasonable to expect that new EC projects may be launched at more than $600 psf, it said.

In the resale market, EC unit prices have risen in line with the market, closing the gap between resale prices of EC and private condo units.

As of last month, resale EC unit prices have reached $557 psf, up 75 per cent from the market bottom in the third quarter of 2006.

The price gap between resale private condo units and resale EC units has narrowed to 11 per cent, from 14 per cent late last year, according to CBRE Research.

This could have a bearing on the gap between new EC units and new private condo units - the gap could become smaller than the historical one of 25 per cent to 35 per cent, said its executive director Li Hiaw Ho.

Said PropNex chief executive Mohamed Ismail: 'There will still be a gap of around 25 per cent. It is still there, but it may be slightly smaller because land cost has become more competitive.'

This price gap reflects the constraints attached to ECs such as qualifying conditions and the restriction on resale only after the minimum occupation period of five years, experts said.

ECs come with condo facilities but have initial sale restrictions similar to those for public housing. They convert to a private property only after a decade.

They were introduced in 1995 to bridge the gap between public housing and private apartments, aimed at Singaporeans who could afford more than an HDB flat but might find private property out of their reach.

Buyers of new EC units have to meet a gross monthly household income ceiling criterion of $10,000 a month, slightly above the $8,000 income ceiling for a new HDB flat.

Despite the expected higher EC prices, there is likely to be pent-up demand for the new ECs, Mr Ismail and Ngee Ann Polytechnic lecturer Nicholas Mak predicted.

Firstly, there have not been any EC launches since 2005, when La Casa in Woodlands was marketed, said Mr Mak.

Also, prices of 99-year leasehold condo units as well as HDB resale flats have gone up, he pointed out.

'Those who earn more than $8,000 do not qualify for build-to-order or design, build and sell scheme HDB flats. They would have a greater motivation to apply for ECs,' said Mr Ismail.

Besides, the higher psf price may not translate to a huge lump sum. 'Given the two recent EC bids, the developers are likely to offer more smaller units, such that they can sell them at the right prices,' he said.

'Developers these days are offering more smaller units. Buyers will have a better lifestyle but they will have to compromise on space.'

Tue, Mar 16, 2010
The Straits Times
By Joyce Teo

Economists raise 2010 growth outlook for Singapore to 6.5%

Economists have upped their growth outlook for Singapore as the city-state's key industries continue to rebound from last year's recession, according to a central bank poll.

The Monetary Authority of Singapore's survey of 20 private-sector economists showed they expected average growth of 6.5 per cent this year, higher than the previous forecast of 5.5 per cent in December.

The economists also raised their outlook for the island-state's major industries including manufacturing, which is now predicted to expand an annual 9.7 per cent this year - higher than the previous forecast of 6.3 per cent.

Wholesale and retail trade is seen growing 8.4 per cent instead of 7.0 per cent while construction is tipped to expand 8.9 per cent, from a previous projection of 7.1 per cent.

The government in February upgraded its 2010 economic growth outlook to 4.5-6.5 per cent from 3.0-5.0 per cent. Singapore's economy contracted 2.0 per cent last year due to the global economic downturn. But it has managed to pull out of recession and rebounded strongly.

Improving global trade and continued consumption by major Asian markets like China spurred a rapid recovery in the beginning of this year.

Song Seng Wun, regional economist at CIMB-GK Research, said: "We see a very strong start to the year for the manufacturing sector, led by the pharmaceuticals sector, as well as a firmer contribution from the tech sector itself. So, collectively it looks like we're off to a very strong start for the year, and for the first quarter. Indeed the first-half performance may lift the overall figures for the full year itself." Private-sector economists surveyed by the central bank said they expected GDP growth of 9.5 per cent for the first quarter.

Sector-wise, they said the long-term prospects for the financial services sector remain strong although it is expected to lag behind the others in the first quarter.

David Cohen, director of Asian economic forecasting at Action Economics, said: "Those numbers can fluctuate quarter on quarter, and as far as the financial services, the outlook is still bright in the long term. The fact that the stock market has bounced back nicely from a year ago should help support investment activity."

As for 2011, GDP growth estimates for Singapore came in at 5.5 percent. Experts said the lower expectation is the result of the inventory restocking cycle being over, and concerns over the pace of recovery in the more developed OECD economies.

- CNA/yb/ir

Condos hit the sweet spot, even without a tennis court

PAYING big money does not necessarily get you everything these days, at least when it comes to buying a private apartment.

New homes going for as much as $2,600 per square foot can offer designer furnishings and place you in a coveted district, but they may no longer come with large common spaces or even tennis courts traditionally associated with a private address.

In the core central region (CCR), home seekers would not find tennis courts in projects such as Marina Bay Suites, Sophia Residence and Illuminaire on Devonshire.

Further from town, buyers have paid as much as $1,345 psf at Alexis or $1,514 psf at Suites@Guillemard, where there is just a margin of space around the buildings, and swimming pools and gyms congregate on the rooftop. Tennis courts are also missing from the picture.

Nowadays, 'you don't really get developments with sprawling grounds, where there's openness', observes DTZ executive director Ong Choon Fah. 'Those are actually more difficult to come by.'

Many projects cannot offer large landscaped grounds or a full range of facilities simply because their sites are not big enough. A tennis court alone measures 78 ft by 36 ft, taking up 2,808 sq ft. According to EL Development managing director Lim Yew Soon, a developer could try to tuck a court just nicely into a smallish site, but it could become a 'disamenity' to residents living too close to the noise.

In fact, there are buyers who do not expect to see tennis courts for smaller projects within or near town, he adds. 'Even if they really see, they'll be asking if it will be too near their units.'

EL Development has three projects in CCR which do not have tennis courts - Illuminaire on Devonshire, Parc Centennial and Rhapsody on Mount Elizabeth - but they are sold out.

Many projects are still able to command high prices because of their location. This is especially so if owners intend to rent the apartments out.

The absence of a tennis court, for instance, may mean a longer search for a tenant but consultants say rents are unlikely to be dented much. 'That's about property investment. Location is everything,' says Savills residential director Phylicia Ang.


GuocoLand is banking on Sophia Residence's location near Dhoby Ghaut MRT station to attract buyers. The project does not have a tennis court, but home seekers' 'main buying criterion was to be in the city, to have easy MRT access to all parts of Singapore and also a property which offered attractive rental yield', it told BT. The development will be where Sophia Court used to be and the latter also did not have a tennis court.

Beyond site constraints, high land prices may be prompting developers to cut back on common spaces and certain facilities.

'With land costs so high, most developers want to maximise the saleable area,' says ERA Asia Pacific associate director Eugene Lim.

But that's not to say that all developers have free rein on the site design. The Urban Redevelopment Authority (URA) has rules on site coverage, which indicate how much space buildings can occupy.

For developments classified as flats/apartments and condominiums, site coverage cannot exceed 40 per cent. Mixed-use developments are the ones which are not subject to this rule.

Still, developers are careful to keep features which most residents cannot seem to do without, namely swimming pools and gyms. Faced with a smaller site, 'the priority is given to swimming pools', says DP Architects director Tai Lee Siang. But 'where possible, it is likely that developers will still want to incorporate tennis courts'.

As it becomes harder to find prime projects offering large ground spaces and complete facilities, existing developments with these features are likely to stand out. 'One of the reasons why Ardmore Park is so popular is because it has a beautiful landscaped garden, and the grounds are sprawling. You don't get many of these, these days,' says DTZ's Mrs Ong.

The Business Times, Mon, Feb 08, 2010

Resorts World @ Sentosa (RWS) to open Sunday

SINGAPORE: Genting Singapore said its Resorts World Sentosa casino in Singapore will have a soft opening on Sunday, February 14. Its Universal Studios theme park is still on schedule to open in the first quarter of this year.

In a statement filed with the Singapore Exchange, Genting said the rides at the theme park are still being fine—tuned.

The casino will admit its first public guests at the auspicious hour of 12.18pm, with a private ceremony.

A day of festivities at the integrated resort has been planned to mark the red—letter day, including the debut of its public attraction "Lake of Dreams", and evening previews at its Universal Studios theme park.

Tan Hee Teck, CEO of Resorts World Sentosa, said the resort is still fine—tuning the rides and shows in the theme park, which are still on schedule to open in the first quarter of 2010.

But a week—long preview of the theme park will be conducted to give Singaporeans a special and unique first—to—see walk—through opportunity. The theme park’s restaurants and shopping venues will be open for guests, although rides and shows will not be operational.

For sneak peek week, Universal Studios Singapore will open from 5pm to 9pm every night from February 14 to February 21. Admission will be by S$10 tickets, rebated by a same—value dining voucher. Sale of the tickets starts from 11:18am tomorrow.

Guests can visit the box office at the Universal Studios Singapore front gate to purchase tickets for another day, as there will be no same—day ticket sales available.

After the sneak peek week, Universal Studios Singapore will open on February 22 to employees of Resorts World Sentosa, Genting, and Universal Studios Singapore. This is followed by specially—invited families, charities and guests.

It expects to welcome its first public guests in early March.

— CNA/sc