Private home prices increased by 7.4 percent in Q4 : URA

The latest figures from Urban Redevelopment Authority (URA) show that private home prices increased by 7.4% in the last quarter of 2009. This compares with the 15.8% rise in the preceding quarter.Prices for non-landed properties increased by 7.2% in 4th Quarter 2009. This was markedly reduced from the 15.9% increase in the previous quarter.

In 4th Quarter 2009, prices of apartments and condominiums increased by 9.7% and 6.1% respectively. For the year 2009 as a whole, non-landed property prices rose by 0.5%.

A larger gain of 8.3% was recorded for the prices of landed properties in 4th Quarter 2009. This segment saw a 14.9% increase in the preceding quarter.

Prices of detached, semi-detached and terrace houses increased by 7.9%, 7.6% and 9.4% respectively in 4th Quarter 2009. The whole of year 2009 saw prices of landed properties gained by 7.7%.

URA added that “the prices of private residential properties are not uniform and vary from project to project.”

Burj Khalifa is world’s tallest at 828 metres

Burj Khalifa in Dubai, United Arab Emirates, had been unveiled as the world’s tallest building with an official height of 828 metres. The official ceremony drew over 400,000 people and was heralded with a show of fireworks, lasers and fountain displays.

Burj Khalifa is developed by Emaar Properties and is the world’s tallest building according to the three criteria of the Council on Tall Buildings and Urban Habitat: 'Height toArchitectural Top', 'Height To Highest Occupied Floor', and 'Height To Tip'.

The tower is 320 metres taller than the now former world’s tallest building since 2004 - Taiwan’s Taipei 101 (509.2m) and 376 metres taller than Malaysia’s Petronas Twin Towers (451.9m).

Burj Khalifa comprises luxury residences and offices, the world’s first Armani Hotel, and the world’s highest observation deck which is located on the 124th floor. It had been reported that around 90 per cent of the offices and apartments have been sold. The observation deck is open to the public on January 5 while the handover of offices and apartments starts in February. Giorgio Armani will officially open the Armani Hotel on March 18.

The Parisian at Angullia Park sold for $283m

The biggest private residential land sale in two years.
The freehold site has a site area of 49,113 sq. ft. It has a planning approval for a 36-storey development comprising 52 three and four bedroom units and two penthouses.

OUE bought The Parisian in a collective sale for $228.1 million in December 2006. It has paid the Development Charge and Differential Premium of about $23 million. The purchase price of $283 million equates to about $2,058 per square foot per plot ratio. The break even price is estimated to be $2,500 to $2,600 psf. Depending on the launch date, the selling price would be in the region of $3,500 psf.

Home buyers prefer ‘mickey mouse' flats

The project Suites@Guillemard recently put up a sale of apartments of different sizes, which included units covering 258 square feet and an area equivalent to 21/2 car park lots. Offered units were priced at $1,450 per square foot or $374,000.

These are the smallest private apartments in Singapore, which shelled out a 312 square feet unit at Kent Residences.

It seems that home buyers are seeking for more so-called 'shoebox' or 'mickey mouse' flats in the market. Such flats cover an area of below 500 square feet. The trend set forth in the latter part of the previous year.

Laguna Park owners to sell at cheaper price

Unit owners in Laguna Park, whose tender unsuccessfully closed last Friday, have now considered selling at a cheaper price, ranging from S$950 million to S$1 billion.

According to Credo, the marketing agent of the development, the residents are likely to obtain letter of advice about the situation within the next 2 or 3 days.

Before, a lot of property analysts commented that the initial S$1.2 billion reserve price of Laguna Park was on the higher side.

Meyer Place condominium up for collective sale

According to Cushman & Wakefield, the property consultants that are marketing the Meyer Place condominium located at the Meyer Road, the site should be sold for at least $65 million. Depending on the unit size, that would provide the 28 owners a sale price of $2.2 million–$3.3 million per unit.

The price works for $1,100 per square feet (psf) per plot ratio. It is based on a 2.1 maximum acceptable plot ratio. Director Christina Sim of Cushman & Wakefield, investment and capital market, said that if the homeowners are to individually sell the condominiums on the open market, these prices can translate to a premium of around 50 percent above the units’ value.

The fairly small freehold site located near the Katong Park, which covers a total land area of 28,167 square feet, also include a two-storey conservation building with four flats that must stay in any development of the land.

Singapore moves to curb property market speculation

SINGAPORE, Sept 14 (Reuters) - Singapore will release more
land for development and make it harder for home buyers to
defer payments, steps aimed at curbing speculation in the
housing market and that drove down property stocks on Monday.

With immediate effect, banks and developers will not be
allowed to offer loans on homes under construction where the
borrower need only put down as little as a 5 percent cash
downpayment and defer repayment of the principal until after
building is completed.

The government also said it will reinstate its 'confirmed
list' of land sales in the first half of 2010 and increase the
supply of land available to developers.

'Given the current market conditions, the government has
decided to adopt several measures to temper the exuberance in
the market and pre-empt any speculative bubble from forming,'
National Development Minister Mah Bow Tan said in Parliament.

Laguna Park en-bloc sale

EAST COAST condominium Laguna Park was put on en-bloc sale for $1.2 billion on Wednesday.

The condo, which made headlines in the past year for its spate of vandalism cases due to disputes in its en bloc sale process, reached the 80 per cent consent level last December.

Its marketing agent Credo Real Estate said the tender was put on hold until now 'as major developers have only recently returned to the land market with confidence.'
If it succeeds in finding a buyer, Laguna Park wil be the second billion-dollar en bloc deal in Singapore, after the 618- unit Farrer Court which was sold to a CapitaLand-led consortium for $1.3388 billion.

Like Farrer Court, Laguna Park is an ex-HUDC estate in Marine Parade and was privatised in 2007.

At the current price tag, owners of the apartment units will receive sale proceeds ranging from S$2.1 million to S$2.3 million, while the penthouses will gain between S$3.5 million and S$4.1 million.

It is also one of the few sites that come under the amended Land Titles (Strata) Act meant to tighten the en bloc sales process, which came into effect in October 2007.
Laguna Park has a land area of about 677,493 sq ft and a gross plot ratio of 2.8 under the current 2008 Master Plan, with a building height of up to 36 storeys, subject to relevant approval.

Credo's deputy managing director Tan Hong Boon estimates that the buyer would be able to build close to 1.9 million sq ft of gross floor area or some 1,500 apartments with an average size of about 1,200 sq ft.

At $1.2 billion, the land price for the condo works out to about $844 per sq ft per plot ratio.

Property scene not too frothy: CDL

PROPERTY tycoon Kwek Leng Beng believes the Government may try to cool the property market - if it gets too frothy - by resuming its regular land sales programme as a way to boost supply.

However, the City Developments (CDL) chairman also said yesterday that the current buying momentum can be sustained and should not be seen as over-exuberant."

AFP: Singapore property market booms despite recession

SINGAPORE — Despite Singapore's worst economic slump since independence, the residential property sector is in the midst of a new boom reminiscent of 2007, when the city-state was known as the world's hottest real estate market.

Greed and its twin brother fear are back in play as punters stake out condo launches days before sales open, with some offering blank cheques to pre-book flats, prompting the government to hint it may have to cool things down.

'Some of the practices and habits that you saw in the last property boom are beginning to come back, so I think we'll have to be careful,' said Minister for National Development Mah Bow Tan.

'A little bit of speculation is inevitable in every market, but when it becomes excessive, then it is something that we should try to avoid,' he said."

Tracking the Property Market

Some condo I monitor .....

The Waterside

This has the upside of having enbloc potential should the market return again.

Price / Area (Sqft) / Unit Price ($psf) / Date
2,300,000 / 2,174 / 1,058 / Jun-09
2,525,000 / 2,411 / 1,047 / Jun-09
2,500,000 / 2,411 / 1,037 / Jun-09
1,600,000 / 2,142 / 747 / Apr-09
1,560,000 / 2,142 / 728 / Mar-09
1,680,000 / 2,142 / 784 / Mar-09
1,725,000 / 2,174 / 793 / Feb-09
3,068,000 / 2,400 / 1,278 / Sep-08
2,180,000 / 2,142 / 1,018 / Jul-08

Looks like prices has indeed recovered since Q1 2009

Botanical Gardens Area:

Project / Price / Area (Sqft) / Unit Price ($psf) / Date
BOTANIC GARDENS MANSION / 1,790,000 / 1,755 / 1,020 / Jun-09
BOTANIC GARDENS MANSION / 1,550,000 / 1,755 / 883 / Mar-09
BOTANIC GARDENS MANSION / 2,380,000 / 1,755 / 1,356 / Sep-08

Project / Price / Area (Sqft) / Unit Price ($psf) / Date

BOTANIKA / 2,856,000 / 2,034 / 1,404 / Jun-09
BOTANIKA / 2,150,000 / 1,539 / 1,397 / Jun-09
BOTANIKA / 5,579,520 / 2,906 / 1,920 / Sep-08

Project / Price / Area (Sqft) / Unit Price ($psf) / Date
BOTANIC GARDENS VIEW / 2,580,000 / 1,755 / 1,470 / Sep-08

Not too many transactions done but does seem to show signs of increases since Q1 2009

Recent Property Launches

More than 1,000 thronged Wing Tai's Ascentia Sky showflats in Redhill when the 373-unit condo was launched yesterday. It has sold 85 per cent of the 120 units put up, at prices of around $1,300 psf.

Far East Organization, for instance, resumed sales of its Silversea condo in Amber Road and has sold 57 of the 80 units released since July 10. Prices range from $1,200 to $1,700 psf.

It has also sold 80 per cent of the 182 units released at Vista Residences in Thomson, with prices from $1,100 psf.

The current fizz is setting new price benchmarks in suburbia, with the upcoming Centro Residences, next to AMK Hub, tipped to cross the $1,000 psf mark.

Another condo, Optima in Tanah Merah, which will preview at month's end, will be sold at around $900 psf. Its developer, TID, said it has had more than 1,000 inquiries.

Signs of speculation in Singapore private property market

SINGAPORE: The government is seeing some signs of speculation in the Singapore property market, according to National Development Minister Mah Bow Tan.

Speaking on the sidelines of the topping out ceremony of the Marina Bay Financial Centre on Wednesday morning, Mr Mah said the government is monitoring the situation.

It is uncertain if the buying momentum seen in recent months can be sustained, he added.

"The forecast is still for negative growth this year. Although it's not as negative as it was in the beginning of the year, I think there is still uncertainty... But what is important really is for all of us, all the players in the market, to make sure that the market remains healthy," said Mr Mah.

According to latest data from the Urban Redevelopment Authority (URA), sales of uncompleted private homes reached a record high of 1,825 units in June as improving sentiment in the market spurred homebuyers to snap up more units.

Mr Mah assured that there is adequate supply of units in the market for now and the government is prepared to release more land for sale if necessary.

On the Marina Bay Financial Centre, Mr Mah noted that it has already attracted over S$20 billion of private real estate investments from both local and international investors. About 61 per cent of space in the centre has been pre-leased.

Mr Mah also reiterated the government's commitment to the project, saying another S$1 billion in infrastructure works will be invested over the next 10 to 15 years. The figure is on top of the S$7.5 billion already invested in Marina Bay.

Home sales still going strong

When private home sales unexpectedly jumped in February, in the thick of Singapore's worst-ever recession, pundits called it a false dawn and warned that the rally would not last.

But now, the market has sustained its rebound for five straight months and is expected to keep growing.

Figures released last Wednesday showed that last month's new home sales hit a record high of 1,825, while recent news reports indicate that this month's sales figures will still be strong.

All this has prompted previously sceptical analysts to turn more decidedly positive on the sector.
At least three research houses - UOB Kay Hian, DMG & Partners and DBS Vickers - are now overweight on Singapore property, which means they see property stocks as better valued compared with stocks in other sectors.

Why the change in sentiment? Recent data offers a whole host of reasons, according to the analysts.

One is that the worst of the economic crisis is over, and Singapore in particular looks to have turned the corner. Last Tuesday, the Government said the economy jumped 20.4 per cent between March and June to rise out of recession, pulling up market confidence and the full-year growth forecast along with it.

In the same quarter, developers sold 4,714 brand-new units - already more than the 4,370 they sold for the whole of last year.

The improvement in home sales is also spreading to more segments of the market, said UOB Kay Hian's property analyst Vikrant Pandey.

While the rally in private home sales started in entry-level homes - a result of pent-up demand from HDB upgraders and genuine owner-occupiers shut out of the last property boom - the positive sentiment has widened to include pricier units.

Sales of high-end and luxury homes have gained traction recently, with 'a steady increase noted in the number of transactions above $1,500 per sq ft since the beginning of this year', said Mr Pandey.

Last month, high-end sales were boosted by the 146 units sold in One Devonshire in Somerset, at a median price of $1,771 psf. Three units were also sold above the benchmark price of $3,000 psf: at The Orchard Residences, Nassim Park Residences and The Ritz-Carlton Residences.

Most importantly, the rebound is pushing property prices up in some projects - and buyers are still biting.

Despite prices increasing by 5.2 per cent on average last month, buyers seemed undeterred, said DMG analyst Brandon Lee.

'We attribute it to the buoyant HDB upgrader demand, pent-up demand, low interest rates and improved macro-economic landscape.'

More pent-up demand may still be on the way, from buyers who sold their previous units en bloc and have yet to buy another home, said DBS Vickers analysts Adrian Chua and Lock Mun Yee in a report published last week.

They also take heart from the fact that long-held fears of an impending surge of new units have failed to deflate the market.

'We believe we should not see a short-lived spike unless prices rise beyond economic fundamentals,' they added.

But not all analysts are so upbeat.

OCBC's Mr Foo Sze Ming has maintained a neutral rating on the property sector because he thinks that there will be no additional impetus for home sales to keep rising.

In fact, he said the number of unsold suburban homes rose last month for the first time in four months - evidence that the pent-up demand from HDB upgraders has been gradually met.
What is now helping to drive demand for new homes is sideline liquidity from investors who see a chance to get in on the action.

But he said it remains uncertain as to how long this can last. Unless wages start rising again or foreign funds start coming in to buy Singapore property - neither of which Mr Foo thinks is likely to happen soon - the recovery may well peter out.

Of the stocks that analysts are now bullish about, City Developments seems one of the most popular due to its relatively large exposure to the Singapore residential market.

UOB Kay Hian and DBS also like Ho Bee, which has both mid-end and high-end projects, and Allgreen, which has at least two mid-tier projects launch-ready.

Singapore Q2 property prices drop 5.9 percent

Singapore real estate prices fell in the April-June period for a fourth straight quarter amid the city-state's worst ever recession.

Private residential property prices fell 5.9 percent in the second quarter from the previous quarter after plunging 14 percent in the first quarter, the Urban Redevelopment Authority said Wednesday.

The property survey was carried out in the first 10 weeks of the quarter, and the authority said it plans to release more complete figures later this month.

Singapore's gross domestic product fell a seasonally adjusted, annualized 14.6 percent in the first quarter. The government expects the economy to shrink as much as 9 percent this year.

Property market warning

THE optimism in Singapore's property market is unsustainable, given an impending over-supply of new flats, weak rental demand and the fact that the country remains in a recession. That is the pessimistic view of two research houses, which concluded that the price recovery is highly fragile.

Citigroup said the market is not at the start of a cyclical upswing and that the spike in home prices cannot last. 'We caution against over-optimism, because fundamentally the market is not ready for a sustained price recovery,' analyst Wendy Koh wrote in a report on Thursday.
In the same report, she downgraded Allgreen to 'sell', putting the developer in the same 'sell' basket as City Developments, CapitaLand and Keppel Land. Citi also downgraded Wing Tai to 'hold'. While there has been strong resale demand, the call for new homes is patchy and rental demand remains weak, Ms Koh said.

Resale prices of some projects have risen and some developers are reducing discounts for new projects but Nomura Singapore believes these seemingly positive factors are misleading. It maintained that the demand for new homes was boosted by price discounting and the interest absorption scheme.

'A rapid deterioration in rents amid higher supply and weaker demand has undermined yield expectations,' it said. Nomura also pointed to the damaging effect of rising unsold inventory and forced sales by defaulting or distressed buyers who bought on deferred payment. These properties form a source of 'hidden' inventory that will place further pressure on asking prices.

Lippo buys Aura Park for $55.5m

(SINGAPORE) Lippo Realty has bought Aura Park at Holland Road near the Botanic Gardens for $55.5 million or about $1,280 per square foot (psf) of potential gross floor area - a fresh high for the location.

The price is inclusive of development charges (DC) estimated at $8.5 million, but this is subject to verification of the site's development baseline.

The collective sale of the 35,724-sq-ft freehold site was brokered by Savills Singapore, which is also marketing Tulip Garden nearby. The property consultancy declined to give an update on negotiations for Tulip Garden, whose tender closed last week. Negotiations are currently under way for the 316,709-sq-ft site which has a 1.6 plot ratio and an estimated $30 million DC.

Aura Park, which is about 20 years old, is a four-storey development with 28 existing units. Aura Park is zoned for residential use with a 1.4 plot ratio (ratio of maximum potential gross floor area to land area) and a four-storey maximum height.

Market watchers reckon Lippo's breakeven cost for a new high-end apartment project could hit around $1,900 to $2,000 psf, depending on just how posh the new project is. 'We've not worked out the details, but we're looking at a luxury boutique development which we should be able to launch sometime next year,' Lippo Realty executive director Thio Gim Hock said when contacted by BT.

Aura Park is almost opposite Tuan Sing's Botanika development, where it sold 12 units through auction in April, at prices ranging from $1,710 psf to $2,420 psf. The average price achieved was $2,040 psf.Next to Aura Park is Carlton Terrace, which Bukit Sembawang bought in late 2005 for $541 psf per plot ratio (ppr).

The most recent transaction in the area involved Leedon Heights, which was sold in April for $835 million or $1,062 psf ppr. The site has a 1.6 plot ratio and 12-storey maximum height. Another nearby collective sale was that of Holland Crest, which was bought by BBR Holdings for $70.6 million or $837 psf ppr, in March.