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CONTENTS
p2 June Home Sales Plunge – Reduced
Policy Risk Ahead?
p5 Singapore Property News This Week
p11 Resale Property Transactions
(July 4 – July 10)
Welcome to the 61st edition of the Singapore Property Weekly. Hope you like it! Mr. Propwise
FROM THE
EDITOR
NOTICE: Please note that Propwise.sg is a property of Aktive Group Pte. Ltd., which is not associated or affiliated in any way with Ascendant Assets Pte. Ltd. or Getty Goh, who is a guest contributor.
SINGAPORE PROPERTY WEEKLY Issue 61
Page | 2 Back to Contents
June Home Sales Plunge – Reduced Policy Risk Ahead?
By Mr. Propwise
Total residential sales fell by an estimated
21% month-on-month in June, with new home
sales falling by 19% (excluding Executive
Condominiums) to 1,371 units while
secondary market sales fell by 29% to 1,010
units. This is the third month of contraction for
total residential sales and the second month
for new home sales (excluding ECs).
A clear trend of falling volumes and
decreasing liquidity in the housing market is
forming, likely caused by a pullback in
housing demand, as investor appetite for
property is satiated both by the large number
of launches in the recent months and also as
SINGAPORE PROPERTY WEEKLY Issue 61
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worries about sluggish economic growth start
to dominate.
Tougher times for developers ahead?
Only three projects generated sales of over
100 units in June, compared to four in May
and six in April. The top three projects were
River Isles in Punggol (263 units sold in June,
median price $835 PSF), Sea Esta in Pasir
Ris (255 units sold, $906 PSF), and
Watercolours in Pasir Ris (201 units sold,
$735 PSF).
And while the Monthly Sell-Through Rate
(excluding ECs), defined as the units sold in
the month divided by the units launched in the
month, shot up from May’s 69% to 105% in
June, this was due to a 47% drop in the
number of units launched (i.e. the
denominator shrunk significantly).
Developer inventory, while falling 1.1% in
June to 7,234 units, is close to a five year
high. If sales continue to fall significantly,
developers could be stuck with a lot of unsold
units, which would put pressure on either the
prices of new home sales (if developers
decide to cut prices to get rid of unsold units)
or their balance sheets (if they decide to hold
on to the unsold units and wait for better
times).
Sad state of the secondary market
Things are even worse in the resale market,
which saw an estimated 29% month-on-
month drop in transaction volumes. The
secondary market as a percentage of total
sales fell from 41% in May to 37% in June,
significantly below the five year average level
of 57%.
SINGAPORE PROPERTY WEEKLY Issue 61
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What this means is that homeowners looking
to sell their property will likely find it
increasingly difficult, despite their asking
prices typically being significantly below the
prices of new homes sold in the neighboring
areas. Property has always been an illiquid
investment – the drying up of transaction
volumes makes it more risky.
Weaker market reduces policy risk
One of the few bright spots in the market is
that the risk of further dampening policy
measures from the government has been
reduced. A statement by the Ministry of
National Development on the Additional
Buyer’s Stamp Duty suggests that the
government is satisfied that the market is
“moving towards a stable and sustainable
path”, given that the proportion of foreigners
and companies buying private residential
property had fallen from 20% in 2011 to 7%,
and that private home prices had only risen
0.3% in the first half of 2012 compared to a
6% increase in 2011.
As long as prices and volumes do not spike
up (the URA’s flash estimate of the 2012Q2
Private Property Index increasing 0.4% after
falling 0.1% in 2012Q1 is a risk factor if the
trend reversal sustains), the government is
unlikely to put further brakes on the market.
However, this is likely to be of little comfort to
both developers and investors in a market
where volumes are declining quickly.
SINGAPORE PROPERTY WEEKLY Issue 61
Singapore Property This Week
Page | 5 Back to Contents
Residential
H1 2012 sales are higher than H1 2011’s
despite fall in June
Developers sold a total of 1,371 units,
excluding ECs, in June, a 19.5% fall from
May’s figures but a 16% increase from June
2011. Despite this, the total for H1 2012 is
12,098 units, up from H1 2011’s 8,039 units
and nearly the 15,904 units sold in the whole
of 2011. The total for 2012 is expected to hit a
record high of 18,000-22,000 units.
Meanwhile, Q2 2012’s private home price
index increased by 0.3% from Q4 2011, and is
expected to remain stable with 0.5-1%
increment, no change or just a slight fall in H2
2012, especially with competition from the
constant supply from new launches.
Competition also comes from the resale
market, as evident from the increase in
transaction volumes from 1,906 units in Q1
2012 to 3,402 units in Q2. The proportion of
homes sold in the below $1,000 range also
increased from 35.2% to 55% from May to
June, suggesting the stabilising home prices.
Prices are unlikely to fall, however, especially
if the demand is sustained with help from the
low interest rates and affordable lumpsum
investment size of shoebox units.
Developer sales are driven mainly by the
mass-market projects in the Outside Central
Region (OCR), which accounted for 81% of
the 1,371 units sold in June, excluding ECs,
though it fell by 8% from May’s figures.
SINGAPORE PROPERTY WEEKLY Issue 61
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Sales in the Rest of Central region fell by
67.1% to 119 units while sales in the Core
Central Region increased by 4.4% to 141
units in the same period. If ECs are included,
the total number of units sold in June is 1,725,
a 16.3% fall from May but a 23.7% increase
from June 2011.
Three freehold residential sites up for sale
The first are two adjoining sites at Upper
Serangoon, asking for $40 million. Including a
$6.1 million development charge, the price
comes up to $934 psf. The total combined
land area of 42,846 sq ft (20,228-sq-ft from 1
Surin Avenue and 22,618-sq-ft from 790
Upper Serangoon Road) can potentially be
redeveloped into 3,500 sq ft to 5,000 sq ft 26
cluster terrace houses, which are attractive to
investors because of the higher rental yield of
4-5% compared to 3% for conventional landed
housing. The tender closes on Aug 15.
The second freehold site up for sale is
Chancery Garden, a mixed landed site in
District 11 which is asking for $45 million or
$1,527 psf. It consists of 10 apartment and
townhouse units in a three-storey block sitting
on a 29,468 sq ft site. Zoned for two-storey
mixed landed housing, a total of 18 units of
strata terraces, six strata semi-detached and
10 strata terraces, or other configurations can
be built on the site, subject to approval. Given
the site’s regular configuration and location, it
is expected to be very popular. The tender
closes at 3pm on Aug 23.
The final site is Kismis Lodge located at Toh
Tuck Road, which is asking for $90-95 million
or $1,281-1,352 psf. No development charge
is expected to be payable for the site which
consists of 64 walk-up apartments on a
70,283 sq ft site. Zoned for three-storey mixed
landed housing, the site can be redeveloped
SINGAPORE PROPERTY WEEKLY Issue 61
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into a combination of conventional terrace
houses, semi-detached houses and detached
houses; or cluster landed housing with strata
terrace houses, strata semi-detached houses
and strata bungalows with communal
facilities. Since the site has a regular layout
with four frontages, it is expected to be
popular among developers. The tender for
Kismis Lodge closes at 2.30pm on Aug 15.
Roxy-Pacific Holdings Limited buys
Sophia Mansions for $43.3m
Freehold 19-unit Sophia Mansions at Mount
Sophia was sold was sold to Roxy-Pacific
Holdings Limited for $43.3 million or $1,175
psf ppr based on the 2.1 gross plot ratio on
the 17,545 sq ft land area. There can be an
additional GFA of 1,105 sq ft built for
balconies without any development charge,
resulting in a $1,140 psf ppr land price. The
site is close to the Dhoby Ghaut MRT station,
and shopping malls such as Plaza Singapura
and The Pomo.
28 of 40 terrace houses released at 99-year
leasehold Haus@Serangoon Garden sold
28 of the 40 terrace houses previewed at
Haus@Serangoon Garden had been sold.
Prices for an intermediate terrace unit with a
1,615 sq ft land area costs $2.4 million while a
corner unit with a 2,284 sq ft land area costs
$2.8 million. There will be a total of 18 corner
units and 79 intermediate terrace houses,
each with two storeys, a basement and an
attic. 40% of the buyers live in the
neighbourhood.
Strong competition expected for Farrer
Road reserve list site
The 99-year leasehold site private housing
site at Farrer Road, near Botanic Garden MRT
Station, has been triggered for release at
SINGAPORE PROPERTY WEEKLY Issue 61
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$28.888 million. The 0.27- hectare site could
potentially be developed into 41,323 sq ft of
gross floor area, which can support 40 new
homes. The expected winning bid is in the
range of $950-$1,000 psf ppr from 10 to 15
bidders, with an expected selling price at
$1,800 to $1,900 psf since it has a prime
address and has a lowland price quantum of
around $40 million.
UIC to launch residential segment of V On
Shenton
100 to 200 units of the 510 residential units at
V On Shenton, a 99-year leasehold
commercial and residential development
located at Shenton Way will be launched at an
indicative pricing of $2,200 to $2,300 psf, with
the cheapest unit (under 500 sq ft) at under
$1 million. Unit sizes range from 441 sq ft to
474 sq ft for a studio apartment, 484 sq ft to
506 sq ft for one-bedroom units, 689 sq ft to
743 sq ft for one-bedroom-plus-study units,
883 sq ft to 1,033 sq ft for two-bedroom units,
1,055 sq ft to 1,216 sq ft for two-bedroom-
plus-study units, 1,356 sq ft to 1,765 sq ft for
three-bedroom units, and 3,315 sq ft to 7,255
sq ft for penthouses. The 53-storey residential
tower also offers a lap pool, gym, laundromat
and outdoor island kitchens, and city and sea
views for many of the higher-floor units, as
well as 588 car park lots, and six handicap
lots and three power charging lots. The
development is located near the Raffles Place
and Tanjong Pagar MRT stations, the Marina
Bay Financial Centre, Gardens by the Bay,
Singapore Flyer and Esplanade Theatres on
the Bay. None of the units in the23-storey
office tower of the development will be put up
for sale.
SINGAPORE PROPERTY WEEKLY Issue 61
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Commercial
AEW said to be selling Robinson Point
The 21-storey freehold CBD office block is
said to be sold to a small group of Asian
investors through sale of shares at $284
million or $2,132 psf based on its 133,214 sq
ft net lettable area. Its GFA reflects an 11.2
plot ratio, meaning that it has been developed
to its maximum potential. It can however, be
strata titled into smaller units and resold and
a profit.
Record sales registered for strata
commercial properties
A record high of 669 strata shops and 632
strata offices were transacted in H1 2012 and
may remain so. The strong sales for the first
half of this year were driven by the primary
market, which accounted for 66% of the
former’s sales and 72% of the latter’s sales.
Strata shop supply was mainly in the suburbs
last year, unlike this year, which are mainly in
the central region, bringing the average unit
price up by 24% to $3,273 psf. New strata
shops with longer tenures and good locations
also attracted buyers since they are
considered good long-term investments.
Meanwhile, older resale strata shops also
attracted buyers with their lower prices,
bringing the average unit prices up by 23% to
reach $2,825 psf in the secondary market,
despite a fall in sales volumes.
The primary sales transactions for strata
offices increased by 19 times from 2011 to
$814.9 million while the average unit price
increased by 56% to $2,129 psf, driven by the
increase in new strata office projects in the
CBD and smaller-sized strata office units. The
secondary market, however, saw a 24% fall in
transaction volume and lower average unit
SINGAPORE PROPERTY WEEKLY Issue 61
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prices of $1,706 psf.
Transaction volumes of shophouses
decreased by 25% to 132 units from last year,
possibly a result of the increase in unit prices
by 34% to $2,804 psf, bringing the overall
value of sales up by 4% to $674.6 million.
The commercial sector is likely to continue
seeing brisk sales and price increments,
especially for strata shops and shophouses in
good locations. However, investors may be
more cautious since office rents have been on
the decline.
Two adjacent Chang Charn Rd sites up for
sale
The two sites, at 8 and 10 Chang Charn
Road, are asking for $45 million. A quality six-
storey building with a built-up area of 34,907
sq ft sits on the 12,519 sq ft site at 8 Chang
Charn Road, while the 8,762 sq ft site at 10
Chang Charn Road consists a single-storey
detached factory and a two-storey office block
in front. The latter site has a 2.5 plot ratio and
an existing built-up area of 5,274 sq ft. The
two sites have a remaining tenure of 45 years
and are zoned Business 1. Given its central
location (near Redhill MRT Station),
redevelopment potential, and the lack of
supply of similar plots, the site is expected to
be popular.
SINGAPORE PROPERTY WEEKLY Issue 61
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Non-Landed Residential Resale Property Transactions for the Week of Jul 4 – Jul 10
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 THE CLIFT 829 2,326,400 2,807 99
2 ICON 560 1,031,000 1,842 99
3 THE METROPOLITAN CONDOMINIUM 775 1,150,000 1,484 99
3 REGENCY SUITES 980 1,350,000 1,378 FH
4 CARIBBEAN AT KEPPEL BAY 1,485 2,300,000 1,548 99
5 ONE-NORTH RESIDENCES 1,421 2,000,000 1,408 99
5 VENTANA 1,206 1,650,000 1,369 FH
5 JUBILEE RESIDENCE 495 670,000 1,353 FH
5 THE PARC CONDOMINIUM 980 1,290,000 1,317 FH
5 CARABELLE 1,259 1,535,000 1,219 956
5 THE STELLAR 1,389 1,680,000 1,210 FH
5 PALM MANSIONS 1,098 1,030,000 938 FH
5 THE INFINITI 1,281 1,130,000 882 FH
7 THE BENCOOLEN 958 1,230,000 1,284 99
8 CITYLIGHTS 570 1,000,000 1,753 99
8 CITYLIGHTS 678 1,040,000 1,534 99
8 CITYLIGHTS 1,841 2,650,000 1,440 99
9 CAIRNHILL MANSIONS 2,024 3,500,000 1,730 FH
9 ASPEN HEIGHTS 883 1,355,000 1,535 999
10 DUCHESS MANOR 1,163 2,050,000 1,763 999
10 ASTRID MEADOWS 3,810 6,500,000 1,706 FH
10 DUKES RESIDENCE 926 1,530,000 1,653 FH
10 VALLEY PARK 1,808 2,780,000 1,537 999
10 SOMMERVILLE PARK 1,066 1,600,000 1,501 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
11 PARK INFINIA AT WEE NAM 1,001 1,855,000 1,853 FH
11 SOLEIL @ SINARAN 1,453 2,580,000 1,775 99
11 AMANINDA 614 888,888 1,449 FH
11 M21 710 1,020,000 1,436 FH
11 THE SPINNAKER 1,302 1,682,000 1,291 FH
11 THOMSON 800 1,625 1,960,000 1,206 FH
12 TRELLIS TOWERS 1,485 1,785,000 1,202 FH
12 THE BELLEFORTE 1,335 1,490,000 1,116 FH
12 PARC HAVEN 1,464 1,597,800 1,091 FH
12 KEMAMAN POINT 861 902,000 1,047 FH
12 THE MORNINGTON 1,259 1,160,000 921 FH
13 WOODSVILLE MANSIONS 1,916 1,630,000 851 FH
14 MILL CREEK 775 858,000 1,107 FH
14 ATRIUM RESIDENCES 947 955,000 1,008 FH
14 ASTOR 861 795,000 923 99
14 CENTRAL MEADOWS 1,001 910,000 909 FH
14 SUNNY GROVE 1,033 820,000 794 FH
14 WING FONG COURT 1,087 815,000 750 FH
14 WING FONG MANSIONS 1,227 830,000 676 FH
14 SIMS GREEN 2,056 1,215,000 591 99
15 ONE FORT 1,206 1,760,000 1,460 FH
15 KATONG PARK TOWERS 1,475 1,650,000 1,119 99
15 TEMBELING COURT 1,324 1,305,000 986 FH
15 MANDARIN GARDEN CONDOMINIUM 1,528 1,485,000 972 99
SINGAPORE PROPERTY WEEKLY Issue 61
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NOTE: This data only covers non-landed residential resale property
transactions with caveats lodged with the Singapore Land
Authority. Typically, caveats are lodged at least 2-3 weeks after a
purchaser signs an OTP, hence the lagged nature of the data.
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
16 CASA MERAH 958 1,110,000 1,159 99
16 BAYSHORE PARK 936 895,000 956 99
16 SUNHAVEN 1,259 1,200,000 953 FH
16 CHANGI COURT 1,389 1,228,000 884 FH
16 AQUARIUS BY THE PARK 1,227 1,080,000 880 99
16 THE CLEARWATER 2,303 1,880,000 816 99
16 BEDOK COURT 2,271 1,850,000 815 99
16 TANAMERA CREST 1,206 970,000 805 99
17 COASTAL VIEW RESIDENCES 1,163 1,220,000 1,049 999
17 EDELWEISS PARK CONDOMINIUM 947 855,000 903 FH
17 CARISSA PARK CONDOMINIUM 1,324 1,125,000 850 FH
18 TAMPINES COURT 1,668 1,038,000 622 101
19 CENTRAL VIEW 1,259 1,050,000 834 99
19 REGENTVILLE 1,076 839,000 779 99
19 RIVERVALE CREST 1,206 888,000 737 99
20 BOONVIEW 646 810,000 1,254 FH
20 THE GARDENS AT BISHAN 1,227 1,210,000 986 99
20 BRADDELL VIEW 1,701 1,350,000 794 99
20 BISHAN PARK CONDOMINIUM 1,507 1,130,000 750 99
21 MAPLEWOODS 1,324 1,787,400 1,350 FH
21 THE NEXUS 1,335 1,668,750 1,250 FH
21 BINJAI PARK 1,033 1,255,000 1,215 999
21 SIGNATURE PARK 1,701 1,800,000 1,058 FH
21 SIGNATURE PARK 1,701 1,708,000 1,004 FH
21 SIGNATURE PARK 1,421 1,400,000 985 FH
21 HILLVIEW GREEN 1,593 1,480,000 929 999
21 REGIS MANSIONS 1,206 988,888 820 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
22 THE CENTRIS 1,152 1,250,000 1,085 99
23 CASHEW HEIGHTS CONDOMINIUM 1,658 1,638,000 988 999
23 MERAWOODS 1,938 1,880,000 970 999
23 CASHEW PARK CONDOMINIUM 1,819 1,568,000 862 999
23 REGENT HEIGHTS 1,173 885,000 754 99
25 CASABLANCA 947 765,000 808 99
26 SEASONS PARK 1,292 1,000,000 774 99
27 SELETARIS 1,636 1,300,000 795 FH
27 SELETARIS 1,636 1,280,000 782 FH
27 SELETARIS 1,636 1,260,000 770 FH