Singapore Property News & Prices

Overall prices rise 2-5%, with new highs in resale prices in some segments

Demand for new private homes in the first quarter of 2010 more than doubled compared to Q4 2009, according to a new report. Close to 4,000 new units were sold in Q1 2010, compared to only 1,860 in the previous quarter.

The report, by CB Richard Ellis (CBRE), also said that overall private home prices rose by 2-5 per cent in Q1 2010. The price growth was supported mainly by resale transactions as developers maintained the prices of new launches in the same locations at last quarter’s levels.

In fact, resale prices in some segments hit new highs in Q1. Research from DTZ shows that resale prices of freehold landed homes as well as leasehold apartments outside the prime districts (a proxy for mass market homes) saw new peaks in Q1 2010.

Buyers continued to be out in force despite compressed yields, government measures and the large number of new land sites released during the quarter by the government.

‘Many investors are buying in anticipation of future rises in rents and prices as the economy is improving and the long-term fundamentals of Singapore are strong,’ said DTZ’s executive director for residential Margaret Thean.

In the prime districts of 9, 10 and 11, the average resale price for freehold landed homes rose by 5.7 per cent to reach a new high of $1,529 per square foot (psf) in Q1 – a 28.2 per cent rebound from the bottom one year ago. Resale prices of landed properties have now climbed for three consecutive quarters.

Prices of leasehold homes outside the prime districts (mass market homes) also hit a new peak. Non-landed resale home prices rose 2.1 per cent to $623 psf in Q1 2010, surpassing the $615 psf achieved in Q4 2007.

But the resale prices of luxury and prime freehold non-landed homes are still some 10.7 per cent and 1.9 per cent respectively below their previous highs, DTZ said. Prices of luxury homes rose 4.2 per cent to $2,500 psf in Q1, while prices of prime homes climbed by a smaller 3.7 per cent to $1,456 psf.

The two segments still have room to gain as market interest has shifted from mass market to luxury and prime freehold homes.

‘Most of the new launches in the first quarter were freehold projects located in prime districts 9, 10 and 11,’ noted Joseph Tan, CBRE’s executive director for residential. These included Cube 8, Holland Residences, The Laurels and Waterscape. Sales were also strong for upmarket projects in the central business district. In Tanjong Pagar, the takeup at Altez and 76 Shenton Way was brisk because of their city locations and composition of small apartments.

The buyer profile for new units also changed substantially in Q1. Based on caveats lodged to date, about 33.7 per cent of the buyers in the first quarter of 2010 were HDB addressees (who can be considered HDB upgraders), CBRE said. The proportion of HDB upgraders in Q1 is lower than the 63.7 per cent of HDB upgraders who bought new homes a year ago in the first quarter of 2009, after the lull in 2008.

Added Mr Tan: ‘Most of the new launches then were mass-market type projects such as Caspian, Double Bay Residences and Mi Casa. In the first quarter of 2010, most of the projects launched were more upmarket and are located in the prime districts of Sentosa Cove and in the Downtown Core.’

Foreigners bought around 23.5 per cent of the new homes in Q1 2010. The top three nationalities were Indonesians, Malaysians and PRC Chinese.

CBRE expects the take-up of new homes to fall to around 3,000 units in the second quarter of 2010. Home prices are expected to rise at a gradual pace, held in check by the government measures.

Chua Chor Hoon, head of DTZ’s South-east Asia research unit, likewise said that if the buying fever and price increase continue or intensify, more government measures are likely to be introduced. She expects private home prices to climb by 5-15 per cent in 2010.

Source : Business Times – 31 Mar 2010

Industry players said sales of new private homes are likely to hit close to 4,000 units in the first quarter of this year.

The figure is more than double the numbers of homes sold in the fourth quarter last year, despite fresh anti-speculative measures introduced by the government in February.

New property launches such as The Altez and The Vision have pushed home sales up in the first quarter.

So far, the first two months of the year saw strong take up of 2676 units, and the sales momentum is expected to continue in March.

“It will probably be hovering at about 1,100 to 1,500, so if you add on the total, you will probably achieve something like 3,800 to 4,100, likely to be in the range of 3,900 roughly,” said Donald Han, the managing director of Cushman & Wakefield. “If you move into next quarter, chances are, we will be hovering at that level.”

Overall, market watchers said home prices rose by some two to five per cent on-quarter in the first three months this year.

According to DTZ Research, prices of non-landed luxury homes climbed 4.2 per cent on average to S$2,500 per square foot, while private apartments in prime districts rose 3.7 per cent to over S$1,450 per square foot.

DTZ Research added that landed homes in districts 9, 10 and 11 cost 5.7 per cent more.

Prices reached a new high of S$1,529 per square foot, which is a 28.2-per-cent rebound from the bottom one year ago.

Industry players said it could trend up further.

“The chance of prime moving up 5, 10, even 20 per cent within a year is very real, with the right factors underpinning it,” said Karamjit Singh, managing director of Credo Real Estate.

“The same can’t be said for mass market that is generally a more price sensitive, more scientific a market where the cue is taken from where HDB market is, affordability, interest rates, housing loans policy also.”

Meanwhile, property consultancy firm CB Richard Ellis noted the change in home buyers’ profile.

First quarter last year saw upgraders from public housing snapping up 64 per cent of new homes.

However, about 66 per cent of home buyers are private home owners this year.

CBRE said that foreigners bought 23.5 per cent of the new homes launched this year, majority of them from Indonesia, Malaysia and China.

Observers are optimistic about prospects ahead, saying factors that could derail the growth in the property market include a sharp increase in interest rates, continued weakness in the Eurozone and further cooling measures by the government.

Source : Channel NewsAsia – 30 Mar 2010

High-end properties are revisiting the $3,000 psf price range. In the Marina Bay area, the 1,111-unit The Sail @ Marina Bay steals the spotlight once again with six transactions in the week of Jan 26 to Feb 5; four above $2,000 psf while two crossed the $3,000 psf level. While Sentosa Cove and Keppel Bay are abuzz over the opening of Resorts World at Sentosa, excitement is also mounting at Marina Bay as Las Vegas Sands announced last Wednesday it will open the first phase of its US$5.5 billion ($7.8 billion) Marina Bay Sands integrated resort with casino on April 27, and the second phase on June 23.

The two resale transactions at The Sail at above $3,000 psf were for two neighbouring units on the 58th floor of the 63-storey Tower 2. According to a Feb 1 caveat lodged with URA Realis, an 883 sq ft two-bedroom unit was sold for $2.69 million or $3,048 psf. The previous owner purchased the unit when Tower 2 was launched in late-2004 for a mere $961,830 ($1,090 psf), hence recognising capital gains of close to 180% in five years.

The other sale was for a 936 sq ft two-bedroom apartment that went for $3 million ($3,204 psf). The previous owner recognised capital gains of 200%, as he had purchased the unit at launch for $1,065 psf or $997,216.

Developed jointly by giant listed property developer City Developments Ltd and AIG Real Estate, Tower 2 was launched in October 2004 and completed in mid-2008, while the 70-storey Tower 1 was launched in 2005 and completed in 4Q2008.

The last time a unit at The Sail crossed the $3,000 psf level was when a 60th-floor, 1,033 sq ft unit in Tower 2 changed hands in a sub-sale for $3.5 million ($3,387 psf), according to an April 4, 2008 caveat. That is still the record in terms of psf price. The previous owner of the apartment, however, had purchased the unit in a sub-sale for $2,999 psf, according to an Aug 6, 2007 caveat, and only recognised some 13% in gains.

At the peak of the most recent property boom from August to October 2007, there were five sub-sales at $3,000 to $3,300 psf at The Sail. Perhaps we will see more transactions at such price levels in the coming months as the opening of the IR gets closer.

The other four transactions were at $2,080 to $2,600 psf (see table). According to a Feb 2 caveat, an 861 sq ft, Marina Bay-facing unit on the 39th floor of Tower 1 changed hands for over $2 million ($2,367 psf). The previous owner did a quick flip; according to an earlier caveat, the unit last changed hands in August at $2,100 psf. Hence, he recognised a gain of 12.7% in about six months. The first owner purchased the property in November 2005 at the launch for just over $1 million ($1,174 psf). His capital gain over a four-year period was close to 79%.

While The Sail is the most actively traded project at Marina Bay, Icon earns that title at Tanjong Pagar. Launched in 2003 just after the SARS outbreak, the 646-unit project by Far East Organization was completed in 2007. From end-January to early February, there were three resale transactions at Icon at $1,449 to $1,600 psf.

One was for a 915 sq ft unit on the 25th floor of the 46-storey building, which changed hands for $1.464 million ($1,600 psf), according to a Feb 1 caveat. The previous owner purchased the unit three years ago, according to a February 2007 caveat, for $896,000 ($979 psf), hence seeing a gain of 63.4%.

A 13th floor, 657 sq ft one-bedroom apartment went for $1,599 psf ($1.05 million). This is the third time the property has changed hands in the secondary market. The previous owner purchased the unit in February 2007 for a prosperous amount of $888,888 ($1,354 psf), hence recognising an 18% gain. However, the owner before that saw an 82% capital appreciation in just over a year as he had purchased it for just $488,000 ($743 psf), according to a December 2005 caveat. The very first owner purchased the unit at launch in 2003 for $454,600 ($692 psf).

With Far East Organization having started private previews of the 280-unit, 62-storey Altez right next door to Icon, interest has once again returned to the area. Since the private previews started on Feb 10, 140 out of 155 units released were sold at an average of $1,850 psf. Not surprisingly, asking prices at Icon have also increased in tandem.

In the Tanjong Pagar area, Allgreen Properties is expected to launch its project (Skysuite) next to Altez in 2Q, and market speculation is that Hong Leong Holdings will likely launch 76 Shenton Way, which will be redeveloped into a high-end condominium tower at prices in the $2,000 psf range.

Source : The Edge – 1 Mar 2010

FAR East Organization said yesterday it has sold 100 units in its latest residential project, the 280-unit Altez in Enggor Street.

The developer said that during a preview for priority customers last week, 100 of the 104 units released were sold. Prices ranged from $1,600 to $2,000 per sq ft (psf).

The units sold comprised one and two-bedroom apartments from levels 10 to 22 of the 62-storey development.

Far East said that Altez, at 250 metres high, will be Singapore’s tallest residential development. It is next to Tanjong Pagar MRT station.

About 60 per cent of the buyers at Altez are foreigners, said Chia Boon Kuah, Far East’s chief operating officer for property sales.

‘The robust response to Altez demonstrates demand for well-conceived products of value in an excellent location in the city centre,’ Mr Chia said.

‘With the wide array of amenities and F&B outlets in this area, an MRT station at its doorstep, the upcoming New Downtown nearby and the possible future transformation of Tanjong Pagar into a waterfront city, buyers of Altez are assured of the positive prospects of this area.’

Far East will release more two-bedroom apartments tomorrow. Market watchers say these are expected to be priced higher on a psf basis than those sold already.

Among other amenities, Altez offers five floors of sky gardens and another two storeys of facilities.

Source : Business Times – 17 Feb 2010

NOW that the holidays are out of the way, property developers are ready to lay out a spread of new offerings for home-seekers.

At least six projects are being prepared for launch, while others have started preview sales or will have new phases released.

At the higher end of the market, Wing Tai is preparing to sell its 147-unit L’Viv in Newton Road at an average price believed to be about $2,000 per sq ft (psf).

The units at the freehold 32-storey development will be fairly small. About half are one-bedroom apartments between 600 sq ft and 700 sq ft, while the rest are two-bedders about 1,000 sq ft in size.

There are also three penthouses of more than 2,000 sq ft, according to Wing Tai. It is offering the deferred payment scheme for a limited period for the project, which is expected to be completed in 2014.

Elsewhere, Far East Organization has started selling units at Altez, a 62-storey project along Enggor Street at Tanjong Pagar, located near its Icon condominium.

Altez is set to be the tallest residential development in Singapore when completed in 2015, according to Far East.

A hundred units have already been sold, at prices ranging from $1,600 psf to $2,000 psf, said the developer in a release yesterday. Sales at the 99-year leasehold condo reportedly started last Wednesday.

The units sold were one- and two-bedroom apartments on the 10th to 22nd floors. Far East will release another batch of two-bedroom apartments on the 23rd level and higher tomorrow.

So far, 60 per cent of the buyers have been foreigners, said Far East’s chief operating officer for property sales, Mr Chia Boon Kuah.

The project has 280 units, ranging from one-bedders of 527 sq ft to a 4,058 sq ft penthouse.

Popular Holdings is also preparing to start sales of its boutique development, 18 Shelford Road, this weekend. The freehold project in Bukit Timah will have 19 units, but Popular declined to disclose prices. Recent transactions at nearby developments have been done from about $1,000 psf for older projects such as Nineteen Shelford, to about $1,400 psf for new launches like Shelford Suites, which is still being built.

House hunters can also look forward to more units being released at The Interlace in Alexandra Road, on the former Gillman Heights site. Developer CapitaLand said last week it would launch new phases after the Chinese New Year.

It may also start selling the 55-unit The Nassim, in Nassim Hill on the former ANA Hotel site, closer to the middle of the year. Analysts expect prices to exceed $3,000 psf.

Last week, CB Richard Ellis said it sold about 20 units of Centennia Suites, developed by Indonesia’s Lippo Group and located on the former Kim Seng Plaza site.

Units at the freehold project, which has 97 flats, were sold at $2,000 psf to $2,100 psf, it said.

In the mass market segment, agents are gearing up to market The Vision at West Coast, on West Coast Highway, and next to Waseda Shibuya Senior High School.

The 99-year leasehold development will have 295 units in total: 281 apartments and 14 strata houses, said agents.

Sizes start at about 800 sq ft for a two-bedroom unit and go up to 2,700 sq ft for a penthouse and about 5,000 sq ft for the strata houses.

In the East, Frasers Centrepoint is laying plans for its new project on the former Flamingo Valley site at Siglap, which it may launch after the first quarter. The five-storey development will have 393 units, including one-bedroom to four-bedroom apartments, duplexes and penthouses, agents said.

Prices have not been released, but the nearby Siglap V, located across the road from Siglap Centre, has reportedly sold units at between $1,100 psf and $1,500 psf.

Developer MCL Land is also said to be gearing up to launch The Estuary at Yishun, which will have 608 units.

The project will have one-bedroom to four-bedroom apartments, from under 700 sq ft to over 1,500 sq ft. Indicative prices are said to be about $850 psf, according to property agents.

Source : Straits Times – 17 Feb 2010