Property Market Sentiments

Modest bids for Prince Charles Crescent site
Top bid of $821 psf ppr for upscale site lower than some analysts' tips


PUBLISHED ON APR 17, 2014 1:10 AM


BY RACHAEL BOON
A CONSORTIUM of UOL Venture Investments and Kheng Leong Company has lodged the top bid for a site at upscale Prince Charles Crescent but the price tag is lower than some analyst tips.

It tendered $463.1 million, or $821 per sq ft per plot ratio (psf ppr), for the 268,713 sq ft Parcel B. Some consultants had predicted bids of about $900 to $1,000 psf based on other recent sales in the area although others had estimates that were near the consortium's bid.

The top bid of the seven lodged was 5 per cent more than the second-highest offer of $440.2 million by three joint bidders, City Developments Limited's Verwood Holdings, Hong Leong Group's Intrepid Investments and Hong Realty's Garden Estates.

Jones Lang LaSalle Singapore research head Ong Teck Hui said: "The bidders are obviously concerned about the slowing residential market, the substantial unsold supply in the immediate vicinity and the weak response to new sales launches, especially after total debt servicing ratio was imposed."

He noted that nearby projects such as Alex Residences and Mon Jervois still have unsold units, while The Crest is expected to launch soon.

Mr Ong reckons about 800 units are unsold in the area.

"In a market slowdown with declining prices, developers usually build in a wider profit margin in their bids so that if prices correct, they will still be able to make a decent return. We're seeing a margin of around 30 per cent being built into the top bid, which reflects a very cautious market outlook," he added.

CBRE research head Desmond Sim noted that the site's buyer will be able to launch the project in a later timeframe.

"The lower land price also extends flexibility to the winning bidder in determining the final product price," he added.

The 99-year leasehold site has a maximum permissible gross floor area of 564,308 sq ft, and is a 10-minute drive to Orchard Road and near Crescent Girls' School and Gan Eng Seng School.

Mr Liam Wee Sin, president of UOL's property division, said in a statement that the site is resilient as it is close to Orchard Road and the Central Business District.

"It can accommodate a 24-storey development with about 750 units, overlooking the low-rise developments in Mt Echo and Jervois area," noted Mr Liam, who added that the development can be priced realistically to attract buyers looking for "projects with strong locational attributes".

rachaelb@sph.com.sg

Surge of project launches expected

Up to 11 new private home projects likely to be previewed or go on sale
Published on Apr 19, 2014 1:11 AM



An artist's impression of The Sorrento, for which sales opened yesterday. The project sits on the site of the former Regent Gardens in West Coast Road and is expected to be sold at between $1,380 psf and $1,600 psf. -- PHOTO: CBRE
A hotly anticipated project in the city centre is Marina One (above, in an artist's impression), an integrated development with 1,042 homes. -- PHOTO: MARINA ONE


By Melissa Tan

HOME seekers had lean pickings in the first quarter with few launches to whet appetites, but there could be a surge of sorts over the next three months.

As many as 11 new projects are expected to begin previews or go on sale between now and the end of June, market watchers said.

That is in stark contrast to the first quarter, when only about seven major launches were held, with sales suffering as a result.

But the greater supply coming on stream means private home sales this month and next could be much higher than March's dismal showing, consultants noted.

However, they pointed out that developers will likely watch each other's launches like hawks to ensure there is enough demand. "The demand pool has shrunk. Developers will time their launches such that they don't cannibalise each other," said CBRE research head Desmond Sim. "They also don't want to flood the market."

The most immediate new launch is Allgreen's freehold condominium project The Sorrento, which began sales yesterday.

The project, which sits on the site of the former Regent Gardens in West Coast Road, is expected to be sold at $1,380 to $1,600 per sq ft (psf). Its 131 units range from 441 sq ft one-bedders to 1,808 sq ft three-bedders.

Next up will likely be Hong Leong Holdings' 845-unit Commonwealth Towers, which opened for preview last weekend and goes on sale on May 1.

The 99-year leasehold project in Commonwealth Avenue drew more than 1,500 visitors at its showflat in Margaret Drive last Sunday, according to Hong Leong. Prices have not been released yet but they are expected to be in the region of $1,600 to $1,800 psf on average.

Unit prices could range from $734,000 for a one-bedder to $2.45 million for a four-bedder, according to marketing agents.

About nine other upcoming projects are tipped to go on the market over the next two months.

Nearly half of these are in the city fringe - the 469-unit The Crest in Prince Charles Crescent, the 500-unit Highline Residences in Kim Tian Road, the 109-unit Amber Skye in Amber Road, and the 212-unit Kallang Riverside condominium in Kampong Bugis.

Consultants said the Kallang Riverside project will likely be cheapest of the four at $1,500 to $1,700 psf, since the Kampong Bugis area is a relatively untested residential area. They expect The Crest to sell at $1,600 to $1,800 psf and both Highline and Amber to go from $1,700 to $1,900 psf.

The city centre has the 106-unit Pollen & Bleu in Farrer Drive, tipped to go on the market at $1,900 to $2,100 psf.

Another hotly anticipated project in the city centre is Marina One, an integrated development in Marina Way with 1,042 homes. These could go for around $2,800 to $3,000 psf.

Previews expected next month include Waterfront@Faber in Faber Walk, which will have around 210 units, and a new City Developments project, Coco Palms, in Pasir Ris Grove, which could feature 944 units. Far East Organization may also launch its freehold Bijou project next to Pasir Panjang MRT next month. However, there is a chance the Bijou's launch may occur in the second half of this year, said Chesterton Singapore research head Elaine Chow.

Experts expect 500 to 800 new private homes to be sold this month, up from 480 in March.

melissat@sph.com.sg

HOT SPOT
Upcoming condo revives interest in Commonwealth

Firm residential demand expected, analysts say
Published on Apr 19, 2014 1:11 AM
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Official prices are not out yet, but units at the 99-year leasehold Commonwealth Towers are expected to be priced in the $1,600 to $1,800 psf range. -- PHOTO: HONG LEONG GROUP
Alexis, one of the condominiums near the Commonwealth vicinity, posted an average resale price of $1,939 psf in the past six months. -- ST FILE PHOTO


By Melissa Tan

THE upcoming launch of a new condominium in Commonwealth has given the mature estate renewed vitality.

Residential demand is likely to remain firm for the district due to its city fringe location, consultants say.

It is seen as a cheaper alternative to the neighbouring Alexandra area favoured by expatriates who move away from the city centre, said R'ST Research director Ong Kah Seng.

Knight Frank research head Alice Tan added that the future growth of the one-north precinct in the next five to eight years would propel a population increase in the vicinity and drive future residential demand for homes in Commonwealth. However, they also pointed out that investors who want to rent out units there may face competition from new projects in the nearby Redhill and Tiong Bahru districts.

The newest project to spring up in the area is the 99-year leasehold Commonwealth Towers at Commonwealth Avenue, by Hong Leong Holdings.

Official prices are not out yet but units there are expected to be priced around the $1,600 to $1,800 per sq ft (psf) range.

This makes the project more expensive than most of its neighbours across the street. The closest condominium to it is Queens at Stirling Road, followed by Alexis and The Anchorage.

Resale prices at those three projects have stagnated or achieved only slight increases last year, largely in line with the broader property market. However, all three developments saw strong rental demand last year.

Further down the road to the east is another cluster of condos that includes The Metropolitan Condominium and Ascentia Sky.

At the 722-unit Queens, completed in 2002, prices have averaged $1,350 psf over the past six months, according to caveats lodged with the Urban Redevelopment Authority (URA). The project is on a 99-year lease.

It commanded an average rent of $4.32 psf per month at the end of last year, URA figures show.

Resale prices and rents were higher at the newer, freehold Alexis along Alexandra Road.

The 293-unit project, completed in 2012, posted an average resale price of $1,939 psf over the past six months. Its rents at the end of last year were also higher than those at Queens, at $6.65 psf per month.

As for The Anchorage, which is opposite the Ikea furniture retail store, the 775-unit project had transactions averaging $1,385 psf over the past six months. Rents were $3.28 psf per month at the end of last year.

The popularity of Alexis may be due to the fact that a significant proportion of its units - about a third - are shoebox apartments of up to 500 sq ft, Mr Ong said.

However, he said this may not last because there will be many more shoebox apartments completed this year, adding that Alexis rents could stabilise at around $6.50 psf per month this year. In general, consultants said rents in the area could stagnate or fall due to a large supply of upcoming condos in the vicinity.

"The high influx of upcoming private residential developments in the Redhill and Tiong Bahru area may pose some competition for tenants," said Ms Tan.

Mr Ong said rents in the Commonwealth area could dip by up to 3 per cent this year from last year due to a tightened inflow of foreign professionals.

Commonwealth Towers will be launched on May 1.

melissat@sph.com.sg

It is interesting to note that for some property projects with good locations, prices are not really dropping, hmm it looks like the property market just wont crash

What's the trigger for market crash?

Why a high demand project/location should also suffered From massive price dropped?

What happen to Singapore banks when the loan volume drops drastically?

What happened to our SG50 celebration mood if all property prices dropped significantly? (both new and old ppty)

Last but not least, what's PAP minister going to answer the question:
Sir, my house price kept dropping every month, what are you going to do about it? ( of course, we are talking about 2016 General Election.)

Love Compassion


A Life not Reflected is a Life not Worth Living.

Sky Habitat relaunch draws crowds with lower prices
Published on Apr 21, 2014 1:00 AM
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The crowd at the relaunch of Sky Habitat last Saturday, when 80 units were sold. Developer CapitaLand rolled out a revamped showflat and slashed prices by about 10 per cent to 15 per cent at the relaunch of the 509-unit condo in Bishan. -- PHOTO: CAPITALAND

By Melissa Tan

ATTRACTIVE pricing and a revamped showflat drew a crowd of buyers at the Sky Habitat project in Bishan over the weekend.

Developer CapitaLand sold 80 units last Saturday as the Bishan Street 15 project - once known as the most expensive suburban condominium in Singapore - was relaunched with prices slashed by an estimated 10 per cent to 15 per cent.

This brings the total number of homes sold at the 509-unit condo so far to 262.

Sales figures for yesterday were not available.

The strong response at the relaunch showed that buyers were still very price-sensitive, analysts said yesterday.

Prices at Sky Habitat's relaunch ranged from $1,276 per sq ft (psf) to $1,590 psf, CapitaLand said.

This is about 10 per cent to 15 per cent lower than the price range of $1,435 psf to $1,893 psf at the project's launch two years ago.

CapitaLand said that absolute prices ranged from $984,000 for a one-bedroom plus study unit and up to $2.18 million for a three-bedder.

Its spokesman noted in a statement yesterday that since Sky Habitat's initial launch in April 2012, several additional cooling measures have been introduced.

"Developers have to make necessary adjustments in view of the prevailing market conditions... It would not be meaningful to compare prices of units bought at different points in time," she said.

The most popular units last Saturday were the three-bedders, the spokesman said, adding that about 200 cheques were collected for balloting.

Buyers at the showflat yesterday told The Straits Times that the project appealed to them because of its location near Bishan MRT station and its design by star architect Moshe Safdie.

The discounted prices helped to seal the deal, they added.

"The pricing is attractive and the design is iconic," said Madam Lilian Teo, 40, who works in the energy industry. She bought a 1,249 sq ft three-bedder for around $1.63 million or $1,304 psf.

Another buyer, Mr Lau Yuk Mun, 54, said he picked up a one-bedroom plus study unit as an investment after seeing the redesigned showflat for the 710 sq ft apartment.

"The showflat optimised the usage of space and showed that it could be well utilised... The price is also more attractive now," he said.

He paid $1,411 psf or slightly more than $1 million for the unit, and said he hopes to reap a rental yield of 4 per cent to 6 per cent.

Mr Mohamed Ismail, chief executive of real estate agency PropNex, said the solid sales show that buyers and investors are "not ready to buy if the price is not right".

CapitaLand has pared prices at other projects before.

It slashed prices at the 1,040-unit The Interlace early last year, bringing the total discount to as much as 20 per cent. Before that, it also cut prices at the 1,715-unit D'Leedon by up to 15 per cent.

Sky Habitat's next-door neighbour Sky Vue, also developed by CapitaLand, launched in September last year.

It moved nine units last month at a median price of $1,532 psf and sold 494 out of its 694 units by the end of last month, according to Urban Redevelopment Authority data.

melissat@sph.com.sg

Three-quarters of units at The Sorrento sold

BYNISHA RAMCHANDANI
nishar@sph.com.sg @Nisha_BT
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Cbresorrento210414
About 100 of the 131 units in upcoming freehold condominium The Sorrento on West Coast Road, which was launched for sale last Friday, were snapped up over the Easter weekend - PHOTO: CBRE
[SINGAPORE] About 100 of the 131 units in upcoming freehold condominium The Sorrento on West Coast Road, which was launched for sale last Friday, were snapped up over the Easter weekend.
Initially, 80 units were launched but eventually all 131 units in the Allgreen Properties development were released due to strong demand.
"The project was competitively priced, so we expected to have a fairly decent pick-up (rate)," said Joseph Tan, executive director (residential) of sole marketing agent CBRE, yesterday. The pricing was between $1,380 and $1,600 per square foot (psf).
The freehold status as well as the smaller scale of the development - which offers a degree of exclusivity vis-a-vis condominiums with hundreds of units - also proved a draw for buyers, added Mr Tan. Smaller units were popular with younger buyers while families opted for bigger ones.
The five-storey development - offering one- to three-bedroom units ranging from 441 to 1,808 sq ft - is situated on a site of about 78,100 sq ft. The units yet to be sold are said to be largely penthouses.
Similar five-storey project launches in West Coast/Pasir Panjang last year - such as Icon@Pasir Panjang, Seasuites, Village@Pasir Panjang and Whitehaven - have seen average transacted prices of $1,600 to $1,700 psf.
The Sorrento is expected to obtain its temporary occupation permit (TOP) in the first quarter of next year.

PUBLISHED APRIL 23, 2014

Foreigners' share of home purchases creeping up
However, absolute number of transactions is lowest since Q1 2009

BYKALPANA RASHIWALA
kalpana@sph.com.sg @KalpanaBT

Foreigners' share too has been creeping back up, touching 10 per cent for the first quarter. Although this is still low compared to the pre-ABSD proportion of 19 per cent - PHOTO: REUTERS
application/pdf iCONSingaporeans on the sidelines
[SINGAPORE] Private home purchases fell across the board in the first three months of this year to just over 2,000 units - the first time in more than five years that the number has dropped below 3,000 homes. However, foreigners' share of transactions edged up because of a sharper pullback by Singaporean buyers.
Singaporeans' share - at 70 per cent - is at its lowest since the introduction of the additional buyer's stamp duty (ABSD) in Q4 2011. In absolute terms, purchases by permanent residents (PRs) and foreign buyers were also at their lowest levels since the Q1 2009 market trough during the global financial crisis.
Based on DTZ's caveats analysis of URA Realis data as at April 15, Singaporean buyers accounted for 70 per cent of the 2,076 private homes that changed hands in Q1 this year, down from the 73 per cent share in both Q4 and Q1 last year.
PRs saw their share increase to a record 19 per cent - the highest level since Q1 1995, the earliest date that the URA Realis caveats database goes back to - from 16 per cent in Q4 2013 and 17 per cent in Q1 2013.
Market watchers linked the rise to the rule change in late-August 2013 requiring new PRs to wait three years before they can buy an HDB resale flat, prompting those who need immediate accommodation to turn to the private housing market.
Foreigners' share too has been creeping back up, touching 10 per cent for the first quarter. Although this is still low compared to the pre-ABSD proportion of 19 per cent, this was higher than the 9 per cent in Q4 2013.
DTZ South-east Asia chief operating officer Ong Choon Fah said that given the high home ownership rate among Singaporeans, "there is no real push factor for them to buy right now".
"They can afford to time the market. With signs now that the market is softening, more Singaporeans are taking a wait-and-see attitude."
Lee Lay Keng, DTZ's regional head (SEA) research, noted that the combination of the ABSD measures and last June's total debt servicing ratio (TDSR) framework had led to a sharper pullback in buying activity by Singaporeans in the first quarter amid expectations that prices could fall further given that the government has said it is not yet time to remove any cooling measures.
Despite the slowly rising share of foreign buying, market watchers are not expecting the authorities to come up with fresh cooling measures given the weaker property market sentiment.
Ms Lee said while the 42 and 47 per cent quarter-on-quarter declines in Q1 purchases by PRs and foreigners respectively were smaller than the 54 per cent slide in Singaporean purchases, the 401 units and 203 units that PRs and foreigners acquired here in January-March were at their lowest levels since Q1 2009. In that quarter, the figures were 325 and 175 units respectively.
The 1,453 private homes that Singaporeans bought in Q1 this year was the lowest since the 1,402 units in Q4 2008.
For all three groups, the number of units bought in Q1 was also down significantly from the year-ago period. In Q1 2013, Singaporeans, PRs and foreigners snapped up 4,494, 1,029 and 622 units respectively.
Giving a breakdown of the combined PR and foreign buying pool by nationalities, DTZ said that mainland Chinese, Malaysians, Indonesians and Indians continued to be the top four groups. Together, they accounted for 81 per cent of all private home purchases by non-Singaporean buyers, similar to Q4 2013.
Purchases by all four nationalities saw quarter-on-quarter declines, with Indonesians posting the biggest drop of 52 per cent to only 72 units in Q1. This was the first time since Q1 2009 that their purchases dipped below 100 units.
In all, 2,076 private homes were transacted in Q1, nearly half the 4,312 units in the previous quarter and one-third the Q1 2013 volume of 6,175 homes. The latest figure marks the first time the number has slipped below 3,000 units since Q4 2008, when 1,787 private home changed hands.
Century 21 Singapore CEO Ku Swee Yong is cautious about the outlook for private residential transactions for the rest of the year. "The general mood among real estate investors in most markets is just not there. For Singapore, I'm cautious till at least end-2014. If we see another three to four quarters of subdued transaction volumes and price declines, the Singapore authorities may lift some of the cooling measures. That could bring back buyers."

TDSR to stay. Without debt, property difficult to inflate.

I read this article on BT front page this morning as well, I must say it was phrase it in bold "Foreginer's share of home purchase creeping up". If you didnt finish the entire article, I suspect people might have the misconecption that property prices are bottoming out..

The fact that new SKM plated cars are on the street and new properties are transacted represents a wealthy lot of cash rich people (foreigners especially) are in SG.

Some of my friends who came from HK 20 years ago are telling me Singapore is like 1998 of hong kong.. Everything just surge. properties, cars, medical.. etc. Whether we evolve into Hong kong today remains a ?. But hey HK is back by powerhouse China! just because some developers are beginning to reprice their stockpile, it begin to look attractive.

I am afraid afterall, its just a falling knife.