Property Market Sentiments

[opmi]

Prices can drop more offset the inflationary effects of ABDS/SSD la.
Jialat these salesmen tell one sided story.

[cfa]

Property developers want their business to be profit guaranteed.
Durain D24 or Mao Shan Wan.

[Porkbelly]

Prices can drop more offset the inflationary effects of ABDS/SSD la.
Jialat these salesmen tell one sided story.

Seldom do we hear developers griping about the measures.They have priced their products based on their costs and margins.

The gripings come frequently from property consultancies, sales agencies. They need the commissions which is a fixed percentage of sales. Not much room to manouver.

[corydorus]

Prices can drop more offset the inflationary effects of ABDS/SSD la.
Jialat these salesmen tell one sided story.

Seldom do we hear developers griping about the measures.They have priced their products based on their costs and margins.

The gripings come frequently from property consultancies, sales agencies. They need the commissions which is a fixed percentage of sales. Not much room to manouver.

This people "Black" also can say until "White". Since when ABDS/SSD can cause or key factor in inflation ...

[specuvestor]

wow that's either another armchair "economist", or A for creative effort

[greengiraffe]

http://www.businesstimes.com.sg/premium/...y-20140816

PUBLISHED AUGUST 16, 2014
Developers hard-pressed to price projects modestly

BYKALPANA RASHIWALA
kalpana@sph.com.sg @KalpanaBT

LATEST official statistics showed that developers' housing sales continued to languish last month, but the focus now is on the likely launches for the rest of the year and how much room developers have to price them attractively to get potential buyers into making a commitment - PHOTO: ST
application/pdf iconPossible launches for rest of the year
Singapore
LATEST official statistics showed that developers' housing sales continued to languish last month, but the focus now is on the likely launches for the rest of the year and how much room developers have to price them attractively to get potential buyers into making a commitment.
Many developers paid high prices for 99-year private housing sites at state tenders in the past couple of years as they sought to replenish land following strong home sales at the time.
"Those with a high breakeven cost but who need to launch a project are likely to adopt a "Star Buy" strategy for inferior stacks of units in the development to draw out initial take-up to drive confidence in the launch," a seasoned developer told BT yesterday.
"Developers who worked in a potential price drop in their land bids would be in a better position today to trim end-unit prices and encourage buyers to consider making a commitment amid the current soft market," said Chia Siew Chuin, director at Colliers International.
"But even those who paid high land prices and left with less room for price adjustment may be willing to lower their price expectations. This could enable them to clear some units and generate cash flow - rather than maintaining the status quo and doing nothing as market conditions deteriorate further."
There will be heightened competition for buyers as more property launches are expected by developers who had bought residential land after December 2011. These developers are required to complete the projects and sell all units within five years, otherwise they would have to pay a hefty additional buyer's stamp duty on the land price with interest, Ms Chia noted.
Even amid the weak July developers sales stats released yesterday by the Urban Redevelopment Authority (URA), evidence is surfacing of developers successfully drawing out buying demand through attractive prices, highlights SLP International executive director Nicholas Mak.
"For instance, Wheelock released The Panorama in Ang Mo Kio in January this year, posting a median price of S$1,343 psf for sales in that month. But since it reduced prices in May to the S$1,200-plus psf level (median price), this project has been among the top sellers every month," he said.
"This goes to show that developers can revive sales at existing launches with meaningful price cuts. What remains to be seen, however, is whether this will result in a price war, which could be triggered, for instance, if one player were to sharply cut prices relative to other projects in the vicinity."
URA's July data also revealed that the remaining 37 units at The Vermont on Cairnhill, which was completed last year, were sold at S$2,113 psf median price in July. This is 8.6 per cent below the S$2,313 psf median price, based on caveats data, for all previous sales in the project by its developer, said OrangeTee research head Christine Li.
"Vermont's brisk sales show many high-end buyers are on the sidelines waiting to enter the market once prices become attractive," she noted. "In the private housing market as a whole, a 10-12 per cent price cut is typically enough to draw buyers in droves."
Last month, developers sold 484 private homes excluding executive condos (ECs), just two more than the 482 units they moved in June. In July last year, the figure was also 482 units.
Developers also offloaded 51 EC units last month, compared with 49 in June and 112 in July 2013. The weak home sales mirrored their strategy of holding back on major launches.
There were only four new launches last month - of which three were in the city fringe.
The top seller was City Gate on Beach Road, with 89 units transacted at a median price of S$1,809 psf. Near Kitchener Road, the developer of The Citron Residences found buyers for 23 units at S$1,585 psf median price. In the West Coast, 11 units were sold at Bijou at S$1,969 psf.
In the first seven months, developers sold 4,893 private homes and 354 EC units. For the whole of last year, the figures were 14,948 private homes and 3,588 ECs.
For the rest of the year, predicts Ms Li, EC sales will gather momentum and probably overshadow sale of mass-market private condos. There has not been a single new EC project launch in nearly a year, which means pent-up demand can be expected to manifest for five expected EC launches by year-end.
Some market observers expect genuine buyers to increasingly head for the resale market to pick up a completed property, including units in newly completed projects.
"These buyers can pick up something in the spot market, and within a short period either move in or rent it out," noted Savills Singapore research head Alan Cheong.
"Of course, the advantage of buying at a new launch from a developer is that buyers can make progressive payments for their property purchase, based on the phase of the project's completion. And in the case of leasehold property, they get an almost fresh lease term on their investment."

[greengiraffe]

http://www.businesstimes.com.sg/premium/...s-20140819

PUBLISHED AUGUST 19, 2014
REACTIONS TO NATIONAL DAY RALLY
Jurong Lake area to be new draw for developers

Leisure elements, potential high-speed rail terminus to boost area's value
BYKALPANA RASHIWALA
kalpana@sph.com.sg @KalpanaBT

Developers are expected to take a keener interest in future state land tenders in Jurong Lake District - whether for residential, commercial or hotel projects - PHOTO: ST
application/pdf iconMORE GARDENS, WATERFRONT HOMES
[SINGAPORE] Developers are expected to take a keener interest in future state land tenders in Jurong Lake District - whether for residential, commercial or hotel projects.
The buzz created from efforts for greenery attractions in the area is expected to give a fillip to home values there.
Attention will be heightened further if a decision is made to house the future Kuala Lumpur-Singapore high-speed rail terminus in Jurong Gateway, said property consultants yesterday. They were giving their views on plans announced on Sunday night by Prime Minister Lee Hsien Loong to liven up Jurong Lake District.
"Going forward, the plans to realign Ayer Rajah Expressway, convert some of the old industrial estates to waterfront housing, etc, could greatly enhance the liveability of Jurong as it enjoys an image overhaul, thanks to all the leisure elements that the government will put in place," said Christine Li, research head at OrangeTee.
"Existing property owners can look forward to one of the most liveable housing estates in Singapore outside the central and fringe areas," she added.
CBRE' Singapore research head Desmond Sim too thought the changes will "remove the stigma of an industrial township that Jurong was originally planned for".
National Development Minister Khaw Boon Wan blogged yesterday: "Since 2008, Jurong has made steady progress to be our largest regional centre, outside of the city."
Jurong Lake Gardens, spanning over 70 hectares, will integrate the revitalised Jurong Lake Park (to be completed by 2017), as well as the Chinese and Japanese Gardens which are set to be spruced up, and not forgetting the new Science Centre, which will emerge next to the Chinese Garden MRT Station around 2020.
Giving her take on the announcements on residential property values, DTZ's regional head (SEA) research, Lee Lay Keng, said: "Even though the overall conditions in the residential property market remain tepid, the buzz created could provide a minor boost to existing projects and help support prices and transaction volumes in the area."
"In the longer term, the development of Jurong Lake Gardens will enhance the living environment for residents, similar to the Bishan-Ang Mo Kio Park, and increase interest in the area," she added.
The plans are expected to fuel developers' interest in a 99-year private housing site just above Jurong Lake - between The Lakeshore and Lakeville condos - that will be launched in December through the confirmed list of the Government Land Sales Programme. Said CBRE's Mr Sim: "While the number of bids is expected to be high..bid prices are expected to be dampened by current market sentiment and confidence."
Ms Li of OrangeTee expects development sites for residential, commercial as well as integrated uses (eg office, retail and residential elements) to whet developers' appetite - if they are released over the next year or two. "Hotel sites are also likely to be released once the terminus of the high-speed rail is confirmed," she added.
Mr Sim added that should the terminus be located in Jurong Gateway, it could further boost the currently nascent office market in the area, he added. "The inclusion of the high-speed rail terminus will be the final jigsaw piece to cement Jurong Regional Centre as a unique lakeside destination for business and leisure."
JLL's head of research, SE Asia, Chua Yang Liang, said the realignment of the AYE will generate the opportunity to develop "more lakefront homes for the masses". "Beyond the current slowdown in the residential market, the opportunity would be much sought after by developers in future...We can expect the regenerative efforts by the state to be capitalised into higher real estate values in the long term."

[koh_52]

This year hard time for those property investors.
- rental drop
- maintenance fee go up
If bank mortgage rate up, most of them will run road.
But strangely property price till to-date still holding only suffer marginal drop..

[Contrarian]

> But strangely property price till to-date still holding only suffer marginal drop

Sentosa The COAST sold at $3.8M for a 2777 sq ft... First owner from Vietnam bought it for $7M. He got 2 units... Bank or him cry.

Reflections Keppel Bay also fire sale.

Heard small developers with-hold commission to real estate agents... :-)

CDL is stuck with many luxury units.

FCL is in best shape...

[desmondxyz]

Hold first if you want to buy, more discount coming ... I won't be surprised if property developers sell their units at breakeven or even at loss when the price war starts.. Don forget they need to clear their units within 2 yrs after launch....or else they will be facing hefty penalty for extension. Remember SC Global?