Australia Property

[Boon]

The brave ones are still building more apartments in Melbourne..............................
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S P Setia hungry for more developments in Australia
Author: moneyKing   |   Publish Date: 13 Jun 2017, 7:42 PM

MELBOURNE (June 13): S P Setia, which is preparing to launch its latest two projects in Melbourne, Australia this year, is on the lookout for more land Down Under.

When asked if S P Setia Bhd is looking to acquire more land in Australia, S P Setia president and CEO Datuk Khor Chap Jen replied, “yes, definitely!”

“Australia is one of the areas that we would like to expand and in Melbourne, we have five projects at the moment. And we are definitely looking for more in Melbourne,” he told reporters during a press conference following a signing ceremony between the developer and Shangri-La Hotels and Resorts which has been appointed the hotel operator for S P Setia’s mixed development on Exhibition Street, Melbourne.

“We will also be looking for [more development sites] in Sydney but we have not found a suitable site so far,” he said.
S P Setia Bhd is looking to launch the Exhibition Street development by the end of this month.

Located on a 44,562 sq ft plot at 308 Exhibition Street in the upper east end of Melbourne’s central business district (CBD), the two-tower mixed development overlooking the city’s UNESCO World Heritage-listed Carlton Gardens is designed by Cox Architects and Fender Katsalidis.

The development is scheduled to be completed in 2022. One tower will house the five-star Shangri-La Hotel, Melbourne with 500 guest rooms and three levels of amenities, including a sky lobby, restaurants, spa, fitness centre, swimming pool and ballroom.

The second tower will have 345 luxury apartment units as well as office space. A sky bridge will connect both towers, while the retail space will occupy the lower levels of the development.

S P Setia Melbourne CEO Choong Ka Wai said the built-ups of the apartments will range from 50 sq m (538 sq ft) to 660 sq m (7,104 sq ft) while prices will start from A$550,000 (RM1.77 million).

He said the residential component will have a gross development value of about A$475 million.

“Upon completion, Shangri-La will offer about 1,000 job opportunities here in Melbourne. Not only that, the partnership with Shangri-La will also bring in tourism dollars to Melbourne and Victoria,” Choong told reporters after the signing ceremony, adding that S P Setia will be calling for construction tender in August this year.

During his speech at the signing event,  S P Setia chairman Tan Sri Wan Mohd Zahid Mohd Noordin said another of the developer’s latest project in Melbourne, The Marque, a mixed development on High Street Prahran is set to be officially launched this November. The project consists of 47 apartment units and has a gross development value of about A$38 million.
Other projects by S P Setia in Melbourne include Fulton Lane, Parque Melbourne and Maison Carnegie. Fulton Lane and Parque Melbourne have been completed and handed over while Maison Carnegie was launched last August, comprising 48 apartment units with prices from A$556,200. The project has achieved a take-up rate of about 70% thus far.

On its other overseas projects, Khor said its Toh Tuck Road site in Singapore will be launched in early 2018. S P Setia has acquired the 4.6-acre site for S$265 million (RM835.86 million) in April 2017 and the site will house 327-apartments in a 5-storey condominium block.

http://www.malaysiastock.biz/Blog/BlogAr...x?tid=8724
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[Boon]

Residential Commentary – Melbourne Apartment Market
April 2017
By JLL
 
http://www.jll.com.au/australia/en-au/Re...202017.pdf
 
Outlook
 
Apartment price growth will remain limited over the next 18-months as Melbourne absorbs the large additions to stock coming onto the market this year. It is likely that a number of projects that are pre-construction will not proceed largely due to  further measures placed on investor purchasing during the quarter.
 
Developers will continue to struggle to achieve pre-sale targets as investors, the largest group of apartment purchasers in Melbourne, are hindered by regulations and financial constraints. The removal of stamp duty concessions and limits on interest-only lending are likely to deter apartment investors. While development funds have been set up by alternative lenders, the size of these funds are also unlikely to account for the amount and scale of projects in Inner Melbourne.
 
Boutique projects or those which emphasis apartment size and occupier amenity are still likely to proceed to construction. With investors being the main target of regulatory changes, developers will further target owner-occupiers.
 
Despite hindrances to investors, housing affordability remains a key issue in Melbourne. Over 100,000 residents are anticipated to be added to Victoria’s population each year to 2031 with the majority expected to reside in Melbourne. Without significant public transport infrastructure that connects the ‘sprawling suburbs’ to employment, demand for inner-city housing and apartments will regain momentum in the medium term.
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[Boon]

Residential Commentary – Sydney Apartment Market
April 2017
By JLL
http://www.jll.com.au/australia/en-au/Re...202017.pdf

Outlook
The risk factors for the Sydney market still exist in the form of select supply hotspots, tighter investor lending and construction finance regulations, plus new capital controls in China. Yet in 1Q17 we saw some positive signs with prices continuing to increase, strong rent growth and a high number of projects move from marketing to construction.

While there is a substantial mooted supply pipeline, the quantum reaching construction will be self-regulated by the market, particularly in the context of ongoing council amalgamations which can lead to delays in the approval process.

Although we expect price growth and demand to continue to moderate, many positive factors support the Sydney apartment market. Population growth, a robust economy and a shift toward apartment living (which tends to more affordable) should facilitate a gradual slowdown in the market.

A tight rental market is supportive of growth, particularly as population growth continues. Therefore there is still sufficient capacity in the market for the stock expected to complete in 2017 to be absorbed. The supply/demand balance is more likely to be tested in the back end of the cycle towards 2019-21. 
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[BlueKelah]

Have a great weekend!

http://www.theaustralian.com.au/business...fb02651aec
Investors turn from apartments to houses and renovations
The Australian 12:00AM June 17, 2017
[The trend comes amid concerns about a glut of investor-grade apartments, particularly in Melbourne and Brisbane. Even as population growth has outpaced housing supply and put upward pressure on prices, many new apartments are too small to meet demands of couples and families.

Unit completions are likely to reach a peak this year in Victoria and next year in NSW, according to BIS Oxford Economics research, with the supply increase making it more difficult for landlords to find tenants.

Apartment prices fell more sharply than for houses last month, on aggregate data from the five largest capital cities compiled by CoreLogic, as the five-year housing bull run showed signs of slowing.

Unit values in Sydney dropped 2.7 per cent in May, compared to a 1 per cent fall for houses, while Melbourne units fell 3.8 per cent and houses lost 1.5 per cent.]

https://www.corelogic.com.au/research/mo...dices.html

[Boon]

Rush to launch Melbourne projects
By Cecilia Chow & Michael Ng / The Edge Property Singapore | May 30, 2017 
http://news.theedgeproperty.com.my/conte...e-projects

Malaysians get first dibs on S P Setia’s Sapphire By The Gardens
Natalie Khoo
TheEdgeProperty.com
June 16, 2017
http://www.theedgemarkets.com/article/ma...re-gardens
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[specuvestor]

Just saying that this is not the same SP Setia of the past... the old team is now at listed Eco World

The brave ones are still building more apartments in Melbourne..............................
______________________________________________________________________________________________________________________

S P Setia hungry for more developments in Australia
Author: moneyKing   |   Publish Date: 13 Jun 2017, 7:42 PM

MELBOURNE (June 13): S P Setia, which is preparing to launch its latest two projects in Melbourne, Australia this year, is on the lookout for more land Down Under.

When asked if S P Setia Bhd is looking to acquire more land in Australia, S P Setia president and CEO Datuk Khor Chap Jen replied, “yes, definitely!”

“Australia is one of the areas that we would like to expand and in Melbourne, we have five projects at the moment. And we are definitely looking for more in Melbourne,” he told reporters during a press conference following a signing ceremony between the developer and Shangri-La Hotels and Resorts which has been appointed the hotel operator for S P Setia’s mixed development on Exhibition Street, Melbourne.

“We will also be looking for [more development sites] in Sydney but we have not found a suitable site so far,” he said.
S P Setia Bhd is looking to launch the Exhibition Street development by the end of this month.

Located on a 44,562 sq ft plot at 308 Exhibition Street in the upper east end of Melbourne’s central business district (CBD), the two-tower mixed development overlooking the city’s UNESCO World Heritage-listed Carlton Gardens is designed by Cox Architects and Fender Katsalidis.

The development is scheduled to be completed in 2022. One tower will house the five-star Shangri-La Hotel, Melbourne with 500 guest rooms and three levels of amenities, including a sky lobby, restaurants, spa, fitness centre, swimming pool and ballroom.

The second tower will have 345 luxury apartment units as well as office space. A sky bridge will connect both towers, while the retail space will occupy the lower levels of the development.

S P Setia Melbourne CEO Choong Ka Wai said the built-ups of the apartments will range from 50 sq m (538 sq ft) to 660 sq m (7,104 sq ft) while prices will start from A$550,000 (RM1.77 million).

He said the residential component will have a gross development value of about A$475 million.

“Upon completion, Shangri-La will offer about 1,000 job opportunities here in Melbourne. Not only that, the partnership with Shangri-La will also bring in tourism dollars to Melbourne and Victoria,” Choong told reporters after the signing ceremony, adding that S P Setia will be calling for construction tender in August this year.

During his speech at the signing event,  S P Setia chairman Tan Sri Wan Mohd Zahid Mohd Noordin said another of the developer’s latest project in Melbourne, The Marque, a mixed development on High Street Prahran is set to be officially launched this November. The project consists of 47 apartment units and has a gross development value of about A$38 million.
Other projects by S P Setia in Melbourne include Fulton Lane, Parque Melbourne and Maison Carnegie. Fulton Lane and Parque Melbourne have been completed and handed over while Maison Carnegie was launched last August, comprising 48 apartment units with prices from A$556,200. The project has achieved a take-up rate of about 70% thus far.

On its other overseas projects, Khor said its Toh Tuck Road site in Singapore will be launched in early 2018. S P Setia has acquired the 4.6-acre site for S$265 million (RM835.86 million) in April 2017 and the site will house 327-apartments in a 5-storey condominium block.

http://www.malaysiastock.biz/Blog/BlogAr...x?tid=8724
______________________________________________________________________________________________________________________

[Boon]

'Demographic tsunami' will keep Sydney, Melbourne property prices high
JUNE 30 2017
Michael Pascoe
http://www.smh.com.au/business/the-econo...x1onj.html
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[Boon]

Capital city house prices rise 1.8 per cent in June
JULY 3, 2017
by Frank Chung
http://www.news.com.au/finance/economy/a...93e022e3d2
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Morrison: national property market in for soft landing, not a crash
July 4, 2017
TURI CONDON
Property Editor
Sydney
ELIZABETH REDMAN
Property reporter
Melbourne

http://www.theaustralian.com.au/business...a75749de54
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Fears of a housing bubble in Australia are overblown, says HSBC economist
Emily Cadman
07 July 2017
http://www.smh.com.au/business/property/...x5uba.html
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[BlueKelah]

Sydney's property market FINALLY comes off the boil: Sellers are knocking up to $550,000 off their asking prices to get a sale - so is now the time to buy?

http://www.dailymail.co.uk/news/article-...rices.html

• House prices in Sydney appear to have taken a dip as owners discount prices
  
• Up to $550K was cut from an asking price as vendors take steep measures to sell
  
• In the inner west's Russell Lea and Drummoyne sellers slashed 15-20 per cent off
  
• The highest decreases were recorded in Vaucluse with an average of 27 per cent
  

Read more: http://www.dailymail.co.uk/news/article-5002824/Sydney-house-prices-dip-sellers-cut-prices.html#ixzz4wr5gnAic
Follow us: @MailOnline on Twitter | DailyMail on Facebook

[Bibi]

The article is talking about high end type properties worth $3mil. Our very own sentosa cove also dropped by 30 to 35% few months or a year ago. It didnt crash. It stablized and went up in recent months.