Release Of 3rd Quarter 2007 Real Estate Statistics

Source : Urban Redevelopment Authority (URA) News Releases, 26 October 2007

The Urban Redevelopment Authority (URA) released today the real estate statistics for the 3rd Quarter 2007.

SUMMARY

Prices of private residential, office, shop and industrial properties continued to increase, by 8.3%, 8.1%, 3.0% and 3.2% respectively in the 3rd Quarter 2007, bringing the overall increase from end-2006 to the end of 3rd Quarter 2007 to 22.9%, 22.7%, 9.5% and 15.8% respectively.

Rentals of private residential, office, shop and industrial properties increased by 11.4%, 14.8%, 8.1% and 8.7% respectively in the 3rd Quarter 2007, bringing the overall increase from end-2006 to the end of 3rd Quarter 2007 to 32.2%, 40.7%, 17.5% and 22.4% respectively.

While demand for properties have generally increased, more supply is in the pipeline. For example, as at 3rd Quarter 2007, there were about 65,400 private residential units in the pipeline, comprising the supply from projects that are already under construction and those that have been granted planning approval but are not under construction yet. This was a 16.4% increase over the potential supply of about 56,200 units as at 2nd Quarter 2007. For office space, 1.4 million sq m Gross Floor Area (GFA) of office space can be potentially realized from various Government and private land sources. Of these, about 44,500 private residential units and 0.61 million sq m GFA of office space are expected to be completed between 4th Quarter 2007 and 2010.

PRIVATE RESIDENTIAL PROPERTIES

Prices

Overall prices of private residential properties rose 8.3% in the 3rd Quarter 2007, the same rate of increase as in the previous quarter (see Annexes A-1 and B-1 & B-2). This followed an increase of 13.5% in the first half 2007. From end-2006 to the end of 3rd Quarter 2007, the overall prices of private residential properties have thus increased by 22.9%.

Prices of non-landed properties rose 8.3% in the 3rd Quarter 2007, compared with the 8.4% increase in the previous quarter. Prices of apartments rose 8.3% while those of condominiums rose 8.4%.

Prices of non-landed properties in Core Central Region1 (CCR) rose 8.3% in the 3rd Quarter 2007, while prices of non-landed properties in Rest of Central Region2 (RCR) and Outside Central Region (OCR) both rose by 7.9% (see Annex A-2).

Prices of landed properties rose 7.5% in the 3rd Quarter 2007, compared with the 7.1% increase in the previous quarter. Prices of detached, semi-detached and terrace houses rose 7.7%, 6.2% and 8.1% respectively.

The prices of private residential properties are not uniform and vary from project to project. Home-buyers can view the data on individual uncompleted private residential projects at the following url: http://www.ura.gov.sg/realEstateWeb/Price.jsp. From the database, it can be seen that there are a number of uncompleted private residential projects in the suburban areas with prices at a more affordable level. There are also a number of projects with a significant number of units that have not been sold yet.

Besides the data on the sale of uncompleted units direct from developers, home-buyers can also access information on all private residential property transactions on URA’s website at the following url: http://www.ura.gov.sg/realEstateWeb/Transaction.jsp. This database, which is based on caveats lodged with the Singapore Land Authority (SLA), contains comprehensive information on the prices and floor areas of the units.

Rentals

Rentals of private residential properties3 rose 11.4% in the 3rd Quarter 2007, compared with the 10.4% increase in the previous quarter (see Annex A-3). From end-2006 to the end of 3rd Quarter 2007, the overall rentals of private residential properties have increased by 32.2%. Rentals of non-landed properties in CCR rose 12.2% in the 3rd Quarter 2007. Rentals of non-landed properties in RCR and OCR rose 11.9% and 11.8% respectively (see Annexes A-3 & A-4).

In addition, URA also released data on the 25th percentile, median and 75th percentile rentals for individual private residential projects for 3rd Quarter 20074 . This data would help the public make better informed decisions related to the renting of private housing. The data on the rentals of individual private residential projects is available in URA’s website at the following url: http://www.ura.gov.sg/realEstateWeb/rental.jsp.

Supply in the Pipeline

As at the end of 3rd Quarter 2007, there was a total supply of 65,406 uncompleted units of private housing from projects in the pipeline5 , about 16.4% higher than the 56,182 units as at the end of the previous quarter (see Annex F). Of these 65,406 units, 38,013 units were still unsold. These comprised 1,897 units that had been launched for sale by developers and 6,546 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 29,570 units with planning approvals did not have the pre-requisite conditions for sale. However, the pre-requisite approvals for sale, ie sale license from the Controller of Housing and Building Plan approval from the Building and Construction Authority (BCA) could be obtained quite quickly and these units could be made available for sale quite soon, if the developers choose to do so6 (see Annex C-1).

Of the 65,406 units, about 44,484 units are expected to be completed between the 4th Quarter of 2007 and 20107 . Construction has commenced for almost all the units scheduled for completion up to 2008. About 48% of the units that are expected to be completed in 2009 and 2010 are already under construction, while the remaining units not under construction yet can be completed as scheduled8. Details of the supply in the pipeline in the 3 locations are given in Annex C-2.

In addition, more supply will also come from the sites made available by the Government in the 2H2007 Government Land Sales (GLS) Programme, which can yield about 8,000 new units. When sold, the supply from these sites can be made available for sale within the next one year or so. The Government will also make additional supply available in the 1H2008 GLS Programme if necessary.

Apart from the additional supply from GLS sites, there will also be additional supply from new private residential developments on private land which will be coming in for planning approval, including those on sites where the existing developments have been sold en-bloc. This will further increase the number of units that can be made available for sale in the next few years.

Launches and Take-up

A total of 3,709 uncompleted private residential units were launched for sale by developers in the 3rd Quarter 2007, compared with the 4,362 units launched in the 2nd Quarter 2007. Of the 3,709 uncompleted units launched in the quarter, 1,360 units were in CCR, 1,148 units were in RCR, and 1,201 units were in OCR (see Annex D-1). Major residential projects launched in the quarter included The Parc Condominium at West Coast Walk (659 units), The Soleil @ Sinaran at Sinaran Drive (417 units) and The Rochester at Rochester Park (366 units).

During the 3rd Quarter 2007, 3,367 uncompleted private residential units were sold by developers, compared with the 4,820 units sold in the 2nd Quarter 2007. Of the 3,367 uncompleted units sold in the quarter, 1,123 units were in CCR, 975 units were in RCR, and 1,269 units were in OCR (see Annex D-2). Developers also sold 83 completed private residential units in the 3rd Quarter 2007.

Sub-sales

During the 3rd Quarter 2007, the number of sub-sales fell across the board for CCR, RCR and OCR (see Annex E). The total number of sub-sales fell to 1,163 in 3rd Quarter 2007, compared to 1,791 sub-sales in the previous quarter. In percentage terms, however, sub-sales accounted for 12.7% of all sale transactions in the 3rd Quarter 2007, compared to 12.1% in the 2nd Quarter 2007. The number of sub-sales in CCR in the 3rd Quarter 2007 accounted for 21.6% of all the property sale transactions in this area in the quarter, compared to 24.1% in the previous quarter. The percentage of sub-sales in the 3rd Quarter 2007 for RCR, at 14.0% and OCR, at 5.5% were slightly higher than the corresponding percentages of 12.2% and 4.1% in the previous quarter, though the level was still relatively low in OCR.

Stock and Vacancy

A total of 2,229 private residential units were completed (granted TOP) in the 3rd Quarter 2007. Major residential projects completed in the quarter were Icon at Gopeng Street (646 units), 8 @ Mount Sophia at Mount Sophia (313 units) and The Lakeshore at Jurong West Street 41 (280 units of the total 848 units).

The vacancy rate of completed private residential units was 5.4% as at the end of 3rd Quarter 2007, compared with 4.9% as at the end of the previous quarter (see Annex F).

Executive Condominiums

As at the end of 3rd Quarter 2007, there were 444 units of Executive Condominiums (EC) in the pipeline, all of which were under construction (see Annex G-2). All the 444 units had been issued with sale licenses and building plan approvals (i.e. pre-requisites for sale). As at the end of the quarter, 398 units had been launched for sale, of which 340 units had been sold.

The total stock of completed EC units remained unchanged at 9,986 units as at the end of 3rd Quarter 2007. As at the end of 3rd Quarter 2007, the vacancy rate was 0.8%, compared with the vacancy rate of 1.3% as at the end of the previous quarter.

OFFICE SPACE

Rentals

Rentals for office space in Singapore increased by 14.8% in the 3rd Quarter 2007, compared with the 11.0% in the 2nd Quarter 2007 (see Annex A-3). From end-2006 to the end of 3rd Quarter 2007, the rentals for office space have increased by 40.7%.

The median rental for “Category 1”9 office space was S$10.95 per square foot per month (psf pm) in the 3rd Quarter 2007, compared to the median rental of S$9.50 psf pm in the 2nd Quarter 2007. In comparison, the median rental for “Category 2”10 office space was S$5.14 psf pm in the 3rd Quarter 2007, compared to the S$4.48 psf pm in the 2nd Quarter 2007 (see Annex A-5). As shown, the rentals for “Category 2” office space were much lower than “Category 1” office space. As “Category 2” office space accounts for about 80% of all office space in Singapore, the rental for such space is more reflective of the typical rental paid by office tenants in Singapore. These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases have commenced in the 3rd Quarter 2007.

The median rentals for “Category 1” and “Category 2” office space based on rental contracts signed in the 3rd Quarter 2007 were S$11.89 and S$5.29 psf pm respectively (see Annex A-5). These statistics were compiled based on IRAS’ records of rental contracts which were signed in the reference quarter, regardless of whether or not the leases commenced in the reference quarter11.

Prices

Prices of office space rose 8.1% in the 3rd Quarter 2007, compared with the 8.9% increase in the previous quarter (see Annex A-1). From end-2006 to the end of 3rd Quarter 2007, the prices of office space have increased by 22.7%.


Supply in the Pipeline

As at the end of the 3rd Quarter 2007, there was a total supply of 612,000 sq m GFA of office space from projects in the pipeline12 , from Government and private land sources which were expected to be completed between the 4th Quarter 2007 and 2010. This includes the office space from the following new projects which were granted planning approval for development in the 3rd Quarter 2007:

a) Redevelopment of former Robinson Towers and former International Factors Building at Robinson Road (24,000 sq m13)
b) Office development at Fusionopolis Phase 2A at One North Gateway (14,900 sq m)

More supply will also come from the GLS sites which were recently awarded or launched for sale by the Government. In September 2007, URA awarded the tender for a White site at Marina View (Land Parcel A) to MGP Berth Private Limited, a unit of Macquarie Global Property Advisors. This site can yield about 130,000 sq m GFA of office space which can be completed by 2010 or 2011. The tender for a second site at Marina View (Land Parcel B) which can generate an additional supply of about 80,000 sq m of office space will close in November 2007. URA has in recent months also awarded the tender for three other sites, two at Anson Road and one at Beach Road, which together can generate a total supply of about 130,000 sq m of office space.

Apart from sites in the GLS Programme, the Government has also awarded the first transitional office site at Scotts Road, which can be built by the successful tenderer quickly in about a year and can generate about 16,000 sq m of office space. The tender for a second transitional office site at Tampines Concourse, which can potentially yield an additional 12,000 sq m of office space will close in November 2007. The Government will release more of such sites for tender in the coming months. More details will be announced to the public in due course. In addition, the Government has made available several vacant State properties for office use. These properties can be retrofitted and be made ready for occupation quickly.

In all, the total amount of office space, from Government and private land sources that can potentially be realised, is about 1.4 million sq m. The Government will make available new sites that can generate additional supply of office space in the 1H2008 GLS Programme. Details of the 1H2008 GLS Programme will be announced in end-2007.

Apart from office space, as at the end of the 3rd Quarter 2007, there was a total supply of 377,000 sq m of business park space from projects in the pipeline14 from Government and private land sources which were expected to be completed between the 4th Quarter 2007 and 2010. This includes 100,100 sq m of business park space from Fusionopolis Phase 2A at One North Gateway and a business park development at Science Park Road which were granted planning approval for development in the 3rd Quarter 2007. In addition, JTC is in the process of allocating a number of other business park sites, which will provide another 120,000 sq m of business park space. Business park space can meet the office needs of some firms, e.g. backroom operations of companies.

Stock and Vacancy

The amount of occupied office space increased by 60,000 sq m (nett) in the 3rd Quarter 2007, higher than the increase of 39,000 sq m in the 2nd Quarter 2007. A total of 10,400 sq m of office space were completed (granted TOP) in the 3rd Quarter 2007.

The island-wide vacancy rate of office space was 7.3% as at the end of 3rd Quarter 2007, compared with 8.0% as at the end of 2nd Quarter 2007. The vacancy rate for “Category 1” office space as at the end of 3rd Quarter 2007 was 2.8%, compared to the 5.0% as at the end of 2nd Quarter 2007. The vacancy rate for “Category 2” office space as at the end of 3rd Quarter 2007 was 8.4%, compared to the 8.7% as at the end of 2nd Quarter 2007 (see Annex A-5).


SHOP SPACE

Rentals

The overall rentals for shop space in Singapore increased by 8.1% in the 3rd Quarter 2007, compared with the 7.1% increase in the 2nd Quarter 2007. From end-2006 to the end of 3rd Quarter 2007, the overall rentals for shop space have increased by 17.5%. The median rental for shop space in the Orchard Planning Area (Orchard), Rest of City Area (RCA)15 and Outside City Area (OCA) were S$10.36, S$6.47 and S$5.36 psf pm respectively in the 3rd Quarter 2007 (see Annex A-5). These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases commenced in the 3rd Quarter 2007.

The median rentals for shop space in Orchard, RCA and OCA based on all rental contracts signed in the 3rd Quarter 2007, regardless of whether or not the leases commenced in the quarter, were S$10.25, S$6.62 and S$5.35 psf pm respectively (see Annex A-5).

Prices

Prices of shop space rose 3.0% in the 3rd Quarter 2007, compared with the 4.6% increase in the previous quarter (see Annex A-1). From end-2006 to the end of 3rd Quarter 2007, the prices of shop space have increased by 9.5%.

Supply in the Pipeline

As at the end of the 3rd Quarter 2007, there was a total supply of 520,000 sq m GFA of shop space from projects in the pipeline16, from Government and private land sources, which were expected to be completed between the 4th Quarter of 2007 and 2010. This includes the shop space from the following new projects which were granted planning approval for development in the 3rd Quarter 2007:

a) Redevelopment of the Hotel Phoenix, Specialists’ Shopping Centre and Orchard Emerald at Orchard Road (29,200 sq m)
b) Redevelopment of Sembawang Shopping Centre at Sembawang Road (8,700 sq m)

Stock and Vacancy

The amount of occupied shop space decreased by 12,000 sq m (nett) in the 3rd Quarter 2007, compared with an increase of 7,000 sq m in the 2nd Quarter 2007. A total of 27,700 sq m of shop space were completed (granted TOP) in the 3rd Quarter 2007.

The vacancy rate of shop space was 7.7% as at the end of 3rd Quarter 2007, compared with 7.2% as at the end of 2nd Quarter 2007. The vacancy rates for shop space in Orchard, RCA and OCA as at the end of 3rd Quarter 2007 were 3.6%, 8.3% and 8.1% respectively. In comparison, the vacancy rates for shop space in Orchard, RCA and OCA as at the end of 2nd Quarter 2007 were 4.6%, 8.7% and 7.0% respectively (see Annex A-5).

INDUSTRIAL SPACE

Prices and Rentals

Prices of multiple-user factory space rose 3.1% in the 3rd Quarter 2007, compared with the 8.0% increase in the previous quarter (see Annex A-1). Rentals of multiple-user factory space increased by 10.7%, compared with the 6.1% increase in the previous quarter (see Annex A-3). From end-2006 to the end of 3rd Quarter 2007, the prices and rentals of multiple-user factory space have increased by 15.8% and 22.8% respectively.

Stock and Vacancy

The amount of occupied factory space increased by 373,000 sq m (nett) in the 3rd Quarter 2007, higher than the increase of 252,000 sq m in the 2nd Quarter 2007. A total of 221,600 sq m of factory space were completed (granted TOP) in the 3rd Quarter 2007.

The vacancy rate of factory space declined by 0.7 percentage point to 8.4% as at the end of 3rd Quarter 2007.


URA’s REAL ESTATE INFORMATION SERVICE

More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy position of the various properties can be found in the Real Estate Information System (REALIS), an online database of URA.

Subscribers of REALIS can obtain the information from the system after 12.30 pm today. More information on REALIS can be found at http://spring.ura.gov.sg/lad/ore/login/index.cfm. You can also contact the REALIS hotline at 6329 3456.

1 Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and Sentosa.

2 Rest of Central Region comprises the area within Central Region that is outside postal districts 9, 10, 11, Downtown Core Planning Area and Sentosa.

3 URA’s rental data for private residential properties are compiled based on IRAS’ records of rental contracts for such properties where leases commenced in the reference quarter.

4 The rental data released are for private residential projects where there were at least 10 rental transactions in the reference quarter.
5 Refers to uncompleted projects that have been granted planning approval (i.e. Provisional Permission or Written Permission).

6 Sale licenses could be obtained within 9 days and building plan approvals could be obtained within 7 days from the date of application for cases where clearances from various technical agencies are obtained and relevant documents are in order during formal submissions.

7 The expected completion dates of private residential projects in the pipeline are declared by the developers of these projects, and not estimated by URA.

8 Private residential projects can be completed within 18 months from the point when construction commences. Examples of projects that were completed within this timeframe include The Spectrum at Pasir Panjang Road and The Geranium at Mangis Road.

9 Refers to office space in buildings located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area. A map of Central Region showing the locations of Downtown Core and Orchard Planning Areas is available in URA’s website at: http://www.ura.gov.sg/ppd/mp2003/index.jsp?content=central®ion=central.

10 Refers to the remaining office space in Singapore which are not included in “Category 1”.

11 Tenancy agreements for office space are usually signed up to 3 months before lease commencement. The methodology and sample size may differ from those used by some property consultants. For example, URA only uses actual contracted rentals in the computation of the statistics, whereas some property consultants use estimates of achievable rents in addition to actual contracted rentals in the computation of their statistics.

12 Refers to projects with planning approvals (i.e. Provisional Permission, Written Permission).

13 This is the total office GFA that will be built on the amalgamated sites of the Robinson Towers and International Factors Building.

14 Refers to projects with planning approvals (i.e. Provisional Permission, Written Permission).

15 A map of Central Region showing Orchard and RCA is available at http://spring.ura.gov.sg/lad/ore/login/map_city_area.pdf.

16 Refers to projects with planning approvals (i.e. Provisional Permission, Written Permission).

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For media enquiries, please contact:

Ms Serene Tng
Manager, Public Relations
DID: 63293224
Email: serene_tng@ura.gov.sg