Source : The Straits Times, July 30, 2009
NEW YORK: Home prices in major cities in the United States registered the first monthly gain in nearly three years, the latest sign that the housing market may have finally turned the corner.
The widely watched Case-Shiller home price index for May posted an increase of 0.5per cent, the first monthly rise since 2006, instead of a forecast 0.5per cent decline, though prices have tumbled more than 32per cent from their peak in the second quarter of 2006.
'This is much more important than an up day on the stock market. It may mean we have changed direction,' Yale University economist Robert Shiller, one of the developers of the index, told Reuters Television.
After seasonal adjustment, prices showed a 0.2per cent decline, but this was still an improvement in the recent trend, economists said.
It is 'a pretty significant indicator that we might be at or near a bottom', the other developer of the index, economist Karl Case, said in an interview.
After a plunge lasting three years, houses have finally become cheap enough to lure buyers. That, in turn, is stabilising prices, generating hope of a property market recovery.
Other recent signs of a turnaround were seen in new home sales data for last month which jumped 11per cent, the biggest monthly gain in eight years, the US Commerce Department said on Monday.
Existing home sales rose for the third straight month last month, the National Association of Realtors said last week, feeding optimism about the beleaguered housing sector.
Still, caution is warranted as long as the US unemployment rate and mortgage foreclosures keep rising, said professors Case and Shiller.
The index tracks home prices in 20 metropolitan areas. The nationwide index of house prices was still down 17per cent in May from the same month last year. But the rapid deterioration in prices has slowed since January.
However, home prices are still falling in many areas, with high unemployment and looming foreclosures likely to weigh down real estate for the foreseeable future. -REUTERS, LOS ANGELES TIMES
Friday, July 31, 2009
Mah Sounds Warning On Property Buzz
Source : The Straits Times, July 30, 2009
Government will take action if excessive speculation develops
THE Government will take 'whatever action necessary' to prevent excessive speculation in the property market, said National Development Minister Mah Bow Tan yesterday.
Mr Mah's note of caution comes amid a buying frenzy that has gripped the real estate sector in recent months.
He told the media on the sidelines of an industry event: 'I wouldn't say there is excessive speculation at the moment, but there is some element of speculation involved.
'Some of the practices and habits that you saw in the last property boom are beginning to come back, so I think we'll have to be careful.'
He also warned about a property bubble forming. 'Obviously it is not in our interest for such a bubble to form, because when it does, and bursts, which it inevitably must, then I think a lot of people will get hurt,' said the minister, adding that all parties concerned must ensure that such a bubble does not materialise.
'A little bit of speculation is inevitable in every market, but when it becomes excessive, then it is something that we should try to avoid.'
There are certainly signs of a red-hot market, including queues forming days before the launch of a new project.
Suburban condo Optima, next to the Tanah Merah MRT, drew lines snaking outside the showflat on Monday, though the unit does not open until tomorrow.
Real estate agents were also in the queues with blank cheques from clients.
Buyers at Ang Mo Kio were equally keen to put their money down at the 329-unit Centro Residences, reportedly paying $1,150 per sq ft, a price level typically seen in central districts.
Mr Mah said the Government was monitoring the market but added that it was uncertain if the activity is due to pent-up demand or generated by buyers responding to lower prices or low interest rates.
'It is in all our interest that the market is a healthy, sustainable one,' he said.
Property veteran Nicholas Mak, former head of research at Knight Frank, agreed that the key is sustainability of demand: 'Although now it seems it's a bit too much and too fast, with buying volume growing at an unsustainable rate.'
Speculation is on the rise, with the number of subsales in the second quarter at 940 compared with 412 in the first quarter of this year, he noted.
Mr Mah yesterday called on buyers to do their homework: Research prices, study information on upcoming supply and check data from the Urban Redevelopment Authority's website. 'Don't commit right up to the hilt...think about what if interest rates rise in the future, would you still be able to afford it?' he said.
He emphasised that there was plenty of supply in the pipeline: Of 62,350 uncompleted units of private homes, about 38,482 units remain.
The minister also announced that the confirmed list of sites in the Government's land sales programme could be reinstated if supply is needed.
The Real Estate Developers Association of Singapore backed up Mr Mah's comments that a bubble should not form.
It pointed out last night that not all the property launches have been snapped up. Only a select few have been highly successful for various reasons. This could also be a result of pent-up demand.
Government will take action if excessive speculation develops
THE Government will take 'whatever action necessary' to prevent excessive speculation in the property market, said National Development Minister Mah Bow Tan yesterday.
Mr Mah's note of caution comes amid a buying frenzy that has gripped the real estate sector in recent months.
He told the media on the sidelines of an industry event: 'I wouldn't say there is excessive speculation at the moment, but there is some element of speculation involved.
'Some of the practices and habits that you saw in the last property boom are beginning to come back, so I think we'll have to be careful.'
He also warned about a property bubble forming. 'Obviously it is not in our interest for such a bubble to form, because when it does, and bursts, which it inevitably must, then I think a lot of people will get hurt,' said the minister, adding that all parties concerned must ensure that such a bubble does not materialise.
'A little bit of speculation is inevitable in every market, but when it becomes excessive, then it is something that we should try to avoid.'
There are certainly signs of a red-hot market, including queues forming days before the launch of a new project.
Suburban condo Optima, next to the Tanah Merah MRT, drew lines snaking outside the showflat on Monday, though the unit does not open until tomorrow.
Real estate agents were also in the queues with blank cheques from clients.
Buyers at Ang Mo Kio were equally keen to put their money down at the 329-unit Centro Residences, reportedly paying $1,150 per sq ft, a price level typically seen in central districts.
Mr Mah said the Government was monitoring the market but added that it was uncertain if the activity is due to pent-up demand or generated by buyers responding to lower prices or low interest rates.
'It is in all our interest that the market is a healthy, sustainable one,' he said.
Property veteran Nicholas Mak, former head of research at Knight Frank, agreed that the key is sustainability of demand: 'Although now it seems it's a bit too much and too fast, with buying volume growing at an unsustainable rate.'
Speculation is on the rise, with the number of subsales in the second quarter at 940 compared with 412 in the first quarter of this year, he noted.
Mr Mah yesterday called on buyers to do their homework: Research prices, study information on upcoming supply and check data from the Urban Redevelopment Authority's website. 'Don't commit right up to the hilt...think about what if interest rates rise in the future, would you still be able to afford it?' he said.
He emphasised that there was plenty of supply in the pipeline: Of 62,350 uncompleted units of private homes, about 38,482 units remain.
The minister also announced that the confirmed list of sites in the Government's land sales programme could be reinstated if supply is needed.
The Real Estate Developers Association of Singapore backed up Mr Mah's comments that a bubble should not form.
It pointed out last night that not all the property launches have been snapped up. Only a select few have been highly successful for various reasons. This could also be a result of pent-up demand.
Speculation Creeping Back Into Market: Mah
Source : The Business Times, July 30, 2009
Govt will act if housing market overheats; supply pipeline is strong
Speculation is trickling back into the property market and the government is watching the situation closely, National Development Minister Mah Bow Tan said yesterday.
The authorities will take action should the market overheat but home seekers should also be careful about making purchases, he underlined.
'I wouldn't say that there is excessive speculation at the moment but there is some element of speculation involved,' Mr Mah told the press after the topping-out ceremony for Tower One at Marina Bay Financial Centre (MBFC).
'Some of the practices and habits that you saw in the last property boom are beginning to come back.'
Queues have started forming outside some showflats and property agents are reportedly armed with blank cheques from clients.
Median prices have also gone up at some launches - by up to 7 per cent a month in a handful of cases. This has stemmed the fall in private home prices, with the Urban Redevelopment Authority's (URA) price index sliding 4.7 per cent in Q2 from a quarter ago - much less than the 14.1 per cent tumble it took in Q1.
The question, though, is why a buying wave is forming when economic waters remain tepid. The slowdown has moderated but a contraction is still on Singapore's books, Mr Mah said.
The official forecast now points to the economy shrinking 4-6 per cent this year.
It is therefore unclear if the buying momentum is sustainable, he said. 'I'm not so sure whether the demand is due to pent-up demand, or whether it is due to buyers responding to lower prices by developers or even to the current low interest rates.'
While it is premature to call it the start of a property bubble, the government is monitoring the market closely and will take 'whatever action is necessary', Mr Mah said.
He also urged home seekers to research the property market thoroughly and seek affordable units.
'Don't panic - because there is a lot of supply in the market.'
According to URA, there were 62,350 uncompleted private homes from projects in the pipeline at the end of Q2. Of these, 38,482 units were still unsold.
The government can also inject supply through the Government Land Sales (GLS) programme, Mr Mah said. It is considering whether it should reintroduce the confirmed list (suspended last October) for the first half of 2010.
Responding to Mr Mah's comments, the Real Estate Developers Association of Singapore (Redas) said that developers share a 'common desire to see a steady growth, for greater stability and sustainability in the property market'.
It also highlighted that not all property launches have been snapped up.
'Only a selected few launches have been highly successful for various reasons. This could also be a result of pent-up demand.'
Industry watchers saw Mr Mah's message as a signal against excess exuberance in the market. The move could have contributed to a fall among major property counters yesterday: City Developments lost 10 cents to close at $9.94, while CapitaLand shed six cents to $4.00.
Colliers International's research and advisory director Tay Huey Ying felt that there is 'genuine concern' about the sustainability of current demand. Some buying has been driven by accumulated wealth from the boom years and when the funds dry up, it will take strong economic fundamentals to generate new demand, she said.
But she also believes that the government will 'tread cautiously' when it comes to tempering market sentiment, because the pick-up has only begun and is fragile.
Developer sales of private homes started to recover in February - interest first poured into mass-market projects and gradually filtered into mid- and high-end ones.
Over the last month, for example, KOP Group sold 11 units at its luxury site The Hamilton Scotts, at prices ranging from $2,500 to $3,000 psf.
Across liquidity-flush Asia, several economists have flagged the risk of property bubbles forming. However, many do not believe that policymakers will aggressively tighten measures when economic recovery remains nascent.
Govt will act if housing market overheats; supply pipeline is strong
Speculation is trickling back into the property market and the government is watching the situation closely, National Development Minister Mah Bow Tan said yesterday.
The authorities will take action should the market overheat but home seekers should also be careful about making purchases, he underlined.
'I wouldn't say that there is excessive speculation at the moment but there is some element of speculation involved,' Mr Mah told the press after the topping-out ceremony for Tower One at Marina Bay Financial Centre (MBFC).
'Some of the practices and habits that you saw in the last property boom are beginning to come back.'
Queues have started forming outside some showflats and property agents are reportedly armed with blank cheques from clients.
Median prices have also gone up at some launches - by up to 7 per cent a month in a handful of cases. This has stemmed the fall in private home prices, with the Urban Redevelopment Authority's (URA) price index sliding 4.7 per cent in Q2 from a quarter ago - much less than the 14.1 per cent tumble it took in Q1.
The question, though, is why a buying wave is forming when economic waters remain tepid. The slowdown has moderated but a contraction is still on Singapore's books, Mr Mah said.
The official forecast now points to the economy shrinking 4-6 per cent this year.
It is therefore unclear if the buying momentum is sustainable, he said. 'I'm not so sure whether the demand is due to pent-up demand, or whether it is due to buyers responding to lower prices by developers or even to the current low interest rates.'
While it is premature to call it the start of a property bubble, the government is monitoring the market closely and will take 'whatever action is necessary', Mr Mah said.
He also urged home seekers to research the property market thoroughly and seek affordable units.
'Don't panic - because there is a lot of supply in the market.'
According to URA, there were 62,350 uncompleted private homes from projects in the pipeline at the end of Q2. Of these, 38,482 units were still unsold.
The government can also inject supply through the Government Land Sales (GLS) programme, Mr Mah said. It is considering whether it should reintroduce the confirmed list (suspended last October) for the first half of 2010.
Responding to Mr Mah's comments, the Real Estate Developers Association of Singapore (Redas) said that developers share a 'common desire to see a steady growth, for greater stability and sustainability in the property market'.
It also highlighted that not all property launches have been snapped up.
'Only a selected few launches have been highly successful for various reasons. This could also be a result of pent-up demand.'
Industry watchers saw Mr Mah's message as a signal against excess exuberance in the market. The move could have contributed to a fall among major property counters yesterday: City Developments lost 10 cents to close at $9.94, while CapitaLand shed six cents to $4.00.
Colliers International's research and advisory director Tay Huey Ying felt that there is 'genuine concern' about the sustainability of current demand. Some buying has been driven by accumulated wealth from the boom years and when the funds dry up, it will take strong economic fundamentals to generate new demand, she said.
But she also believes that the government will 'tread cautiously' when it comes to tempering market sentiment, because the pick-up has only begun and is fragile.
Developer sales of private homes started to recover in February - interest first poured into mass-market projects and gradually filtered into mid- and high-end ones.
Over the last month, for example, KOP Group sold 11 units at its luxury site The Hamilton Scotts, at prices ranging from $2,500 to $3,000 psf.
Across liquidity-flush Asia, several economists have flagged the risk of property bubbles forming. However, many do not believe that policymakers will aggressively tighten measures when economic recovery remains nascent.
Slide In US Housing Prices Slowing Down
Source : The Business Times, July 30, 2009
May's housing index the 4th consecutive month that price declines slowed
(NEW YORK) After a plunge lasting three years, houses have finally become cheap enough to lure buyers. That, in turn, is stabilising prices, generating hope that the real estate market is beginning to recover.
Hopes lifted: Some quarters believe the housing market has reached its bottom and the worst is over
Eight cities, including Chicago, Cleveland, Denver and San Francisco showed price increases in May, up from four in April and one in March, according to data released Tuesday. Two other cities, Charlotte, North Carolina, and New York, were flat.
For the first time since early 2007, a composite index of 20 major cities was virtually flat, instead of down.
'We've found the bottom,' said Mark Fleming, chief economist for First American CoreLogic, a data firm.
The release of the surprisingly strong Case-Shiller Price Index, compiled by Standard & Poor's, followed earlier reports that sales of existing homes rose last month for the third consecutive time, while beleaguered homebuilders saw sales of new homes jump in June by the largest amount in eight years.
All of these improvements are tentative, and come after a relentless decline that knocked more than half the value off houses in the worst-hit cities.
Some sceptics believe the market is merely pausing before it resumes falling. Even the most enthusiastic analysts acknowledge that rising unemployment, another leap in foreclosures, or a significant rise in interest rates could snuff out progress.
Still, hope is growing in some quarters that the worst has passed.
'Recession is over, economy is recovering - let's look forward and stop the backward-looking focus,' John E Silvia, the Wells Fargo chief economist, wrote on Tuesday in a research note.
Kirit Shah decided to look forward a few weeks ago. A retired forensic chemist for the New York Police Department, he closed on a house in Royal Palm Beach, Florida.
Mr Shah was not dissuaded when the salesman at K Hovanian Homes told him the five-bedroom place had been empty since it was finished three years ago. 'It was waiting for me,' said Mr Shah, 64. 'I'm on a lakefront. I never dreamed I would be on a lakefront. I'm within walking distance of a swimming pool.' But the thing he likes best is this: He paid US$260,000 for the five-bedroom house, half of what that model was fetching during the boom.
'An excellent deal,' he said. 'Plus I got a good rate on my mortgage, under 5 per cent.'
Turning markets are full of uncertainty. If Mr Shah was one reason why new home sales were up 11 per cent in June from May, it is unclear just how many others like him are out there.
Brad Hunter, chief economist for Metrostudy, a research firm, said the new home numbers appeared to illustrate less a return of buyers like Mr Shah and more a resurgence of investors and speculators.
Metrostudy's own data showed that the number of buyers during the second quarter who actually moved into their new house declined 2.6 per cent.
'Investors are turning right around and putting the houses on the market for sale or for rent,' Mr Hunter said. 'What appears to have been an absorption of excess inventory can be just a changing of ownership of that inventory.'
The good news in the Case-Shiller index, the most widely watched source of price information about the housing market, is equally provisionary. Tracking only large urban areas, the monthly index does not represent the country as a whole.
The Case-Shiller figures released on Tuesday showed that May prices were down 17.1 compared with May of the previous year. As bad as that may sound, it was the fourth consecutive month that price declines slowed - a step in the right direction, but perhaps not cause for widespread celebration.
More attention was focused on the news that, when May was compared with April, the price index covering 20 major cities showed a half-per cent gain. It was the first month-over-month increase in the 20-city index in 34 months.
'It is very possible that years from now we will say that April 2009 was the trough in home prices,' said Maureen Maitland, vice-president for index services at Standard & Poor's.
When the numbers were adjusted for seasonal factors, however, the usual way housing figures are presented, the slight gain disappeared and the 20-city index was essentially flat. Half of the cities showed continued declines.
One reason the market is perking up in some places, real estate agents say, is because of the encouragement offered by such measures as the first time buyer's tax credit of US$8,000.
All the more reason, said the National Association of Realtors, to not only extend the credit but expand it. The association is lobbying for the current credit, which expires in December, to be replaced with a US$15,000 credit for all buyers.
'This is a relatively low-cost way to keep the housing market moving forward,' said Paul Bishop, the association's managing director of research.
Another reason for the market's resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales.
In some troubled regions, agents say they cannot remember the last transaction that did not involve a bank disposing of a property.
These communities are not yet showing any improvement in prices.
Las Vegas was the worst-performing city in the May Case-Shiller index, falling 2.6 per cent. Prices have fallen there by a third in the last year.
'The mom and pop that work at the Hilton can now afford a home here again,' said Justin Pechonis, a Las Vegas real estate agent.
'Las Vegas is a great place to buy now.' But not from him. Sickened by seeing so many clients foreclosed, he is getting out of the business. He now drives a taxi.
The Obama administration has been seeking to stabilise the market in part by slowing the pace of foreclosures. Representatives from 25 leading mortgage servicers met administration officials on Tuesday and promised to pick up the pace of loan modifications. If that does not happen and there is another flood of foreclosures, Las Vegas may become the rule rather than the exception.
Andrew LePage, who analyses California and other markets for DataQuick, a research firm, said such a scenario is possible. 'The dark clouds are still there,' he said.
All this uncertainty breeds a hesitancy that seems to show up in nearly every sale, especially at the higher end of the market. When Margot and Pascal Lalonde decided in April to sell their two-bedroom condominium in the North End of Boston, they methodically quizzed six experienced agents about a good price.
List it for under US$500,000 unless you want to be here for months, said one agent. Two others said they should demand US$675,000. The other three were in between.
After 80 days on the market and two small price reductions, the condo is now under contract for US$550,000. The buyers examined the apartment six times. The Lalondes, who are moving to Short Hills, New Jersey, expect to be no less careful when they buy their new place. -- NYT
May's housing index the 4th consecutive month that price declines slowed
(NEW YORK) After a plunge lasting three years, houses have finally become cheap enough to lure buyers. That, in turn, is stabilising prices, generating hope that the real estate market is beginning to recover.
Hopes lifted: Some quarters believe the housing market has reached its bottom and the worst is overEight cities, including Chicago, Cleveland, Denver and San Francisco showed price increases in May, up from four in April and one in March, according to data released Tuesday. Two other cities, Charlotte, North Carolina, and New York, were flat.
For the first time since early 2007, a composite index of 20 major cities was virtually flat, instead of down.
'We've found the bottom,' said Mark Fleming, chief economist for First American CoreLogic, a data firm.
The release of the surprisingly strong Case-Shiller Price Index, compiled by Standard & Poor's, followed earlier reports that sales of existing homes rose last month for the third consecutive time, while beleaguered homebuilders saw sales of new homes jump in June by the largest amount in eight years.
All of these improvements are tentative, and come after a relentless decline that knocked more than half the value off houses in the worst-hit cities.
Some sceptics believe the market is merely pausing before it resumes falling. Even the most enthusiastic analysts acknowledge that rising unemployment, another leap in foreclosures, or a significant rise in interest rates could snuff out progress.
Still, hope is growing in some quarters that the worst has passed.
'Recession is over, economy is recovering - let's look forward and stop the backward-looking focus,' John E Silvia, the Wells Fargo chief economist, wrote on Tuesday in a research note.
Kirit Shah decided to look forward a few weeks ago. A retired forensic chemist for the New York Police Department, he closed on a house in Royal Palm Beach, Florida.
Mr Shah was not dissuaded when the salesman at K Hovanian Homes told him the five-bedroom place had been empty since it was finished three years ago. 'It was waiting for me,' said Mr Shah, 64. 'I'm on a lakefront. I never dreamed I would be on a lakefront. I'm within walking distance of a swimming pool.' But the thing he likes best is this: He paid US$260,000 for the five-bedroom house, half of what that model was fetching during the boom.
'An excellent deal,' he said. 'Plus I got a good rate on my mortgage, under 5 per cent.'
Turning markets are full of uncertainty. If Mr Shah was one reason why new home sales were up 11 per cent in June from May, it is unclear just how many others like him are out there.
Brad Hunter, chief economist for Metrostudy, a research firm, said the new home numbers appeared to illustrate less a return of buyers like Mr Shah and more a resurgence of investors and speculators.
Metrostudy's own data showed that the number of buyers during the second quarter who actually moved into their new house declined 2.6 per cent.
'Investors are turning right around and putting the houses on the market for sale or for rent,' Mr Hunter said. 'What appears to have been an absorption of excess inventory can be just a changing of ownership of that inventory.'
The good news in the Case-Shiller index, the most widely watched source of price information about the housing market, is equally provisionary. Tracking only large urban areas, the monthly index does not represent the country as a whole.
The Case-Shiller figures released on Tuesday showed that May prices were down 17.1 compared with May of the previous year. As bad as that may sound, it was the fourth consecutive month that price declines slowed - a step in the right direction, but perhaps not cause for widespread celebration.
More attention was focused on the news that, when May was compared with April, the price index covering 20 major cities showed a half-per cent gain. It was the first month-over-month increase in the 20-city index in 34 months.
'It is very possible that years from now we will say that April 2009 was the trough in home prices,' said Maureen Maitland, vice-president for index services at Standard & Poor's.
When the numbers were adjusted for seasonal factors, however, the usual way housing figures are presented, the slight gain disappeared and the 20-city index was essentially flat. Half of the cities showed continued declines.
One reason the market is perking up in some places, real estate agents say, is because of the encouragement offered by such measures as the first time buyer's tax credit of US$8,000.
All the more reason, said the National Association of Realtors, to not only extend the credit but expand it. The association is lobbying for the current credit, which expires in December, to be replaced with a US$15,000 credit for all buyers.
'This is a relatively low-cost way to keep the housing market moving forward,' said Paul Bishop, the association's managing director of research.
Another reason for the market's resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales.
In some troubled regions, agents say they cannot remember the last transaction that did not involve a bank disposing of a property.
These communities are not yet showing any improvement in prices.
Las Vegas was the worst-performing city in the May Case-Shiller index, falling 2.6 per cent. Prices have fallen there by a third in the last year.
'The mom and pop that work at the Hilton can now afford a home here again,' said Justin Pechonis, a Las Vegas real estate agent.
'Las Vegas is a great place to buy now.' But not from him. Sickened by seeing so many clients foreclosed, he is getting out of the business. He now drives a taxi.
The Obama administration has been seeking to stabilise the market in part by slowing the pace of foreclosures. Representatives from 25 leading mortgage servicers met administration officials on Tuesday and promised to pick up the pace of loan modifications. If that does not happen and there is another flood of foreclosures, Las Vegas may become the rule rather than the exception.
Andrew LePage, who analyses California and other markets for DataQuick, a research firm, said such a scenario is possible. 'The dark clouds are still there,' he said.
All this uncertainty breeds a hesitancy that seems to show up in nearly every sale, especially at the higher end of the market. When Margot and Pascal Lalonde decided in April to sell their two-bedroom condominium in the North End of Boston, they methodically quizzed six experienced agents about a good price.
List it for under US$500,000 unless you want to be here for months, said one agent. Two others said they should demand US$675,000. The other three were in between.
After 80 days on the market and two small price reductions, the condo is now under contract for US$550,000. The buyers examined the apartment six times. The Lalondes, who are moving to Short Hills, New Jersey, expect to be no less careful when they buy their new place. -- NYT
Quintain Sees UK Property Market Revival Signs
Source : The Business Times, July 30, 2009
Uncertain rental prospects for vacant properties still a concern, however
(LONDON) UK developer Quintain Estates and Development says Britain's fractured commercial real estate market is showing signs of revival although uncertain letting prospects for vacant properties remain a concern.
The urban regeneration specialist, which is redeveloping almost 120 hectares of land in London's Wembley and Greenwich Peninsula districts, said yesterday that prices were stabilising in some parts of the market but the company did not rule out further reductions in values, especially for lower-quality assets.
Despite challenging economic conditions, Quintain said its ability to collect rents remained strong, with 99.5 per cent of rents due gathered at the last payment date.
While bad debts almost doubled in the period to £580,000 (S$1.38 million) following the administration of furniture retailer MFI, vacancy rates were unchanged since March 31.
Last month, Quintain said the net asset value of its properties plunged 40 per cent to 348 pence per share in the year to end-March 2009.
Shares in the firm have rallied 82 per cent since the start of the year as worries of cashflow pressures and poor access to debt funding subside.
But the stock, which closed at 67 pence on Tuesday, is still 60 per cent below its level of July 2008.
Quintain said it made cost savings of £11 million since April, bringing the total sum of savings to £108.5 million since April 2008.
The company has also renegotiated terms of key borrowing facilities with Barclays, extending repayment dates on some short-term loans to April 2013 from April 2010.
The company's maximum gearing ratio has increased to 150 per cent and net debts stood at £547 million on June 30. -- Reuters
Uncertain rental prospects for vacant properties still a concern, however
(LONDON) UK developer Quintain Estates and Development says Britain's fractured commercial real estate market is showing signs of revival although uncertain letting prospects for vacant properties remain a concern.
The urban regeneration specialist, which is redeveloping almost 120 hectares of land in London's Wembley and Greenwich Peninsula districts, said yesterday that prices were stabilising in some parts of the market but the company did not rule out further reductions in values, especially for lower-quality assets.
Despite challenging economic conditions, Quintain said its ability to collect rents remained strong, with 99.5 per cent of rents due gathered at the last payment date.
While bad debts almost doubled in the period to £580,000 (S$1.38 million) following the administration of furniture retailer MFI, vacancy rates were unchanged since March 31.
Last month, Quintain said the net asset value of its properties plunged 40 per cent to 348 pence per share in the year to end-March 2009.
Shares in the firm have rallied 82 per cent since the start of the year as worries of cashflow pressures and poor access to debt funding subside.
But the stock, which closed at 67 pence on Tuesday, is still 60 per cent below its level of July 2008.
Quintain said it made cost savings of £11 million since April, bringing the total sum of savings to £108.5 million since April 2008.
The company has also renegotiated terms of key borrowing facilities with Barclays, extending repayment dates on some short-term loans to April 2013 from April 2010.
The company's maximum gearing ratio has increased to 150 per cent and net debts stood at £547 million on June 30. -- Reuters
Signs Of Speculation In Private Property Market
Source : 938LIVE, 29 July 2009
The government is seeing some signs of speculation in the Singapore property market, according to National Development Minister Mah Bow Tan.
Marina Bay Financial Centre
Speaking on the sidelines of the topping out ceremony of the Marina Bay Financial Centre on Wednesday morning, Mr Mah said the government is monitoring the situation.
It is uncertain if the buying momentum seen in recent months can be sustained, he added.
"The forecast is still for negative growth this year. Although it's not as negative as it was in the beginning of the year, I think there is still uncertainty... But what is important really is for all of us, all the players in the market, to make sure that the market remains healthy," said Mr Mah.
According to latest data from the Urban Redevelopment Authority (URA), sales of uncompleted private homes reached a record high of 1,825 units in June as improving sentiment in the market spurred homebuyers to snap up more units.
Mr Mah assured that there is adequate supply of units in the market for now and the government is prepared to release more land for sale if necessary.
On the Marina Bay Financial Centre, Mr Mah noted that it has already attracted over S$20 billion of private real estate investments from both local and international investors. About 61 per cent of space in the centre has been pre-leased.
Mr Mah also reiterated the government's commitment to the project, saying another S$1 billion in infrastructure works will be invested over the next 10 to 15 years. The figure is on top of the S$7.5 billion already invested in Marina Bay. - 938LIVE/so
The government is seeing some signs of speculation in the Singapore property market, according to National Development Minister Mah Bow Tan.
Marina Bay Financial CentreSpeaking on the sidelines of the topping out ceremony of the Marina Bay Financial Centre on Wednesday morning, Mr Mah said the government is monitoring the situation.
It is uncertain if the buying momentum seen in recent months can be sustained, he added.
"The forecast is still for negative growth this year. Although it's not as negative as it was in the beginning of the year, I think there is still uncertainty... But what is important really is for all of us, all the players in the market, to make sure that the market remains healthy," said Mr Mah.
According to latest data from the Urban Redevelopment Authority (URA), sales of uncompleted private homes reached a record high of 1,825 units in June as improving sentiment in the market spurred homebuyers to snap up more units.
Mr Mah assured that there is adequate supply of units in the market for now and the government is prepared to release more land for sale if necessary.
On the Marina Bay Financial Centre, Mr Mah noted that it has already attracted over S$20 billion of private real estate investments from both local and international investors. About 61 per cent of space in the centre has been pre-leased.
Mr Mah also reiterated the government's commitment to the project, saying another S$1 billion in infrastructure works will be invested over the next 10 to 15 years. The figure is on top of the S$7.5 billion already invested in Marina Bay. - 938LIVE/so
Thursday, July 30, 2009
Property Developers Celebrate Tower One Topping Out
Source : The Business Times, July 30 2009
Standard Chartered, an anchor tenant, will take up 500,000 sq ft.
KEPPEL Land, Cheung Kong (Holdings) and Hongkong Land jointly celebrated the topping out of Tower One at Marina Bay Financial Centre (MBFC) yesterday. National Development Minister Mah Bow Tan was guest of honour at the event.
Popping the confetti: Standard Chartered is an anchor tenant and will be taking up 500,000 sq ft. The building will obtain temporary occupation permit next year
Tower One achieved a 100 per cent pre-commitment rate when it was launched in 2007. Standard Chartered Bank is an anchor tenant and will be taking up 500,000 sq ft of office space. The 33-storey building will obtain its temporary occupation permit next year.
Towers Two and Three have secured pre-commitment rates of around 45 per cent and 55 per cent respectively. This translates to a pre-commitment rate of 61 per cent for the first two phases of MBFC.
Together, the three office towers will offer about three million sq ft of prime Grade A office space. MBFC also comprises retail space and two residential towers.
There has been an increase in leasing enquiries for space at MBFC in the past few months, said Raffles Quay Asset Management general manager Wilson Kwong.
Marina Bay has attracted investments of more than $27.5 billion from both the private and public sectors so far.
Standard Chartered, an anchor tenant, will take up 500,000 sq ft.
KEPPEL Land, Cheung Kong (Holdings) and Hongkong Land jointly celebrated the topping out of Tower One at Marina Bay Financial Centre (MBFC) yesterday. National Development Minister Mah Bow Tan was guest of honour at the event.
Popping the confetti: Standard Chartered is an anchor tenant and will be taking up 500,000 sq ft. The building will obtain temporary occupation permit next yearTower One achieved a 100 per cent pre-commitment rate when it was launched in 2007. Standard Chartered Bank is an anchor tenant and will be taking up 500,000 sq ft of office space. The 33-storey building will obtain its temporary occupation permit next year.
Towers Two and Three have secured pre-commitment rates of around 45 per cent and 55 per cent respectively. This translates to a pre-commitment rate of 61 per cent for the first two phases of MBFC.
Together, the three office towers will offer about three million sq ft of prime Grade A office space. MBFC also comprises retail space and two residential towers.
There has been an increase in leasing enquiries for space at MBFC in the past few months, said Raffles Quay Asset Management general manager Wilson Kwong.
Marina Bay has attracted investments of more than $27.5 billion from both the private and public sectors so far.
Markets Could Be In For A Reality Check
Source : The Business Times, July 29 2009
Last week, property data confirmed that Q2 2009 was one of the best performing on record.
July has been a month of unusually good news. It began with the astounding jump in GDP growth figures for the second quarter, which saw economists quickly revise full-year growth estimates upwards. Then, last week, property data confirmed that Q2 2009 was one of the best performing on record, with the number of new home sales exceeding those for the whole of 2008. The Housing and Development Board’s resale price index also reached an all-time high in the quarter. Industrial production was down in June, but the NODX rose by 7.6 per cent in quarterly terms. And the Singapore stock exchange has also rebounded nicely.
But this was all news that was not quite in accord with the tone of the official outlook for the economy. After revising the 2009 growth forecast from a contraction of 6-9 per cent to 4-6 per cent, the Ministry of Trade and Industry (MTI) said: “Notwithstanding the improved performance in the second quarter, the outlook for the rest of the year remains largely unchanged – of a weak recovery susceptible to downside risks.” This was attributed to the continued weakness in the global economy, with MTI citing rising unemployment and reduced household spending in the US and the euro zone. It added that the housing markets in many leading economies have yet to bottom out, while financial institutions are still in the process of deleveraging. “At this juncture, there is no evidence yet of a decisive improvement in final demand,” it added.
While the Singapore economy is very open and reliant on the global economy, it is interesting to find that the asset markets here are capable of running up far in advance of an economic recovery. There are, however, good grounds to be circumspect. One of the reasons for the increase in the GDP numbers was the spike in biomedical manufacturing output and electronics inventory restocking. MTI said both may not be sustained.
Recently, Prime Minister Lee Hsien Loong also drew attention to the uncertainties ahead. “For the next couple of years – 2010, 2011 – we don’t know how the world economy will be, and how that will affect us and what we can do about it,” he said. US officials have also expressed caution as to when the economic recovery will kick in. Moreover, there will be a time lag of at least a couple of quarters before a US recovery spills over into Asia.
And yet, we have this stock and property market exuberance. One of the reasons for this is simply the volume of liquidity sloshing around the world at a time when monetary policies are easy just about everywhere. But this is not a sustainable dynamic. At some point, the monetary stimuli will have to be withdrawn, and markets would need to be better supported by economic fundamentals. Market players should be wary of this. They should recognise that, at this point, they are ahead of the economic curve, and that, sooner or later, the markets will come up against a reality check.
Last week, property data confirmed that Q2 2009 was one of the best performing on record.
July has been a month of unusually good news. It began with the astounding jump in GDP growth figures for the second quarter, which saw economists quickly revise full-year growth estimates upwards. Then, last week, property data confirmed that Q2 2009 was one of the best performing on record, with the number of new home sales exceeding those for the whole of 2008. The Housing and Development Board’s resale price index also reached an all-time high in the quarter. Industrial production was down in June, but the NODX rose by 7.6 per cent in quarterly terms. And the Singapore stock exchange has also rebounded nicely.
But this was all news that was not quite in accord with the tone of the official outlook for the economy. After revising the 2009 growth forecast from a contraction of 6-9 per cent to 4-6 per cent, the Ministry of Trade and Industry (MTI) said: “Notwithstanding the improved performance in the second quarter, the outlook for the rest of the year remains largely unchanged – of a weak recovery susceptible to downside risks.” This was attributed to the continued weakness in the global economy, with MTI citing rising unemployment and reduced household spending in the US and the euro zone. It added that the housing markets in many leading economies have yet to bottom out, while financial institutions are still in the process of deleveraging. “At this juncture, there is no evidence yet of a decisive improvement in final demand,” it added.While the Singapore economy is very open and reliant on the global economy, it is interesting to find that the asset markets here are capable of running up far in advance of an economic recovery. There are, however, good grounds to be circumspect. One of the reasons for the increase in the GDP numbers was the spike in biomedical manufacturing output and electronics inventory restocking. MTI said both may not be sustained.
Recently, Prime Minister Lee Hsien Loong also drew attention to the uncertainties ahead. “For the next couple of years – 2010, 2011 – we don’t know how the world economy will be, and how that will affect us and what we can do about it,” he said. US officials have also expressed caution as to when the economic recovery will kick in. Moreover, there will be a time lag of at least a couple of quarters before a US recovery spills over into Asia.
And yet, we have this stock and property market exuberance. One of the reasons for this is simply the volume of liquidity sloshing around the world at a time when monetary policies are easy just about everywhere. But this is not a sustainable dynamic. At some point, the monetary stimuli will have to be withdrawn, and markets would need to be better supported by economic fundamentals. Market players should be wary of this. They should recognise that, at this point, they are ahead of the economic curve, and that, sooner or later, the markets will come up against a reality check.
马宝山：私宅供应足 购屋者不应贸然进场
Source : 《联合早报》July 30, 2009
国家发展部长马宝山指出，虽然政府看到本地房地产市场出现一些投机现象，但他一再保证市场上有足够的私宅供应，呼吁购屋者不应贸然进场。
他表示，若有需要，政府会在明年上半年的政府售地活动中，让“正选名单”(Confirmed List)“解冻”。
最近房地产市场旺热，价格开始节节攀升。一些新推出市场的私宅价格，已贴近2007年底高峰时期的价位。
一些房地产经纪甚至会告诉潜在买家，如果要参与发展商的预售活动，就需要提供一张“空白支票”显示自己的诚意，争取预购时自己看中的单位。
马宝山昨天早上在滨海湾金融中心（MBFC）第一商业大楼（Tower 1）的盖顶仪式后，接受媒体访问时，一再提醒购屋者要时刻警惕，做足功课，详细阅读报章、分析市区重建局的卖房数据，与分析师交谈、做到精打细算，量力而为，千万不要只听信谣言、发展商或经纪的一面之词，或只看到眼前的热卖现象，就冲动地交出空白支票。
马宝山说：“我一直告诉人们的是，不要只到示范公寓，然后带着空白支票。你目前或许负担得起，但利率会变化，如果将来利率上升，你负担得起吗？如果你或者家人失业，你还能负担吗？”
他也指出，这回房地产旺热的买气是否能持续，依然是个未知数，因为我国经济虽然放慢了下跌的步伐，但还是属于负增长。这与2007年房市旺热时不同，至少当时新加坡的经济依然取得良好增长。 马宝山说，目前政府正密切关注房市的发展，并将采取必要行动，确保炒卖活动不会导致房市泡沫的形成，但购屋者自己也必须谨慎判断。
新加坡产业发展商公会(REDAS)昨晚也表发文告，表示认同部长有关房市不应会形成房市泡沫的看法。公会指出，目前的市场上，不是所有新推出的项目都会被抢购一空，只有一些新项目基于不同理由，卖得特别好，这或许与积压需求（pent-up demand）有关。但发展商与政府一样，都有一个共同信念，就是看到一个稳步增长、稳定和可持续发展的房地产市场。
目前没出现过度炒作现象
至于政府是否会在此时推出降温措施？马宝山说，虽然政府注意到房地产市场出现了炒作现象，上回房市高峰时曾出现的“手法”现在开始出现，但他不认为那是过度炒作，因此，政府会继续关注局势的发展才决定。
在供应方面，根据市建局提供的数据，截至今年第二季，市场可供应的潜在私宅单位高达6万2350个，这些单位将从现在到2013年以后，陆续推出市场。目前，已推出市场但还未售出的单位就有3万8482个。
马宝山表示，若有必要，政府会再推出正选名单。
政府是在去年10月底，当金融海啸席卷时，基于经济展望不佳为由，突然宣布把“正选名单”冻结。
我国政府每年会分两次公布政府售地计划，因此，今年上半年和下半年的“正选名单”都已遭“冻结”。在2001年10月至2005年上半年，政府也同样曾基于经济理由，暂停政府售地计划，整个“冬眠”长达近四年。
据了解，政府2005年下半年恢复直接招标卖地的做法（即让正选名单解冻），是因为接到市场希望有更多地皮可选购的要求。
针对马宝山昨天的谈话，市场人士看法不一。
卓登新达研究部主管陈瑞谨呼吁政府马上恢复“正选名单”。他认为，若有实际需求，没有理由不马上增加供应。因为这就可以传达一个信息，就是接下来的供应会增加。这么一来，那些投机者或许会因无法再高价转卖楼花，“捞取”较多好处，而选择离场，让那些打算自住的买家有机会买到私宅单位。
陈瑞谨说，私宅市场从今年2月开始回温至今，已连续四个月出现销售佳绩，这个月也会传出捷报，如果等到明年1月才宣布让“正选名单”解冻，恐怕为时已晚。
然而，房地产资深分析员麦俊荣却持有不同看法，他认为，政府若现在就宣布降温措施，可能会“扼杀”刚出现的复苏。他也认为，政府想对炒作投机者发出的信息是，如果情况恶化，政府是能够采取降温措施的。
在政府组屋市场，马宝山昨天也表示，若有需求，接下来政府或许会推出更多四至五房式的组屋单位。
国家发展部长马宝山指出，虽然政府看到本地房地产市场出现一些投机现象，但他一再保证市场上有足够的私宅供应，呼吁购屋者不应贸然进场。
他表示，若有需要，政府会在明年上半年的政府售地活动中，让“正选名单”(Confirmed List)“解冻”。
最近房地产市场旺热，价格开始节节攀升。一些新推出市场的私宅价格，已贴近2007年底高峰时期的价位。
一些房地产经纪甚至会告诉潜在买家，如果要参与发展商的预售活动，就需要提供一张“空白支票”显示自己的诚意，争取预购时自己看中的单位。
马宝山昨天早上在滨海湾金融中心（MBFC）第一商业大楼（Tower 1）的盖顶仪式后，接受媒体访问时，一再提醒购屋者要时刻警惕，做足功课，详细阅读报章、分析市区重建局的卖房数据，与分析师交谈、做到精打细算，量力而为，千万不要只听信谣言、发展商或经纪的一面之词，或只看到眼前的热卖现象，就冲动地交出空白支票。
马宝山说：“我一直告诉人们的是，不要只到示范公寓，然后带着空白支票。你目前或许负担得起，但利率会变化，如果将来利率上升，你负担得起吗？如果你或者家人失业，你还能负担吗？”
他也指出，这回房地产旺热的买气是否能持续，依然是个未知数，因为我国经济虽然放慢了下跌的步伐，但还是属于负增长。这与2007年房市旺热时不同，至少当时新加坡的经济依然取得良好增长。 马宝山说，目前政府正密切关注房市的发展，并将采取必要行动，确保炒卖活动不会导致房市泡沫的形成，但购屋者自己也必须谨慎判断。
新加坡产业发展商公会(REDAS)昨晚也表发文告，表示认同部长有关房市不应会形成房市泡沫的看法。公会指出，目前的市场上，不是所有新推出的项目都会被抢购一空，只有一些新项目基于不同理由，卖得特别好，这或许与积压需求（pent-up demand）有关。但发展商与政府一样，都有一个共同信念，就是看到一个稳步增长、稳定和可持续发展的房地产市场。
目前没出现过度炒作现象
至于政府是否会在此时推出降温措施？马宝山说，虽然政府注意到房地产市场出现了炒作现象，上回房市高峰时曾出现的“手法”现在开始出现，但他不认为那是过度炒作，因此，政府会继续关注局势的发展才决定。
在供应方面，根据市建局提供的数据，截至今年第二季，市场可供应的潜在私宅单位高达6万2350个，这些单位将从现在到2013年以后，陆续推出市场。目前，已推出市场但还未售出的单位就有3万8482个。
马宝山表示，若有必要，政府会再推出正选名单。
政府是在去年10月底，当金融海啸席卷时，基于经济展望不佳为由，突然宣布把“正选名单”冻结。
我国政府每年会分两次公布政府售地计划，因此，今年上半年和下半年的“正选名单”都已遭“冻结”。在2001年10月至2005年上半年，政府也同样曾基于经济理由，暂停政府售地计划，整个“冬眠”长达近四年。
据了解，政府2005年下半年恢复直接招标卖地的做法（即让正选名单解冻），是因为接到市场希望有更多地皮可选购的要求。
针对马宝山昨天的谈话，市场人士看法不一。
卓登新达研究部主管陈瑞谨呼吁政府马上恢复“正选名单”。他认为，若有实际需求，没有理由不马上增加供应。因为这就可以传达一个信息，就是接下来的供应会增加。这么一来，那些投机者或许会因无法再高价转卖楼花，“捞取”较多好处，而选择离场，让那些打算自住的买家有机会买到私宅单位。
陈瑞谨说，私宅市场从今年2月开始回温至今，已连续四个月出现销售佳绩，这个月也会传出捷报，如果等到明年1月才宣布让“正选名单”解冻，恐怕为时已晚。
然而，房地产资深分析员麦俊荣却持有不同看法，他认为，政府若现在就宣布降温措施，可能会“扼杀”刚出现的复苏。他也认为，政府想对炒作投机者发出的信息是，如果情况恶化，政府是能够采取降温措施的。
在政府组屋市场，马宝山昨天也表示，若有需求，接下来政府或许会推出更多四至五房式的组屋单位。
中国房市转趋活跃
Source : 《联合早报》July 29, 2009
一项调查显示，今年头两个月，中国的银行恢复了对房地产企业贷款等措施，令楼市转趋活跃，其中深圳上半年楼价升30%至35%，广州楼价升20%，预料下半年将继续保持活跃。
该项由香港置业国际做的调查还发现，今年上半年港人在中国购买的物业单位数目约1万1100至1万2100个，按年上升23%，涉及金额约为92亿元人民币（19亿2000万新元），增加22.6%。
广州市一处在建的商品房。调查显示，今年来广州楼价升20%，预料下半年将继续保持活跃。（新华社）
上半年购买深圳物业的港人，选择作出租投资的比率为26%，同比增加3个百分点。港人因工作（37%）及投资收租（26%）而于深圳置业，则共占63%。
与此同时，港人购买深圳物业作度假及退休用的比率，有下调的情况。
置业国际主席蔡涯棉表示，深圳、广州、上海、北京楼市已陆续回暖，因此预计港人到广东省特别是深圳、广州投资置业房地产数目，将会显著增加。
他指出，大陆楼市回暖，主要是受惠于去年底中国家推出一系列刺激楼市措施，包括放宽宏调及多次减息，令市场信心回稳。
他说，预料下半年北京的积极财政政策，将令中国经济保持动力，下半年楼价将有望持续向上，估计深圳楼价将有6%至8%升幅、广州升一成、而上海及珠三角楼价升幅为5%至7%。
“由于深圳市区土地供应严重缺乏，加上人口众多，深圳又与香港接连，这些因素均对楼价有一定支持，因此，高升幅不会造成泡沫。”蔡涯棉说。
他相信，中国政府为了实现“保八”目标，会维持适度的货币宽松政策，预料北京不会全面收紧第二套房贷。他还指出，第二套房贷政策一向存在，预计下半年银行在审批时会较严谨。
另一方面，高盛的研究报告指出，年初至今中国15个城市的楼宇销售量齐录得升幅，按年比较，中位数达1.02倍；与2007年相比，12个城市中有10个城市销售均录增长，中位数达23%。
高盛指出，于本月20日至26日的一星期内，中国15个城市中有8个城市的销售量，按周录得跌幅，中位数为-1%；按年比较，15个城市销售量则齐录升幅，中位数达116%。
平均售价方面，过去一周，10个城市之中有5个城市售价上升，中位数1%，按年比较，当中7个城市售价升幅中位数为9%。
根据戴德梁行最新的第二季度上海房地产报告显示，未来四个季度，将有130万4372平方米的大规模新增办公楼供应上市。如果项目如期进行，预计未来空置率将进一步增加。
该行指出，高企的空置率将给上海办公楼租金带来持续向下的压力。虽然经济最坏的时刻已经过去，但是甲级办公楼市场具有外生性，因此在短期内，市场需求依然鲜有起色。
住宅市场方面，戴德梁行认为，虽然全球经济仍处于低迷期，但是上海的高档住宅已开始回暖。今年4月和5月上海高档住宅成交十分活跃。
该行相信，在第三季度成交量将会较第二季度有所放缓，但仍相对活跃，并预计在第三季度高档别墅和高档公寓的价格还将有所上升。
一项调查显示，今年头两个月，中国的银行恢复了对房地产企业贷款等措施，令楼市转趋活跃，其中深圳上半年楼价升30%至35%，广州楼价升20%，预料下半年将继续保持活跃。
该项由香港置业国际做的调查还发现，今年上半年港人在中国购买的物业单位数目约1万1100至1万2100个，按年上升23%，涉及金额约为92亿元人民币（19亿2000万新元），增加22.6%。
广州市一处在建的商品房。调查显示，今年来广州楼价升20%，预料下半年将继续保持活跃。（新华社）上半年购买深圳物业的港人，选择作出租投资的比率为26%，同比增加3个百分点。港人因工作（37%）及投资收租（26%）而于深圳置业，则共占63%。
与此同时，港人购买深圳物业作度假及退休用的比率，有下调的情况。
置业国际主席蔡涯棉表示，深圳、广州、上海、北京楼市已陆续回暖，因此预计港人到广东省特别是深圳、广州投资置业房地产数目，将会显著增加。
他指出，大陆楼市回暖，主要是受惠于去年底中国家推出一系列刺激楼市措施，包括放宽宏调及多次减息，令市场信心回稳。
他说，预料下半年北京的积极财政政策，将令中国经济保持动力，下半年楼价将有望持续向上，估计深圳楼价将有6%至8%升幅、广州升一成、而上海及珠三角楼价升幅为5%至7%。
“由于深圳市区土地供应严重缺乏，加上人口众多，深圳又与香港接连，这些因素均对楼价有一定支持，因此，高升幅不会造成泡沫。”蔡涯棉说。
他相信，中国政府为了实现“保八”目标，会维持适度的货币宽松政策，预料北京不会全面收紧第二套房贷。他还指出，第二套房贷政策一向存在，预计下半年银行在审批时会较严谨。
另一方面，高盛的研究报告指出，年初至今中国15个城市的楼宇销售量齐录得升幅，按年比较，中位数达1.02倍；与2007年相比，12个城市中有10个城市销售均录增长，中位数达23%。
高盛指出，于本月20日至26日的一星期内，中国15个城市中有8个城市的销售量，按周录得跌幅，中位数为-1%；按年比较，15个城市销售量则齐录升幅，中位数达116%。
平均售价方面，过去一周，10个城市之中有5个城市售价上升，中位数1%，按年比较，当中7个城市售价升幅中位数为9%。
根据戴德梁行最新的第二季度上海房地产报告显示，未来四个季度，将有130万4372平方米的大规模新增办公楼供应上市。如果项目如期进行，预计未来空置率将进一步增加。
该行指出，高企的空置率将给上海办公楼租金带来持续向下的压力。虽然经济最坏的时刻已经过去，但是甲级办公楼市场具有外生性，因此在短期内，市场需求依然鲜有起色。
住宅市场方面，戴德梁行认为，虽然全球经济仍处于低迷期，但是上海的高档住宅已开始回暖。今年4月和5月上海高档住宅成交十分活跃。
该行相信，在第三季度成交量将会较第二季度有所放缓，但仍相对活跃，并预计在第三季度高档别墅和高档公寓的价格还将有所上升。
Tuesday, July 28, 2009
Expats Here Live The High Life: HSBC Survey
Source : The Business Times, July 28, 2009
DESPITE the high cost of living for expatriates in Singapore, and cutbacks in luxury spending due to the recession, most expats here want to stay put, an HSBC survey has found.
Mr Arcuri: Reduction in rents have increased expats'
disposable income
HSBC's Expat Economics survey, carried out from February to April this year, polled over 3,100 expats across 50 countries on their financial situation and lifestyle.
'Expats in Singapore live the high life,' says the survey report, released yesterday.
More than three-quarters of the 192 expats polled here said they have more disposable income than they had back home.
Three-quarters also said they save more here than they did back home. Among various wealth accumulation tools, the three most popular were savings accounts, managed funds and shares.
Sebastian Arcuri, head of personal financial services at HSBC Singapore, said: 'Our expat clients have told us that reductions in rent over the past nine months have increased their disposable income. However, due to the uncertain economic times, most of them are opting not to spend this increase in their income.'
Two-thirds of the expats polled here said they have cut back on spending on luxury items.
The cost of living for expatriates in Singapore remains high. Forty-four per cent of those polled here spend more on accommodation than expats in other countries, and entertainment and healthcare costs are also above the global average, the HSBC survey found.
However, 91 per cent of those polled here said they have not considered returning home amid the economic crisis - higher than the 85 per cent global average.
Of those who have considered moving home, 28 per cent cited shorter work contracts as a key factor, compared with the global average of 15 per cent.
Overall, Singapore ranked sixth worldwide on the report's league table of quality of life, as measured by expats' annual income, disposable income, ability to save and possession of luxury items.
Hong Kong, another popular expat location in this region, ranked fourth. The Russian Federation, Qatar and Saudi Arabia took the top three spots.
DESPITE the high cost of living for expatriates in Singapore, and cutbacks in luxury spending due to the recession, most expats here want to stay put, an HSBC survey has found.
Mr Arcuri: Reduction in rents have increased expats' disposable income
HSBC's Expat Economics survey, carried out from February to April this year, polled over 3,100 expats across 50 countries on their financial situation and lifestyle.
'Expats in Singapore live the high life,' says the survey report, released yesterday.
More than three-quarters of the 192 expats polled here said they have more disposable income than they had back home.
Three-quarters also said they save more here than they did back home. Among various wealth accumulation tools, the three most popular were savings accounts, managed funds and shares.
Sebastian Arcuri, head of personal financial services at HSBC Singapore, said: 'Our expat clients have told us that reductions in rent over the past nine months have increased their disposable income. However, due to the uncertain economic times, most of them are opting not to spend this increase in their income.'
Two-thirds of the expats polled here said they have cut back on spending on luxury items.
The cost of living for expatriates in Singapore remains high. Forty-four per cent of those polled here spend more on accommodation than expats in other countries, and entertainment and healthcare costs are also above the global average, the HSBC survey found.
However, 91 per cent of those polled here said they have not considered returning home amid the economic crisis - higher than the 85 per cent global average.
Of those who have considered moving home, 28 per cent cited shorter work contracts as a key factor, compared with the global average of 15 per cent.
Overall, Singapore ranked sixth worldwide on the report's league table of quality of life, as measured by expats' annual income, disposable income, ability to save and possession of luxury items.
Hong Kong, another popular expat location in this region, ranked fourth. The Russian Federation, Qatar and Saudi Arabia took the top three spots.
Phase 1 Of GuocoLand's Ascot Park All Sold
Source : The Business Times, July 28, 2009
THE first phase of Guoco- Land's Ascot Park project in Nanjing, China has been fully sold, the group said yesterday.
Popular: An artist's impression of GuocoLand's Ascot Park project in Nanjing, China. With Phase 1's 594 units sold out at an average price of 7,100 yuan per sq m, Phase 2's 518 units will be launched in a few months.
Phase 1 of Ascot Park - comprising 594 units with a mix of 2 and 3-bedroom units in sizes ranging from 87 to 130 square metres - has been sold at an average price of 7,100 yuan (S$1,500) per sq m. Phase 2, comprising the remaining 518 units, will be launched in a few months.
The development caters to a niche market segment for units with bare finishes, enabling homebuyers to fit out their homes according to their preference.
Construction of Phase 1 is expected to be completed by the end of this year.
Located 14 kilometres from Nanjing city centre, the Balinese-themed development includes a man- made lake, a clubhouse with an extensive range of amenities, and a multi-purpose commercial centre with a selection of eateries and retail stores.
The project is on a 90,000 sq m site with a total gross floor area of about 240,000 sq m. GuocoLand (China) group MD Violet Lee said: 'The strong sales for Phase 1 affirm the demand for our niche products which provide a quality setting with lush landscaping for our homebuyers to fit out their individual units to their liking. We are confident that Phase 2, to be launched in the next few months, will also be well received.'
THE first phase of Guoco- Land's Ascot Park project in Nanjing, China has been fully sold, the group said yesterday.
Popular: An artist's impression of GuocoLand's Ascot Park project in Nanjing, China. With Phase 1's 594 units sold out at an average price of 7,100 yuan per sq m, Phase 2's 518 units will be launched in a few months.Phase 1 of Ascot Park - comprising 594 units with a mix of 2 and 3-bedroom units in sizes ranging from 87 to 130 square metres - has been sold at an average price of 7,100 yuan (S$1,500) per sq m. Phase 2, comprising the remaining 518 units, will be launched in a few months.
The development caters to a niche market segment for units with bare finishes, enabling homebuyers to fit out their homes according to their preference.
Construction of Phase 1 is expected to be completed by the end of this year.
Located 14 kilometres from Nanjing city centre, the Balinese-themed development includes a man- made lake, a clubhouse with an extensive range of amenities, and a multi-purpose commercial centre with a selection of eateries and retail stores.
The project is on a 90,000 sq m site with a total gross floor area of about 240,000 sq m. GuocoLand (China) group MD Violet Lee said: 'The strong sales for Phase 1 affirm the demand for our niche products which provide a quality setting with lush landscaping for our homebuyers to fit out their individual units to their liking. We are confident that Phase 2, to be launched in the next few months, will also be well received.'
Sharpest Rise In US New-Home Sales In 8 years
Source : The Business Times, July 28, 2009
June's 11% gain points to housing slump stabilising
(WASHINGTON) Purchases of new homes in the US climbed 11 per cent last month, the biggest gain in eight years, underscoring evidence that the deepest housing slump since the Great Depression is starting to stabilise.
Sales increased to a 384,000 annual pace, higher than any forecast of economists surveyed by Bloomberg News and the most since November, figures from the Commerce Department showed yesterday in Washington. The number of houses on the market dropped to the lowest level in more than a decade.
Falling prices and a drop in mortgage rates have started to lure buyers even as the unemployment rate rises. Economists estimate that the worst US recession in five decades is on the verge of ending as downturns in housing and manufacturing ease.
'We are making some progress in absorbing this huge inventory overhang' and that 'is a fundamental step we need to take to begin to see home prices improve', said Robert Dye, a senior economist at PNC Financial Services Group in Pittsburgh. At the same time, rising joblessness means 'a rebound will be modest at best', he added.
Economists forecast that new home sales would rise to 352,000, according to the median of 62 projections in a Bloomberg News survey. Estimates ranged from 335,000 to 377,000. Commerce revised May's reading up to a 346,000 rate from a previously reported 342,000.
'The data will reinforce the developing thinking that the housing market has bottomed and that the economy has stabilised and will grow in the third quarter,' said Jim Awad, managing director at Zephyr Management in New York.
The median price of a new home decreased 12 per cent to US$206,200 from US$234,300 in June last year. Last month's value compares with US$219,000 in May.
Sales of new homes were down 21 per cent from June last year. They reached a record-low 329,000 in January, down 76 per cent from the July 2005 peak.
The jump in sales last month was led by a 43 per cent surge in the Midwest. Purchases increased 29 per cent in the North-east and 23 per cent in the West. They dropped 5.3 per cent in the South, to the lowest level since January 1991.
Builders had 281,000 houses on the market last month, down 4.1 per cent from May and the fewest since February 1998. The number of unsold properites fell a record 36 per cent from June last year. It would take 8.8 months to sell all homes at the current sales pace, the lowest level since October 2007.
Other reports underscore the stabilisation in housing. The Wells Fargo/National Association of Homebuilders sentiment index has risen in five of the past six months, and existing home sales have increased for three months in a row. -- Bloomberg, Reuters
June's 11% gain points to housing slump stabilising
(WASHINGTON) Purchases of new homes in the US climbed 11 per cent last month, the biggest gain in eight years, underscoring evidence that the deepest housing slump since the Great Depression is starting to stabilise.
Sales increased to a 384,000 annual pace, higher than any forecast of economists surveyed by Bloomberg News and the most since November, figures from the Commerce Department showed yesterday in Washington. The number of houses on the market dropped to the lowest level in more than a decade.
Falling prices and a drop in mortgage rates have started to lure buyers even as the unemployment rate rises. Economists estimate that the worst US recession in five decades is on the verge of ending as downturns in housing and manufacturing ease.
'We are making some progress in absorbing this huge inventory overhang' and that 'is a fundamental step we need to take to begin to see home prices improve', said Robert Dye, a senior economist at PNC Financial Services Group in Pittsburgh. At the same time, rising joblessness means 'a rebound will be modest at best', he added.
Economists forecast that new home sales would rise to 352,000, according to the median of 62 projections in a Bloomberg News survey. Estimates ranged from 335,000 to 377,000. Commerce revised May's reading up to a 346,000 rate from a previously reported 342,000.
'The data will reinforce the developing thinking that the housing market has bottomed and that the economy has stabilised and will grow in the third quarter,' said Jim Awad, managing director at Zephyr Management in New York.
The median price of a new home decreased 12 per cent to US$206,200 from US$234,300 in June last year. Last month's value compares with US$219,000 in May.
Sales of new homes were down 21 per cent from June last year. They reached a record-low 329,000 in January, down 76 per cent from the July 2005 peak.
The jump in sales last month was led by a 43 per cent surge in the Midwest. Purchases increased 29 per cent in the North-east and 23 per cent in the West. They dropped 5.3 per cent in the South, to the lowest level since January 1991.
Builders had 281,000 houses on the market last month, down 4.1 per cent from May and the fewest since February 1998. The number of unsold properites fell a record 36 per cent from June last year. It would take 8.8 months to sell all homes at the current sales pace, the lowest level since October 2007.
Other reports underscore the stabilisation in housing. The Wells Fargo/National Association of Homebuilders sentiment index has risen in five of the past six months, and existing home sales have increased for three months in a row. -- Bloomberg, Reuters
UK Home Prices Steady For A Third Straight Month
Source : The Business Times, July 28, 2009
(LONDON) House prices in England and Wales were flat for a third consecutive month in July, causing the year-on-year decline to slow to 7.7 per cent from 8.7 per cent, property data company Hometrack said yesterday.
Pessimistic outlook: A broad-based recovery in UK house prices is still a long way off, says Hometrack
But a broad-based recovery in house prices was still a long way off, with rising unemployment and a shortage of mortgage finance standing in the way, Hometrack said in its report.
Hometrack's monthly survey of estate agents' views of market conditions showed sellers were achieving an average of 91.5 per cent of their asking price, up from 91 per cent in June, and took an average of nine weeks to sell, down from 9.4 weeks.
'A lack of mortgage finance, low buyer confidence and growing fears of unemployment are currently being offset by increased demand, a pick-up in sales and a growing scarcity of housing for sale,' said Richard Donnell, Hometrack's director of research.
The lack of a change in average house prices at a national level masked sharp regional differences, with a scarcity of housing putting upward pressure on house prices in southern England, Hometrack said.
'When demand does start to feed back it will do so relatively slowly, starting in the equity-driven markets of London and the south, and only filtering down the rungs of the housing ladder as the economic recovery starts to gain momentum,' it said.
Surveys of house prices by mortgage lenders Halifax and Nationwide have shown sharper annual falls - down 12.5 per cent and 9.3 per cent respectively in June - than Hometrack's report, but also some sharp one-off monthly increases in house prices.
Mr Donnell said he did not think these marked the start of a durable recovery in house prices. 'The likelihood is that the tales of green shoots are proven to be little more than an unsustainable and short-term blip . . . fed by pent-up demand from opportunistic cash buyers and households looking for family homes in southern England where supply is most constrained.' - Reuters
(LONDON) House prices in England and Wales were flat for a third consecutive month in July, causing the year-on-year decline to slow to 7.7 per cent from 8.7 per cent, property data company Hometrack said yesterday.
Pessimistic outlook: A broad-based recovery in UK house prices is still a long way off, says HometrackBut a broad-based recovery in house prices was still a long way off, with rising unemployment and a shortage of mortgage finance standing in the way, Hometrack said in its report.
Hometrack's monthly survey of estate agents' views of market conditions showed sellers were achieving an average of 91.5 per cent of their asking price, up from 91 per cent in June, and took an average of nine weeks to sell, down from 9.4 weeks.
'A lack of mortgage finance, low buyer confidence and growing fears of unemployment are currently being offset by increased demand, a pick-up in sales and a growing scarcity of housing for sale,' said Richard Donnell, Hometrack's director of research.
The lack of a change in average house prices at a national level masked sharp regional differences, with a scarcity of housing putting upward pressure on house prices in southern England, Hometrack said.
'When demand does start to feed back it will do so relatively slowly, starting in the equity-driven markets of London and the south, and only filtering down the rungs of the housing ladder as the economic recovery starts to gain momentum,' it said.
Surveys of house prices by mortgage lenders Halifax and Nationwide have shown sharper annual falls - down 12.5 per cent and 9.3 per cent respectively in June - than Hometrack's report, but also some sharp one-off monthly increases in house prices.
Mr Donnell said he did not think these marked the start of a durable recovery in house prices. 'The likelihood is that the tales of green shoots are proven to be little more than an unsustainable and short-term blip . . . fed by pent-up demand from opportunistic cash buyers and households looking for family homes in southern England where supply is most constrained.' - Reuters
China's Property Fever Back After Govt Measures Heat Up Prices
Source : The Business Times, July 28, 2009
Beijing house prices rocket 27% from Jan to June as speculators return
(BEIJING) After getting on board China's property boom only three months ago, Beijing property agent Li Zhiwei already has plans to use the profits from his new career to open a karaoke complex.
Building into a bubble? China's government last year cut minimum deposits for first-time home buyers and slashed equity capital requirements on property investments
The 26-year-old is close to making his first pot of gold - a commission on a luxury new apartment near Beijing's Sanlitun shopping and entertainment district that he is close to selling for two million yuan (S$421,000).
'I'm a young man and I love challenges. Sales bring quick money,' said Mr Li, who quit a lower-paying government job in his home city in the central province of Henan after six months of 'boring work'.
While Mr Li will get 10,000 yuan from his first sale, he said top performers at his company could earn more than four times as much each month, a wage that would put him on track to start his karaoke and bar business in a few years.
Such ambitions may have seemed impossible last year when China's property market slumped sharply, hit twice over by government efforts to rein in prices and the global economic crisis.
But China's real estate fever is well and truly back.
Government stimulus measures and speculative investors have helped forge a surprising turnaround, with rocketing prices in some large cities sparking concerns of a new bubble.
'China's residential market has touched rock bottom and is now recovering at a faster pace than expected,' said Alan Chiang, residential market head at property consultancy firm DTZ China.
In the Chinese capital, average house prices jumped 27 per cent from January to June, according to government data published in the state media.
Property prices across all major cities rose by 0.2 per cent in June from a year ago, government figures showed, ending falls since December, when the data posted the first decline since official records were published in mid-2005.
To lift the sector out of its slump, the government last year cut minimum deposits for first-time home buyers and slashed equity capital requirements on property investments.
It also lowered mortgage interest rates, while erasing stamp duty on all private home purchases and value-added tax for land on property sales.
The measures particularly helped average Chinese looking to buy a property as they improved general affordability, according to Hingyin Lee, head of research at Colliers International's China division in Shanghai.
'They gave a lift to ... the mass market,' he said.
But analysts said speculative money was also fuelling the rebound with the property market attracting hot money as a hedge against inflation.
Fears of inflation are rising, fanned by concerns about excess liquidity due to a record US$1.1 trillion of new loans in the first half, as Chinese banks followed government orders to pump-prime the economy.
'Many people have entered the property market to hedge depreciation risks on expectations of inflation, creating investment and even speculation demand,' said Yang Hongxu, an analyst at E-House China Research and Development Institute in Shanghai.
The frenzy seen in the Chinese market is in stark contrast with markets in the United States and other Western countries.
Prices of existing homes in the US - by far the largest segment of the US housing market - dropped by 15 per cent in June from a year before, the National Association of Realtors said. House prices in Britain also fell by 15 per cent year-on-year last month, according to mortgage giant Halifax.
'China's residential market is very different to its counterparts in the West,' said Mr Chiang of DTZ China.
He said China's massive population means there is still a long-term supply shortage. And Chinese buyers have not been as hard hit by the financial crisis as they rely more on savings than mortgages to fund property purchases. -- AFP
Beijing house prices rocket 27% from Jan to June as speculators return
(BEIJING) After getting on board China's property boom only three months ago, Beijing property agent Li Zhiwei already has plans to use the profits from his new career to open a karaoke complex.
Building into a bubble? China's government last year cut minimum deposits for first-time home buyers and slashed equity capital requirements on property investmentsThe 26-year-old is close to making his first pot of gold - a commission on a luxury new apartment near Beijing's Sanlitun shopping and entertainment district that he is close to selling for two million yuan (S$421,000).
'I'm a young man and I love challenges. Sales bring quick money,' said Mr Li, who quit a lower-paying government job in his home city in the central province of Henan after six months of 'boring work'.
While Mr Li will get 10,000 yuan from his first sale, he said top performers at his company could earn more than four times as much each month, a wage that would put him on track to start his karaoke and bar business in a few years.
Such ambitions may have seemed impossible last year when China's property market slumped sharply, hit twice over by government efforts to rein in prices and the global economic crisis.
But China's real estate fever is well and truly back.
Government stimulus measures and speculative investors have helped forge a surprising turnaround, with rocketing prices in some large cities sparking concerns of a new bubble.
'China's residential market has touched rock bottom and is now recovering at a faster pace than expected,' said Alan Chiang, residential market head at property consultancy firm DTZ China.
In the Chinese capital, average house prices jumped 27 per cent from January to June, according to government data published in the state media.
Property prices across all major cities rose by 0.2 per cent in June from a year ago, government figures showed, ending falls since December, when the data posted the first decline since official records were published in mid-2005.
To lift the sector out of its slump, the government last year cut minimum deposits for first-time home buyers and slashed equity capital requirements on property investments.
It also lowered mortgage interest rates, while erasing stamp duty on all private home purchases and value-added tax for land on property sales.
The measures particularly helped average Chinese looking to buy a property as they improved general affordability, according to Hingyin Lee, head of research at Colliers International's China division in Shanghai.
'They gave a lift to ... the mass market,' he said.
But analysts said speculative money was also fuelling the rebound with the property market attracting hot money as a hedge against inflation.
Fears of inflation are rising, fanned by concerns about excess liquidity due to a record US$1.1 trillion of new loans in the first half, as Chinese banks followed government orders to pump-prime the economy.
'Many people have entered the property market to hedge depreciation risks on expectations of inflation, creating investment and even speculation demand,' said Yang Hongxu, an analyst at E-House China Research and Development Institute in Shanghai.
The frenzy seen in the Chinese market is in stark contrast with markets in the United States and other Western countries.
Prices of existing homes in the US - by far the largest segment of the US housing market - dropped by 15 per cent in June from a year before, the National Association of Realtors said. House prices in Britain also fell by 15 per cent year-on-year last month, according to mortgage giant Halifax.
'China's residential market is very different to its counterparts in the West,' said Mr Chiang of DTZ China.
He said China's massive population means there is still a long-term supply shortage. And Chinese buyers have not been as hard hit by the financial crisis as they rely more on savings than mortgages to fund property purchases. -- AFP
Condos Draw Buyers
Source : The Straits Times, July 28, 2009
They could be paying prices seen in prime areas due to current euphoria
IN THE latest sign of the buoyant suburban property market, home hunters in Ang Mo Kio have been submitting cheques to buy homes at prices rarely seen outside
Singapore's prime central areas.
IN TANAH MERAH: More than 40 people, some of them property agents, lined up yesterday afternoon to stake claims even before the opening of Optima's showflat on Friday. They dispersed on being told that the queue would not be recognised. -- ST PHOTO: LAU FOOK KONG
Buyers are said to be paying prices starting from $1,150 per sq ft (psf) for the upcoming 329-unit Centro Residences by Far East Organization.
This means two-bedroom units cost more than $800,000, while three-bedroom apartments will cost $1.1 million and above.
Consultants said the Centro Residences is one of the few 99-year leasehold projects in the suburban areas that has crossed this level.
Jones Lang LaSalle's head of South-east Asia research, Dr Chua Yang Liang, said he was 'a bit shocked' by the pricing. 'I'm afraid at this moment there's a lot of euphoria, so there will be demand for this project even at this price,' he said.
IN ANG MO KIO: Prices for Centro Residences are said to start from $1,150 per sq ft. -- PHOTO: FAR EAST ORGANIZATION
Plus points for the project include its location in a popular mature estate right next to the Ang Mo Kio MRT station, as well as its proximity to international schools. But Dr Chua voiced concern over the 'long-term sustainability of this pricing', saying that upgraders may not be able to afford it.
At another suburban condo, Optima, located next to the Tanah Merah MRT station, more than 40 people lined up on Monday afternoon to stake claim on the 297 units for sale, even before the showflat opens on Friday.
Many of those in the Optima queue were property agents holding places for their clients with blank cheques in hand. However, some in the queue were possibly property agents lining up with a view to buying properties for their own investment purposes.
Pricing for the 99-year leasehold project has not even been finalised, according to developer TID, a tie-up between Hong Leong Group and Japan's Mitsui Fudosan.
They say buyers are so keen on the units that they have submitted blank cheques for them to fill in the amounts once the price list is available - a fairly common tactic in a boom market, and one that has resurfaced in recent weeks.
Read the full story in Tuesday's edition of The Straits Times.
They could be paying prices seen in prime areas due to current euphoria
IN THE latest sign of the buoyant suburban property market, home hunters in Ang Mo Kio have been submitting cheques to buy homes at prices rarely seen outside
Singapore's prime central areas.
IN TANAH MERAH: More than 40 people, some of them property agents, lined up yesterday afternoon to stake claims even before the opening of Optima's showflat on Friday. They dispersed on being told that the queue would not be recognised. -- ST PHOTO: LAU FOOK KONGBuyers are said to be paying prices starting from $1,150 per sq ft (psf) for the upcoming 329-unit Centro Residences by Far East Organization.
This means two-bedroom units cost more than $800,000, while three-bedroom apartments will cost $1.1 million and above.
Consultants said the Centro Residences is one of the few 99-year leasehold projects in the suburban areas that has crossed this level.
Jones Lang LaSalle's head of South-east Asia research, Dr Chua Yang Liang, said he was 'a bit shocked' by the pricing. 'I'm afraid at this moment there's a lot of euphoria, so there will be demand for this project even at this price,' he said.
IN ANG MO KIO: Prices for Centro Residences are said to start from $1,150 per sq ft. -- PHOTO: FAR EAST ORGANIZATION Plus points for the project include its location in a popular mature estate right next to the Ang Mo Kio MRT station, as well as its proximity to international schools. But Dr Chua voiced concern over the 'long-term sustainability of this pricing', saying that upgraders may not be able to afford it.
At another suburban condo, Optima, located next to the Tanah Merah MRT station, more than 40 people lined up on Monday afternoon to stake claim on the 297 units for sale, even before the showflat opens on Friday.
Many of those in the Optima queue were property agents holding places for their clients with blank cheques in hand. However, some in the queue were possibly property agents lining up with a view to buying properties for their own investment purposes.
Pricing for the 99-year leasehold project has not even been finalised, according to developer TID, a tie-up between Hong Leong Group and Japan's Mitsui Fudosan.
They say buyers are so keen on the units that they have submitted blank cheques for them to fill in the amounts once the price list is available - a fairly common tactic in a boom market, and one that has resurfaced in recent weeks.
Read the full story in Tuesday's edition of The Straits Times.
New Boardwalk To Sentosa
Source : The Straits Times, July 28, 2009
BY NEXT November, visitors to Sentosa will have another option of getting to the resort island - on foot. A new 620-m boardwalk with five pairs of covered travellators will make the journey a breeze.
The walkway will link up to Sentosa's integrated resort, Resorts World at Sentosa, which will direct visitors to the resort or to attractions within the rest of the island. -- ST PHOTOS: SENTOSA LEISURE GROUP
Works on the $70-million boardwalk kicked off on Tuesday.
Ranging from 25m to 40m in width, the walkway will also be lined with retail and food and beverage outlets along the way.
The walkway will link up to Sentosa's integrated resort, Resorts World at Sentosa, which will direct visitors to the resort or to attractions within the rest of the island. It is designed to carry 8,000 visitors per hour in each direction and is part of the resort island's plans to enhance transport links as it gears up for a surge in visitors when the IR opens early next year.
The boardwalk, said Sentosa Leisure Group's chief executive officer Mike Barclay, is part of a $300-million budget to overhaul the transport links on the island to ensure that it can receive the increase in visitors, which is expected to double.
The walkway will offer five different themed gardens, from mangrove, rock garden, terrain and hill, coastal flora and rainforest, giving visitors a different experience as they pass from one zone to the next.
It will be lit at night to offer a different experience. This boardwalk will replace the original pedestrian path along the causeway bridge to the island that was closed in August 2007 for the construction of the second bridge.
BY NEXT November, visitors to Sentosa will have another option of getting to the resort island - on foot. A new 620-m boardwalk with five pairs of covered travellators will make the journey a breeze.
The walkway will link up to Sentosa's integrated resort, Resorts World at Sentosa, which will direct visitors to the resort or to attractions within the rest of the island. -- ST PHOTOS: SENTOSA LEISURE GROUPWorks on the $70-million boardwalk kicked off on Tuesday.
Ranging from 25m to 40m in width, the walkway will also be lined with retail and food and beverage outlets along the way.
The walkway will link up to Sentosa's integrated resort, Resorts World at Sentosa, which will direct visitors to the resort or to attractions within the rest of the island. It is designed to carry 8,000 visitors per hour in each direction and is part of the resort island's plans to enhance transport links as it gears up for a surge in visitors when the IR opens early next year.The boardwalk, said Sentosa Leisure Group's chief executive officer Mike Barclay, is part of a $300-million budget to overhaul the transport links on the island to ensure that it can receive the increase in visitors, which is expected to double.
The walkway will offer five different themed gardens, from mangrove, rock garden, terrain and hill, coastal flora and rainforest, giving visitors a different experience as they pass from one zone to the next.It will be lit at night to offer a different experience. This boardwalk will replace the original pedestrian path along the causeway bridge to the island that was closed in August 2007 for the construction of the second bridge.
Suburban Condos Drawing Buyers
Source : The Straits Times, July 28 2009
They could be paying prices seen in prime areas due to current euphoria.
IN THE latest sign of the buoyant suburban property market, home hunters in Ang Mo Kio have been submitting cheques to buy homes at prices rarely seen outside Singapore's prime central areas.
IN ANG MO KIO: Prices for Centro Residences are said to start from $1,150 per sq ft. -- PHOTO: FAR EAST ORGANIZATION.
Buyers are said to be paying prices starting from $1,150 per sq ft (psf) for the upcoming 329-unit Centro Residences by Far East Organization.
This means two-bedroom units cost more than $800,000, while three-bedroom apartments will cost $1.1 million and above.
Consultants said the Centro Residences is one of the few 99-year leasehold projects in the suburban areas that has crossed this level.
Jones Lang LaSalle's head of South-east Asia research, Dr Chua Yang Liang, said he was 'a bit shocked' by the pricing.
'I'm afraid at this moment there's a lot of euphoria, so there will be demand for this project even at this price,' he said.
Plus points for the project include its location in a popular mature estate right next to the Ang Mo Kio MRT station, as well as its proximity to international schools.
But Dr Chua voiced concern over the 'long-term sustainability of this pricing', saying that upgraders may not be able to afford it.
At another suburban condo, Optima, located next to the Tanah Merah MRT station, more than 40 people lined up yesterday afternoon to stake claim on the 297 units for sale, even before the showflat opens on Friday.
Many of those in the Optima queue were property agents holding places for their clients with blank cheques in hand.
However, some in the queue were possibly property agents lining up with a view to buying properties for their own investment purposes.
Pricing for the 99-year leasehold project has not even been finalised, according to developer TID, a tie-up between Hong Leong Group and Japan's Mitsui Fudosan.
Agents estimate that prices will be about $750 to $850 psf, with two-bedroom units going for about $600,000 to $700,000 and three-bedroom units from $700,000 to over $800,000.
They say buyers are so keen on the units that they have submitted blank cheques for them to fill in the amounts once the price list is available - a fairly common tactic in a boom market, and one that has resurfaced in recent weeks.
TID was alerted to the existence of the queue at about 5pm yesterday. At 10pm last night, TID representatives told those in the queue to go home, saying that the queue would not be recognised. The queue soon dispersed.
'We're not going to sell anything until Friday,' a Hong Leong spokesman had said earlier. A preview would be held for Hong Leong and TID staff on Thursday.
Last week, Hong Leong said in a press release that more than 1,000 inquiries have come in for Optima, which it said was 'the last condominium site available in the vicinity' of the Tanah Merah area.
With developers starting to tentatively raise prices for projects on the back of strong demand, Jones Lang LaSalle's Dr Chua warned that these price increases 'need to be supported by economic growth or wage growth in the long term', or they may lead to 'excess inflation' and a property bubble.
Far East will start its preview of Centro tomorrow and will release two-bedroom and three-bedroom units. Agents say some buyers have already written cheques to register their interest.
One reason for the relatively high price of Centro is the cost of the land. Far East bought the state-owned site in September 2007 for $601 psf of potential gross floor area, a record price for suburban condo land.
Over the weekend, suburban condos continued to do fairly well. Far East sold another 59 units at its Waterfront Key condo in Bedok Reservoir, bringing the total number of units sold to 278. The average price was $735 psf.
UOL Group also sold 70 units at Meadows@Peirce in Upper Thomson over the weekend, after selling 180 units on the first day of sales on Friday. The buyers, mainly Singaporeans, paid an average of $880 psf.
But weekend sales were slower at mid-tier projects closer to the city. Far East sold five units of Silversea in Amber Road at an average price of $1,380 psf, for a total of 59 units sold so far. At its Vista Residences in Thomson, seven more units were sold at prices starting from $1,100 psf, bringing total units sold to 144.
They could be paying prices seen in prime areas due to current euphoria.
IN THE latest sign of the buoyant suburban property market, home hunters in Ang Mo Kio have been submitting cheques to buy homes at prices rarely seen outside Singapore's prime central areas.
IN ANG MO KIO: Prices for Centro Residences are said to start from $1,150 per sq ft. -- PHOTO: FAR EAST ORGANIZATION.Buyers are said to be paying prices starting from $1,150 per sq ft (psf) for the upcoming 329-unit Centro Residences by Far East Organization.
This means two-bedroom units cost more than $800,000, while three-bedroom apartments will cost $1.1 million and above.
Consultants said the Centro Residences is one of the few 99-year leasehold projects in the suburban areas that has crossed this level.
Jones Lang LaSalle's head of South-east Asia research, Dr Chua Yang Liang, said he was 'a bit shocked' by the pricing.
'I'm afraid at this moment there's a lot of euphoria, so there will be demand for this project even at this price,' he said.
Plus points for the project include its location in a popular mature estate right next to the Ang Mo Kio MRT station, as well as its proximity to international schools.
But Dr Chua voiced concern over the 'long-term sustainability of this pricing', saying that upgraders may not be able to afford it.
At another suburban condo, Optima, located next to the Tanah Merah MRT station, more than 40 people lined up yesterday afternoon to stake claim on the 297 units for sale, even before the showflat opens on Friday.
Many of those in the Optima queue were property agents holding places for their clients with blank cheques in hand.
However, some in the queue were possibly property agents lining up with a view to buying properties for their own investment purposes.
Pricing for the 99-year leasehold project has not even been finalised, according to developer TID, a tie-up between Hong Leong Group and Japan's Mitsui Fudosan.
Agents estimate that prices will be about $750 to $850 psf, with two-bedroom units going for about $600,000 to $700,000 and three-bedroom units from $700,000 to over $800,000.
They say buyers are so keen on the units that they have submitted blank cheques for them to fill in the amounts once the price list is available - a fairly common tactic in a boom market, and one that has resurfaced in recent weeks.
TID was alerted to the existence of the queue at about 5pm yesterday. At 10pm last night, TID representatives told those in the queue to go home, saying that the queue would not be recognised. The queue soon dispersed.
'We're not going to sell anything until Friday,' a Hong Leong spokesman had said earlier. A preview would be held for Hong Leong and TID staff on Thursday.
Last week, Hong Leong said in a press release that more than 1,000 inquiries have come in for Optima, which it said was 'the last condominium site available in the vicinity' of the Tanah Merah area.
With developers starting to tentatively raise prices for projects on the back of strong demand, Jones Lang LaSalle's Dr Chua warned that these price increases 'need to be supported by economic growth or wage growth in the long term', or they may lead to 'excess inflation' and a property bubble.
Far East will start its preview of Centro tomorrow and will release two-bedroom and three-bedroom units. Agents say some buyers have already written cheques to register their interest.
One reason for the relatively high price of Centro is the cost of the land. Far East bought the state-owned site in September 2007 for $601 psf of potential gross floor area, a record price for suburban condo land.
Over the weekend, suburban condos continued to do fairly well. Far East sold another 59 units at its Waterfront Key condo in Bedok Reservoir, bringing the total number of units sold to 278. The average price was $735 psf.
UOL Group also sold 70 units at Meadows@Peirce in Upper Thomson over the weekend, after selling 180 units on the first day of sales on Friday. The buyers, mainly Singaporeans, paid an average of $880 psf.
But weekend sales were slower at mid-tier projects closer to the city. Far East sold five units of Silversea in Amber Road at an average price of $1,380 psf, for a total of 59 units sold so far. At its Vista Residences in Thomson, seven more units were sold at prices starting from $1,100 psf, bringing total units sold to 144.
漏夜冒雨排队为了什么？
Source : 《联合早报》July 28, 2009
尽管昨晚下着绵绵细雨，丹那美拉地铁站附近仍出现撑着伞的人龙，究竟是为什么？
26岁的法义斯（餐饮业职员）告诉本报，丹那美拉地铁站旁空地的新公寓项目即将展开发售，朋友有兴趣购买，所以替朋友排队。他的女友和另外三名朋友也到场凑热闹。
这个由丰隆集团发展的公寓Optima@Tanah Merah在本星期五才开始发售，昨晚却已有超过60人在发展地段外漏夜排队。（曾坤顺摄）
“我不知道公寓单位价格多少，朋友的太太怀孕了，叫我帮他排队，我帮个忙。感觉就像是排队拿国庆庆典入门票。”
据了解，人潮一般在公寓项目发售的前一两天才出现。
这个由丰隆集团发展的公寓Optima@Tanah Merah在本星期五才开始发售，昨晚却已有超过60人在发展地段外漏夜排队，好些人似乎是代朋友或亲戚排队，但一些人是因好奇而来凑热闹。
人龙中的王姓男子（61岁，退休人士）受访说，38岁的儿子对公寓有兴趣，所以特地从油池开车到这里代儿子排队。他说：“好些亲戚都住在四美这一带，所以儿子想在这里买一间房子。”
房地产中介商也在场分派排队号码给有兴趣购屋者。一名声称“被分到60多号却不晓得发生什么事的”杨姓男子说，听说该处有人潮，就和朋友一起来看看。“新加坡就是这样的，看到人家排队，其他人通常会加入队伍，说不定有免费赠品拿。”
2007年房地产市场正热得火红时，也曾出现公众在公寓项目发售前五天开始排队的现象。
当时，许多公众声称，如果转手成功，购屋者可能赚取高达15万元的利润。
2006年地产市场活跃时，排队买房子现象相当普遍。
当时，排队者当中还包括代客户排队的房地产经纪，甚至还有“专业排队者”——受房地产经纪所雇，帮房地产经纪排队赚外快的学生。
尽管昨晚下着绵绵细雨，丹那美拉地铁站附近仍出现撑着伞的人龙，究竟是为什么？
26岁的法义斯（餐饮业职员）告诉本报，丹那美拉地铁站旁空地的新公寓项目即将展开发售，朋友有兴趣购买，所以替朋友排队。他的女友和另外三名朋友也到场凑热闹。
这个由丰隆集团发展的公寓Optima@Tanah Merah在本星期五才开始发售，昨晚却已有超过60人在发展地段外漏夜排队。（曾坤顺摄）“我不知道公寓单位价格多少，朋友的太太怀孕了，叫我帮他排队，我帮个忙。感觉就像是排队拿国庆庆典入门票。”
据了解，人潮一般在公寓项目发售的前一两天才出现。
这个由丰隆集团发展的公寓Optima@Tanah Merah在本星期五才开始发售，昨晚却已有超过60人在发展地段外漏夜排队，好些人似乎是代朋友或亲戚排队，但一些人是因好奇而来凑热闹。
人龙中的王姓男子（61岁，退休人士）受访说，38岁的儿子对公寓有兴趣，所以特地从油池开车到这里代儿子排队。他说：“好些亲戚都住在四美这一带，所以儿子想在这里买一间房子。”
房地产中介商也在场分派排队号码给有兴趣购屋者。一名声称“被分到60多号却不晓得发生什么事的”杨姓男子说，听说该处有人潮，就和朋友一起来看看。“新加坡就是这样的，看到人家排队，其他人通常会加入队伍，说不定有免费赠品拿。”
2007年房地产市场正热得火红时，也曾出现公众在公寓项目发售前五天开始排队的现象。
当时，许多公众声称，如果转手成功，购屋者可能赚取高达15万元的利润。
2006年地产市场活跃时，排队买房子现象相当普遍。
当时，排队者当中还包括代客户排队的房地产经纪，甚至还有“专业排队者”——受房地产经纪所雇，帮房地产经纪排队赚外快的学生。
一些城市楼价暴涨 中国中央高度关注
Source : 《联合早报》July 27, 2009
（北京综合讯）今年6月以来，中国部分城市出现地王和房价暴涨，引起中央高度关注。据报道，最近，中国国务院有关部门两度召开座谈会，调研房地产市场形势。
国务院并批示要求在今后一段时间内对房地产市场加强市场监控及分析，对市场中的新情况新问题，要做到“时时汇报”。接近住房与城乡建设部人士称，这条批示是近期房地产市场政策的基本原则。
但有关人士表示，房地产政策目前还不会进行全局性调整。针对最近“地王”频出和部分城市房价快速上涨的情况，相关政策将做局部调整，主要办法是控制第二套房贷和增加供应。
据《经济观察报》、《中国经营报》等的报道，有关各方对房价的判断分歧颇大，但维护房地产回暖态势、防止涨价蔓延已成为各方共识。
报道称，本月21日，国务院研究室召集业界人士召开房地产市场形势座谈会，就“房价、地价、投资及热点城市”等内容听取各方意见。
而此前的本月9日，国务院领导主持召开经济形势座谈会，其中也就房地产市场的情况听取建议。在该次座谈会上，国务院高层领导在关心房地产行业各项指标回暖的同时，对房价和“地王”现象提出了疑问。与此同时，一份关于房地产运行情况的汇报，也在得到国务院分管领导批示后，被转发给住房和城乡建设部(下称建设部)以及所有省级政府。
今年春节后，中国各地楼市出现回暖。一方面，宽松的信贷政策，刺激了购房需求的释放；其次，一些地方地价开始回升，北京、上海、广州等再度出现高价“地王”；再次，出于对后市的谨慎，开发商投资普遍谨慎，未来可能出现供给不足的情况。
国务院批示：加强监测与分析
针对以上情况，由新华社牵头的一份研究报告，已提交国务院相关部门。国务院主要领导批示：“加强监测与分析。”
据报道，在两次座谈会上，由于各方意见分歧明显，目前中央政府仍在研究阶段，维持回暖的全局政策尚未改变。
据透露，在本月9日国务院召集的座谈会上，两种意见较为突出，一是继续维持房地产市场的回暖态势，支持经济复苏；二是目前房价上涨过快，应加强宏观调控，防止房价暴涨。
与会人士称，在本月21日的座谈会上，主要有三种观点：部分学界人士认为应当立即进行调控，控制房价上涨；而企业界人士认为，应继续维持宽松的信贷环境，防止房地产投资再度下滑；房地产协会组织则认为，目前的问题是局部问题应当引起重视防止蔓延，但不应做全局性调整。
在21日的座谈会上，有关机构建议政府部门应当在继续稳定现有政策的同时，对部分房价上涨较快的城市采取措施，防止房价上涨全面蔓延。具体办法是加强地方政府的职责，严格控制第二套房贷，增加土地供给以确保未来商品房供应。
另外，据报道，接近住房与城乡建设部的专家称，上半年楼市的回暖对保增长起到了重要作用，部分城市房价上涨较快，不应扩大为全局问题，应因地制宜予以解决。
相关人士透露，房地产政策目前还不会进行全局性调整。针对最近“地王”频出和部分城市房价快速上涨情况，相关政策将作局部调整，主要控制第二套房贷和增加供应。
报道还称，国务院会议材料已转发各省市，并对部分城市起到了督促作用。在本月9日会议之后，北京市有关部门约谈了多家开发商，并在23日处罚了三家开发商。另据北京市国土局官员透露，北京市正在酝酿放开土地供应的具体政策。
另一方面，《新京报》报道，自国土部公布“中国地价占房价平均为23.2%”的数据以来，业界一直对该数字存有异议。前日，该部将全国620个调查项目的数据悉数发布，其中北京的21个项目中，地价最高占房价的比例为51.36%，最低为14.33%。据公布的数据计算，北京21个项目平均地价与房价的比例约为25%。
在620个案例中，销售房价最高为人民币（下同）4万5000元（9400新元）/平米，最低为1130元/平米；地价占房价最低比例为5.3%，最高为58.6%。
58.6%的高地价比来自河北石家庄的新公爵项目，其楼面地价为每平米3869元，开盘平均售价为每平米6600元。
（北京综合讯）今年6月以来，中国部分城市出现地王和房价暴涨，引起中央高度关注。据报道，最近，中国国务院有关部门两度召开座谈会，调研房地产市场形势。
国务院并批示要求在今后一段时间内对房地产市场加强市场监控及分析，对市场中的新情况新问题，要做到“时时汇报”。接近住房与城乡建设部人士称，这条批示是近期房地产市场政策的基本原则。
但有关人士表示，房地产政策目前还不会进行全局性调整。针对最近“地王”频出和部分城市房价快速上涨的情况，相关政策将做局部调整，主要办法是控制第二套房贷和增加供应。
据《经济观察报》、《中国经营报》等的报道，有关各方对房价的判断分歧颇大，但维护房地产回暖态势、防止涨价蔓延已成为各方共识。
报道称，本月21日，国务院研究室召集业界人士召开房地产市场形势座谈会，就“房价、地价、投资及热点城市”等内容听取各方意见。
而此前的本月9日，国务院领导主持召开经济形势座谈会，其中也就房地产市场的情况听取建议。在该次座谈会上，国务院高层领导在关心房地产行业各项指标回暖的同时，对房价和“地王”现象提出了疑问。与此同时，一份关于房地产运行情况的汇报，也在得到国务院分管领导批示后，被转发给住房和城乡建设部(下称建设部)以及所有省级政府。
今年春节后，中国各地楼市出现回暖。一方面，宽松的信贷政策，刺激了购房需求的释放；其次，一些地方地价开始回升，北京、上海、广州等再度出现高价“地王”；再次，出于对后市的谨慎，开发商投资普遍谨慎，未来可能出现供给不足的情况。
国务院批示：加强监测与分析
针对以上情况，由新华社牵头的一份研究报告，已提交国务院相关部门。国务院主要领导批示：“加强监测与分析。”
据报道，在两次座谈会上，由于各方意见分歧明显，目前中央政府仍在研究阶段，维持回暖的全局政策尚未改变。
据透露，在本月9日国务院召集的座谈会上，两种意见较为突出，一是继续维持房地产市场的回暖态势，支持经济复苏；二是目前房价上涨过快，应加强宏观调控，防止房价暴涨。
与会人士称，在本月21日的座谈会上，主要有三种观点：部分学界人士认为应当立即进行调控，控制房价上涨；而企业界人士认为，应继续维持宽松的信贷环境，防止房地产投资再度下滑；房地产协会组织则认为，目前的问题是局部问题应当引起重视防止蔓延，但不应做全局性调整。
在21日的座谈会上，有关机构建议政府部门应当在继续稳定现有政策的同时，对部分房价上涨较快的城市采取措施，防止房价上涨全面蔓延。具体办法是加强地方政府的职责，严格控制第二套房贷，增加土地供给以确保未来商品房供应。
另外，据报道，接近住房与城乡建设部的专家称，上半年楼市的回暖对保增长起到了重要作用，部分城市房价上涨较快，不应扩大为全局问题，应因地制宜予以解决。
相关人士透露，房地产政策目前还不会进行全局性调整。针对最近“地王”频出和部分城市房价快速上涨情况，相关政策将作局部调整，主要控制第二套房贷和增加供应。
报道还称，国务院会议材料已转发各省市，并对部分城市起到了督促作用。在本月9日会议之后，北京市有关部门约谈了多家开发商，并在23日处罚了三家开发商。另据北京市国土局官员透露，北京市正在酝酿放开土地供应的具体政策。
另一方面，《新京报》报道，自国土部公布“中国地价占房价平均为23.2%”的数据以来，业界一直对该数字存有异议。前日，该部将全国620个调查项目的数据悉数发布，其中北京的21个项目中，地价最高占房价的比例为51.36%，最低为14.33%。据公布的数据计算，北京21个项目平均地价与房价的比例约为25%。
在620个案例中，销售房价最高为人民币（下同）4万5000元（9400新元）/平米，最低为1130元/平米；地价占房价最低比例为5.3%，最高为58.6%。
58.6%的高地价比来自河北石家庄的新公爵项目，其楼面地价为每平米3869元，开盘平均售价为每平米6600元。
Sunday, July 26, 2009
Negative Take-Up Shrinks In Q2: URA
Source : The Business Times, July 25, 2009
THE office market has posted a third consecutive quarter of negative take-up, according to government data for Q2. However, the negative take-up of 247,570 square feet in the second quarter was smaller than the 322,917 sq ft in Q1 and the 365,973 sq ft in Q4 last year.
CB Richard Ellis executive director Li Hiaw Ho expects take-up to remain in negative territory for the rest of the year. 'The impact of downsizing will be felt in the office sector for the next six months at least.'
Urban Redevelopment Authority (URA) figures show that the islandwide vacancy rate for offices continued to increase, hitting 10.8 per cent as at end-Q2 2009, compared with 10 per cent at end-Q1 2009 and a low of 7.3 per cent in second half 2007.
The vacancy rate for Category 1 space - office space in buildings in the 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 - was 6 per cent at end-Q2, up from 5.3 per cent at end-Q1. The vacancy rate for Cat 2 space (the rest of Singapore's office stock) rose from 11 per cent at end-Q1 to 11.9 per cent at end-Q2.
The median rental contracted in Q2 for Cat 1 offices was $10.59 per square foot per month, down 8.4 per cent from the preceding quarter. The drop was smaller than a 12 per cent decline in Q1.
However, the median rental for Cat 2 space fell 7.6 per cent to $5.11 psf per month in Q2 - a bigger fall compared with the 6.9 per cent drop in Q1.
Cat 1 median rental has eased nearly 28 per cent from the peak of $14.70 psf in Q2 2008. Over the same period, the Cat 2 median rental has slipped 21 per cent.
Looking ahead, property consultants are predicting gentler declines in office rents for the rest of 2009, while cautioning that the office market is unlikely to be out of the woods until demand turns positive.
In the retail property sector, the completion of ION Orchard and Orchard Central caused the vacancy rate for shop space in the Orchard Planning Area to spike to 16.2 per cent at end-Q2 from 4.7 per cent a quarter earlier. URA pointed to the lag time taken for tenants to retrofit and occupy the shop space in the newly completed malls.
CBRE's Mr Li said: 'These new malls already have high pre-commitment levels and vacancy rates in Orchard should move back to the 90 per cent level within a year, once tenants have moved in and started operations.'
The median rental signed in Q2 eased 2.4 per cent over Q1 in Orchard and Rest of City Area and fell a smaller one per cent in Outside City Area.
URA's rental indices for flatted factories and warehouses slid 4.2 per cent and 9.2 per cent respectively in Q2 over Q1. Warehouse vacancy rate rose from 7 per cent in Q1 to 9 per cent in Q2. Factory vacancy increased from 7 per cent to 7.8 per cent over the same period.
THE office market has posted a third consecutive quarter of negative take-up, according to government data for Q2. However, the negative take-up of 247,570 square feet in the second quarter was smaller than the 322,917 sq ft in Q1 and the 365,973 sq ft in Q4 last year.
CB Richard Ellis executive director Li Hiaw Ho expects take-up to remain in negative territory for the rest of the year. 'The impact of downsizing will be felt in the office sector for the next six months at least.'
Urban Redevelopment Authority (URA) figures show that the islandwide vacancy rate for offices continued to increase, hitting 10.8 per cent as at end-Q2 2009, compared with 10 per cent at end-Q1 2009 and a low of 7.3 per cent in second half 2007.
The vacancy rate for Category 1 space - office space in buildings in the 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 - was 6 per cent at end-Q2, up from 5.3 per cent at end-Q1. The vacancy rate for Cat 2 space (the rest of Singapore's office stock) rose from 11 per cent at end-Q1 to 11.9 per cent at end-Q2.
The median rental contracted in Q2 for Cat 1 offices was $10.59 per square foot per month, down 8.4 per cent from the preceding quarter. The drop was smaller than a 12 per cent decline in Q1.
However, the median rental for Cat 2 space fell 7.6 per cent to $5.11 psf per month in Q2 - a bigger fall compared with the 6.9 per cent drop in Q1.
Cat 1 median rental has eased nearly 28 per cent from the peak of $14.70 psf in Q2 2008. Over the same period, the Cat 2 median rental has slipped 21 per cent.
Looking ahead, property consultants are predicting gentler declines in office rents for the rest of 2009, while cautioning that the office market is unlikely to be out of the woods until demand turns positive.
In the retail property sector, the completion of ION Orchard and Orchard Central caused the vacancy rate for shop space in the Orchard Planning Area to spike to 16.2 per cent at end-Q2 from 4.7 per cent a quarter earlier. URA pointed to the lag time taken for tenants to retrofit and occupy the shop space in the newly completed malls.
CBRE's Mr Li said: 'These new malls already have high pre-commitment levels and vacancy rates in Orchard should move back to the 90 per cent level within a year, once tenants have moved in and started operations.'
The median rental signed in Q2 eased 2.4 per cent over Q1 in Orchard and Rest of City Area and fell a smaller one per cent in Outside City Area.
URA's rental indices for flatted factories and warehouses slid 4.2 per cent and 9.2 per cent respectively in Q2 over Q1. Warehouse vacancy rate rose from 7 per cent in Q1 to 9 per cent in Q2. Factory vacancy increased from 7 per cent to 7.8 per cent over the same period.
Next Year May Not See Oversupply Of Homes
Source : The Straits Times, July 25, 2009
GLUT? What glut? Fears of an oversupply of private homes next year have eased - in fact there could even be a shortage.
The Urban Redevelopment Authority's (URA) second quarter real estate statistics, released yesterday, suggest any potential oversupply has been pushed back to 2011 or even later as private property developers delay and cut down on projects.
The number of private homes slated for completion for the whole of next year has fallen sharply to just 5,394.
That is down about 70 per cent from an estimated 17,454 early last year at the height of the last boom.
Just as developers have cut back on building, home buying has shot back up to boom-time levels.
For the past three months, more than 1,000 private homes have been sold each month. An average of 8,000 private homes have been sold each year since 2000.
This means that private home prices and rents could rise next year, as the supply of private property units in 2010 may not meet demand, especially if the current strong sales streak keeps up.
Caveats apply, of course, market watchers say. URA's statistics rely on figures that developers have provided, and dramatic changes from quarter to quarter have occurred before.
Also, the number of completed units could differ from the number sold, as developers could sell uncompleted units or be unable to sell completed units.
According to URA statistics, during the last boom in 2007 and last year, developers - confident that people would snap up private homes - obtained licences to sell 11,150 private homes set to be finished this year, and 9,188 homes in 2010.
But the collapse of Lehman Brothers last September and the resulting recession triggered fears last year that there would be too many private homes on the market next year amid an economic slowdown.
Concerned that units would not sell, developers have since slashed some projects and pushed back the completion dates of others. As a result, URA's figure for the total planned units slated for completion this year and beyond has fallen by 6,000 - from over 68,000 in the first quarter of 2008 to the current 62,350.
But although almost all of URA's projected completion figures have declined gradually over the period from the third quarter of last year to the first quarter this year, the slide shows signs of having just bottomed out.
In the third quarter of last year it was projected that around 13,400-16,000 units would be completed every year after 2010. This fell to a range of 12,100-13,900 in the fourth quarter and then to 10,900-13,800 last quarter.
Although it still remains below pre-recession levels, this range has risen slightly in the last quarter to 11,200-13,600 units every year from 2011 onwards.
The bulk of project completions has been shifted from next year to 2011 and later, with project completion figures increasing by an average of 350 for each year from last quarter's figures.
To date, 5,158 private units have been finished in the first half of this year, and URA expects 1,051 more units to be ready within the next six months.
GLUT? What glut? Fears of an oversupply of private homes next year have eased - in fact there could even be a shortage.
The Urban Redevelopment Authority's (URA) second quarter real estate statistics, released yesterday, suggest any potential oversupply has been pushed back to 2011 or even later as private property developers delay and cut down on projects.
The number of private homes slated for completion for the whole of next year has fallen sharply to just 5,394.
That is down about 70 per cent from an estimated 17,454 early last year at the height of the last boom.
Just as developers have cut back on building, home buying has shot back up to boom-time levels.
For the past three months, more than 1,000 private homes have been sold each month. An average of 8,000 private homes have been sold each year since 2000.
This means that private home prices and rents could rise next year, as the supply of private property units in 2010 may not meet demand, especially if the current strong sales streak keeps up.
Caveats apply, of course, market watchers say. URA's statistics rely on figures that developers have provided, and dramatic changes from quarter to quarter have occurred before.
Also, the number of completed units could differ from the number sold, as developers could sell uncompleted units or be unable to sell completed units.
According to URA statistics, during the last boom in 2007 and last year, developers - confident that people would snap up private homes - obtained licences to sell 11,150 private homes set to be finished this year, and 9,188 homes in 2010.
But the collapse of Lehman Brothers last September and the resulting recession triggered fears last year that there would be too many private homes on the market next year amid an economic slowdown.
Concerned that units would not sell, developers have since slashed some projects and pushed back the completion dates of others. As a result, URA's figure for the total planned units slated for completion this year and beyond has fallen by 6,000 - from over 68,000 in the first quarter of 2008 to the current 62,350.
But although almost all of URA's projected completion figures have declined gradually over the period from the third quarter of last year to the first quarter this year, the slide shows signs of having just bottomed out.
In the third quarter of last year it was projected that around 13,400-16,000 units would be completed every year after 2010. This fell to a range of 12,100-13,900 in the fourth quarter and then to 10,900-13,800 last quarter.
Although it still remains below pre-recession levels, this range has risen slightly in the last quarter to 11,200-13,600 units every year from 2011 onwards.
The bulk of project completions has been shifted from next year to 2011 and later, with project completion figures increasing by an average of 350 for each year from last quarter's figures.
To date, 5,158 private units have been finished in the first half of this year, and URA expects 1,051 more units to be ready within the next six months.
HDB Prices Up 1.4 Per Cent
Source : The Business Times, July 25, 2009
Decline in upfront cash required makes resale flats more affordable
PRICES of Housing Board flats rose 1.4 per cent in the second quarter to a record high, reversing a first-quarter dip of 0.8 per cent.
The number of transactions also soared - up 58 per cent in the three months to June 30 - as confidence grew and buyers rushed back into the market.
One reason for the HDB market's resilience amid testing economic times is the decline in the amount of cash required upfront to buy a resale flat. This amount is called cash-over-valuation (COV) and is falling or at least stable across all flat types.
Fresh figures released by HDB yesterday showed that the median COV for all flat types fell to just $3,000 in the second quarter compared with $4,000 in the first quarter. The median COV is at a relatively low $5,000 for three- and four-roomers and stayed at zero for five-room and executive flats, for both the first and second quarter.
Median COV for two-roomers declined from $7,000 in the first quarter to $6,000 in the second.
This is a marked change from the 2007 property boom, when median COV hit $22,000 in the fourth quarter, pricing many first-time buyers out of the resale market.
COV has come down due to valuations of resale flats catching up, said ERA Asia Pacific associate director Eugene Lim.
So even though values of HDB resale flats are high, they have become more affordable as buyers can get bank loans for the purchase and do not have to fork out high amounts of cash.
Sales activity was robust in the quarter with transactions up to 10,184 compared with 6,446 in the first quarter. They were also up 31 per cent from the 7,763 units sold in the same period last year.
Sales of five-roomers rose 80 per cent - 2,713 were moved - over the first quarter while executive flat transactions surged 100 per cent to 753. Four-room flat sales climbed from 2,488 to 3,787.
PropNex chief executive Mohamed Ismail noted that sales of the bigger flat types had suffered in the three quarters up to the end of March amid growing concerns about Singapore's worst recession.
'These numbers are a clear sign that people's market confidence is growing,' he said, adding that feedback on the ground indicated that demand in mature estates far exceeds supply.
The sales of larger flat types also explain the strong demand from HDB upgraders who sold their flats to buy private homes, said property veteran Nicholas Mak.
Private home sales, especially in mass-market suburban condos, have enjoyed brisk sales since February.
Meanwhile, HDB rents were stable. Median rents for two-room and five-room flats for the second quarter were unchanged but fell by $100 for three-room, four-room and executive flats.
HDB plans to launch a further 6,000 units under its build-to-order scheme over the next six months. About 2,400 will be three-room and smaller flats. The bulk of new flat supply will be in Punggol. So far, HDB has launched about 2,000 new flats in Punggol, Sengkang and Woodlands this year.
Analysts predict that HDB flat prices will enjoy modest increases as confidence continues to grow.
But the falling COV for large flats could indicate limited upside for prices of these flat types, said Mr Mak. 'This could also limit the HDB upgraders' demand for private property in the short term,' he said.
Decline in upfront cash required makes resale flats more affordable
PRICES of Housing Board flats rose 1.4 per cent in the second quarter to a record high, reversing a first-quarter dip of 0.8 per cent.
The number of transactions also soared - up 58 per cent in the three months to June 30 - as confidence grew and buyers rushed back into the market.
One reason for the HDB market's resilience amid testing economic times is the decline in the amount of cash required upfront to buy a resale flat. This amount is called cash-over-valuation (COV) and is falling or at least stable across all flat types.
Fresh figures released by HDB yesterday showed that the median COV for all flat types fell to just $3,000 in the second quarter compared with $4,000 in the first quarter. The median COV is at a relatively low $5,000 for three- and four-roomers and stayed at zero for five-room and executive flats, for both the first and second quarter.
Median COV for two-roomers declined from $7,000 in the first quarter to $6,000 in the second.
This is a marked change from the 2007 property boom, when median COV hit $22,000 in the fourth quarter, pricing many first-time buyers out of the resale market.
COV has come down due to valuations of resale flats catching up, said ERA Asia Pacific associate director Eugene Lim.
So even though values of HDB resale flats are high, they have become more affordable as buyers can get bank loans for the purchase and do not have to fork out high amounts of cash.
Sales activity was robust in the quarter with transactions up to 10,184 compared with 6,446 in the first quarter. They were also up 31 per cent from the 7,763 units sold in the same period last year.
Sales of five-roomers rose 80 per cent - 2,713 were moved - over the first quarter while executive flat transactions surged 100 per cent to 753. Four-room flat sales climbed from 2,488 to 3,787.
PropNex chief executive Mohamed Ismail noted that sales of the bigger flat types had suffered in the three quarters up to the end of March amid growing concerns about Singapore's worst recession.
'These numbers are a clear sign that people's market confidence is growing,' he said, adding that feedback on the ground indicated that demand in mature estates far exceeds supply.
The sales of larger flat types also explain the strong demand from HDB upgraders who sold their flats to buy private homes, said property veteran Nicholas Mak.
Private home sales, especially in mass-market suburban condos, have enjoyed brisk sales since February.
Meanwhile, HDB rents were stable. Median rents for two-room and five-room flats for the second quarter were unchanged but fell by $100 for three-room, four-room and executive flats.
HDB plans to launch a further 6,000 units under its build-to-order scheme over the next six months. About 2,400 will be three-room and smaller flats. The bulk of new flat supply will be in Punggol. So far, HDB has launched about 2,000 new flats in Punggol, Sengkang and Woodlands this year.
Analysts predict that HDB flat prices will enjoy modest increases as confidence continues to grow.
But the falling COV for large flats could indicate limited upside for prices of these flat types, said Mr Mak. 'This could also limit the HDB upgraders' demand for private property in the short term,' he said.
HDB Resale Flat Prices Surge To Record High
Source : The Business Times, July 25, 2009
Some industry watchers are predicting further upside for the year
THE HDB resale market seems to be chugging along nicely despite the recession. Soaring demand for resale flats sent prices to a record high in the second quarter, and some industry watchers are predicting further upside for the year.
APPRECIATING BLOCKS - Upgrading activity aside, the inflow of permanent residents, many from China and India, also contributed to demand for resale flats
Data from the Housing and Development Board yesterday showed the resale price index rising 1.4 per cent from the previous quarter to 140.2 in Q2. This is the highest level seen since 1990.
The increase surpassed HDB's flash estimate of a 1.2 per cent rise. It also reversed a 0.8 per cent fall in Q1 - the first slide after nine straight quarters of growth. The price dip in Q1 now seems like a 'statistical blip', said property consultant Nicholas Mak.
Executive flats saw the biggest percentage rise in median resale prices, up 2.2 per cent from a quarter ago to $455,000.
Strong interest in resale flats helped sustain the market. Buyers and sellers filed 10,184 resale applications in Q2 - swelling 58 per cent from Q1 and 31 per cent from a year ago. According to HDB, the quarterly resale registration volume last crossed the 10,000-mark more than four years ago - it was 11,562 in Q4, 2004.
Most of the 10,184 applications in Q2 were for four-room flats, followed by three-roomers and then five-roomers.
However, applications for executive flats showed the greatest increase, doubling from a quarter ago to 753 in Q2. Those for five-room flats also jumped 80 per cent to 2,713. The sharp surge in resale activity involving larger flats suggests that there were more owners who sold their flats to buy private homes, said Mr Mak.
Market analysts have flagged HDB upgraders as a significant group of buyers who revived the private property market. Many went for units in mass-market projects such as Mi Casa and Double Bay Residences.
C&H Realty managing director Albert Lu pointed out that owners of smaller flats are also moving to larger flats. Prices of five-room and executive flats have languished in the last few quarters, making the move more attractive, he said.
Upgrading activity aside, the inflow of permanent residents (PRs) also contributed to demand for resale flats. HSR Property Group chief operating officer Dennis Yong observed that his firm has up to 10 per cent more resale transactions involving PRs in the last few months, and many of them are from China and India.
Buyers remained unwilling to pay high premiums for HDB flats. The median cash-over-valuation (COV) was $3,000 across all flat types in Q2, down slightly from $4,000 in Q1. Notably, most five-room and executive flats were still unable to command any COV.
In a way, the low COV sustained demand for HDB resale flats, said PropNex CEO Mohamed Ismail. 'As the demand is strengthening quickly, sellers are expected to demand a higher COV.' Mr Ismail expects the resale price index to gain around 3 per cent to 145 points by the end of the year. C&H Realty's Mr Lu also projects a 2-3 per cent increase in resale prices.
Just a few months ago, property consultants had feared that HDB resale prices would drop as much as 10 per cent for the whole year. Signs of a stabilising economy and improved sentiment in the property market seem to have soothed nerves.
Statistics from the Urban Redevelopment Authority yesterday also painted a more calming picture. While prices in the residential, commercial and industrial sectors still fell in Q2, the declines were smaller than a quarter ago.
Some industry watchers are predicting further upside for the year
THE HDB resale market seems to be chugging along nicely despite the recession. Soaring demand for resale flats sent prices to a record high in the second quarter, and some industry watchers are predicting further upside for the year.
APPRECIATING BLOCKS - Upgrading activity aside, the inflow of permanent residents, many from China and India, also contributed to demand for resale flatsData from the Housing and Development Board yesterday showed the resale price index rising 1.4 per cent from the previous quarter to 140.2 in Q2. This is the highest level seen since 1990.
The increase surpassed HDB's flash estimate of a 1.2 per cent rise. It also reversed a 0.8 per cent fall in Q1 - the first slide after nine straight quarters of growth. The price dip in Q1 now seems like a 'statistical blip', said property consultant Nicholas Mak.
Executive flats saw the biggest percentage rise in median resale prices, up 2.2 per cent from a quarter ago to $455,000.
Strong interest in resale flats helped sustain the market. Buyers and sellers filed 10,184 resale applications in Q2 - swelling 58 per cent from Q1 and 31 per cent from a year ago. According to HDB, the quarterly resale registration volume last crossed the 10,000-mark more than four years ago - it was 11,562 in Q4, 2004.Most of the 10,184 applications in Q2 were for four-room flats, followed by three-roomers and then five-roomers.
However, applications for executive flats showed the greatest increase, doubling from a quarter ago to 753 in Q2. Those for five-room flats also jumped 80 per cent to 2,713. The sharp surge in resale activity involving larger flats suggests that there were more owners who sold their flats to buy private homes, said Mr Mak.
Market analysts have flagged HDB upgraders as a significant group of buyers who revived the private property market. Many went for units in mass-market projects such as Mi Casa and Double Bay Residences.
C&H Realty managing director Albert Lu pointed out that owners of smaller flats are also moving to larger flats. Prices of five-room and executive flats have languished in the last few quarters, making the move more attractive, he said.
Upgrading activity aside, the inflow of permanent residents (PRs) also contributed to demand for resale flats. HSR Property Group chief operating officer Dennis Yong observed that his firm has up to 10 per cent more resale transactions involving PRs in the last few months, and many of them are from China and India.
Buyers remained unwilling to pay high premiums for HDB flats. The median cash-over-valuation (COV) was $3,000 across all flat types in Q2, down slightly from $4,000 in Q1. Notably, most five-room and executive flats were still unable to command any COV.
In a way, the low COV sustained demand for HDB resale flats, said PropNex CEO Mohamed Ismail. 'As the demand is strengthening quickly, sellers are expected to demand a higher COV.' Mr Ismail expects the resale price index to gain around 3 per cent to 145 points by the end of the year. C&H Realty's Mr Lu also projects a 2-3 per cent increase in resale prices.
Just a few months ago, property consultants had feared that HDB resale prices would drop as much as 10 per cent for the whole year. Signs of a stabilising economy and improved sentiment in the property market seem to have soothed nerves.
Statistics from the Urban Redevelopment Authority yesterday also painted a more calming picture. While prices in the residential, commercial and industrial sectors still fell in Q2, the declines were smaller than a quarter ago.
Private Home Pices Fall 4.7% In Q2
Source : Channel NewsAsia, 24 July 2009
In data out on Friday, private home prices fell 4.7 per cent in the second quarter of this year, compared with the previous three months. This is the fourth straight quarter of falls, but it is much better than the record 14.1 per cent decline in the first quarter.
Private housing
Homebuyers have been turning up in growing numbers at property launches and analysts said this is due to increasing optimism that the worst may be over for the economy.
Nicholas Mak, property analyst, said: "I think many market participants expect inflation to start creeping in over the next one to two years and real estate is seen as a good hedge for inflation."
While overall prices have fallen, market watchers said they expect a bottoming out soon, with a rebound in the second half of this year.
In all, 4,654 new homes were sold last quarter, compared to a total sale of 4,264 units in 2008. But the number of transactions appears to be moderating.
Mr Mak said: "Sales have been very encouraging, with developers selling over 4,000 private homes. Reason is pent-up demand. Going forward, this kind of numbers in each quarter is not really sustainable.
"We will probably go back to 2,000-plus private homes sold in each quarter, which is what the market can probably sustain in the medium term," said Mr Mak.
Market watchers see this as a bottom-up recovery, led by the mass market private condominium sector, with participation mainly by Singaporeans. However, they expect a shift to the mid- to high-end condominium sector, with greater participation by foreigners.
Meanwhile, HDB resale prices have bucked the trend of declines, with prices rising 1.4 per cent in the April to June period. The number of transactions crossed the 10,000 mark for the first time since the last quarter of 2004. - CNA/so
In data out on Friday, private home prices fell 4.7 per cent in the second quarter of this year, compared with the previous three months. This is the fourth straight quarter of falls, but it is much better than the record 14.1 per cent decline in the first quarter.
Private housingHomebuyers have been turning up in growing numbers at property launches and analysts said this is due to increasing optimism that the worst may be over for the economy.
Nicholas Mak, property analyst, said: "I think many market participants expect inflation to start creeping in over the next one to two years and real estate is seen as a good hedge for inflation."
While overall prices have fallen, market watchers said they expect a bottoming out soon, with a rebound in the second half of this year.
In all, 4,654 new homes were sold last quarter, compared to a total sale of 4,264 units in 2008. But the number of transactions appears to be moderating.
Mr Mak said: "Sales have been very encouraging, with developers selling over 4,000 private homes. Reason is pent-up demand. Going forward, this kind of numbers in each quarter is not really sustainable.
"We will probably go back to 2,000-plus private homes sold in each quarter, which is what the market can probably sustain in the medium term," said Mr Mak.
Market watchers see this as a bottom-up recovery, led by the mass market private condominium sector, with participation mainly by Singaporeans. However, they expect a shift to the mid- to high-end condominium sector, with greater participation by foreigners.
Meanwhile, HDB resale prices have bucked the trend of declines, with prices rising 1.4 per cent in the April to June period. The number of transactions crossed the 10,000 mark for the first time since the last quarter of 2004. - CNA/so
UOL Sells 180 Units Of Meadows Condo
Source : The Business Times, July 25, 2009
UOL yesterday sold 180 of the 250 units made available at a private preview of its condominium Meadows@Peirce.
Units in the 479-unit freehold project in Upper Thomson Road were sold for an average of $880 per sq ft, the developer said. Of these, 87 three-bedroom units were sold for between $1.1 million and $1.5 million each.
IN DEMAND - The development, on what used to be the Green Meadows condominium site, comprises a 14-storey tower and three five-storey blocks
The development, on what used to be the Green Meadows condominium site, comprises a 14-storey tower and three five-storey blocks. Units range from 517 sq ft one-bedroom apartments to 3,068 sq ft five-bedroom penthouses. Ten of the 49 penthouses were sold at yesterday's preview.
UOL initially planned to release 150 units at the preview, but raised this to 250 due to demand, said group chief operating officer Liam Wee Sin.
At the official launch on Tuesday, 100 more units will be released at an average price of $880 psf. UOL is offering buyers an interest absorption scheme.
Mr Liam said that home sales have picked up strongly in recent months. 'The successful preview demonstrates the pent-up demand in the Thomson area for a new development,' he said.
Units at two 99-year leasehold condominiums - Far East Organization's Centro Residences at Ang Mo Kio and TID's Optima@Tanah Merah - are slated for release at previews next week.
UOL yesterday sold 180 of the 250 units made available at a private preview of its condominium Meadows@Peirce.
Units in the 479-unit freehold project in Upper Thomson Road were sold for an average of $880 per sq ft, the developer said. Of these, 87 three-bedroom units were sold for between $1.1 million and $1.5 million each.
IN DEMAND - The development, on what used to be the Green Meadows condominium site, comprises a 14-storey tower and three five-storey blocksThe development, on what used to be the Green Meadows condominium site, comprises a 14-storey tower and three five-storey blocks. Units range from 517 sq ft one-bedroom apartments to 3,068 sq ft five-bedroom penthouses. Ten of the 49 penthouses were sold at yesterday's preview.
UOL initially planned to release 150 units at the preview, but raised this to 250 due to demand, said group chief operating officer Liam Wee Sin.
At the official launch on Tuesday, 100 more units will be released at an average price of $880 psf. UOL is offering buyers an interest absorption scheme.
Mr Liam said that home sales have picked up strongly in recent months. 'The successful preview demonstrates the pent-up demand in the Thomson area for a new development,' he said.
Units at two 99-year leasehold condominiums - Far East Organization's Centro Residences at Ang Mo Kio and TID's Optima@Tanah Merah - are slated for release at previews next week.
Fragrance Group Buys Two More Properties
Source : The Business Times, July 25, 2009
PROPERTY and hotel firm Fragrance Group has bought two more properties, taking the total value of its acquisitions in the past month to close to $100 million. The company yesterday announced the acquisition of a 4,453-square-metre plot of land on Telok Kurau Road for $36.5 million and a 2,056-sq-m freehold site on Pasir Panjang Road for $23 million. The company's two other acquisitions since mid-June cost a total of $33.51 million.
Fragrance Group chief executive Koh Wee Meng declined to comment on the identities of the sellers and on his company's specific plans for the new acquisitions.
Construction and sale of the Telok Kurau development is expected to begin in the second half of FY2009. Meanwhile, said Mr Koh, tenancy at the 14 two-storey shophouses at the Pasir Panjang location will continue for a 'minimum of one to two years'.
The $59.5 million purchases cap a busy week for the company. On July 21, it acquired the seven-storey Premier Centre from Hong Leong Group for $18 million, or $1,076 per square foot (psf). The office block is located at the corner of Beach Road and Tan Quee Lan Street.
Early last month, the company was awarded the tender for a Short Street hotel site by the Urban Redevelopment Authority. Its winning bid of $15.51 million, or $353 psf, was 76 per cent higher than the $8.8 million trigger price, and 11 per cent more than the next highest bid.
Fragrance Group has launched more than 20 landed properties and apartments to date. Additionally, its Fragrance Hotel chain has 20 branches islandwide, including a hostel on Dunlop Street. In its latest financial results, the group posted an 11.4 per cent increase in net profit for the second quarter ended June 30 to $17.7 million. Turnover rose 33.1 per cent to $79.5 million. The group's shares closed six cents up at 61.5 cents yesterday.
PROPERTY and hotel firm Fragrance Group has bought two more properties, taking the total value of its acquisitions in the past month to close to $100 million. The company yesterday announced the acquisition of a 4,453-square-metre plot of land on Telok Kurau Road for $36.5 million and a 2,056-sq-m freehold site on Pasir Panjang Road for $23 million. The company's two other acquisitions since mid-June cost a total of $33.51 million.
Fragrance Group chief executive Koh Wee Meng declined to comment on the identities of the sellers and on his company's specific plans for the new acquisitions.
Construction and sale of the Telok Kurau development is expected to begin in the second half of FY2009. Meanwhile, said Mr Koh, tenancy at the 14 two-storey shophouses at the Pasir Panjang location will continue for a 'minimum of one to two years'.
The $59.5 million purchases cap a busy week for the company. On July 21, it acquired the seven-storey Premier Centre from Hong Leong Group for $18 million, or $1,076 per square foot (psf). The office block is located at the corner of Beach Road and Tan Quee Lan Street.
Early last month, the company was awarded the tender for a Short Street hotel site by the Urban Redevelopment Authority. Its winning bid of $15.51 million, or $353 psf, was 76 per cent higher than the $8.8 million trigger price, and 11 per cent more than the next highest bid.
Fragrance Group has launched more than 20 landed properties and apartments to date. Additionally, its Fragrance Hotel chain has 20 branches islandwide, including a hostel on Dunlop Street. In its latest financial results, the group posted an 11.4 per cent increase in net profit for the second quarter ended June 30 to $17.7 million. Turnover rose 33.1 per cent to $79.5 million. The group's shares closed six cents up at 61.5 cents yesterday.
Home Supply Pipeline Shrinks, Prices Stiffen
Source : The Business Times, July 25, 2009
However, URA price index for private homes still shows fall in Q2, confounding analysts
LATEST government numbers are offering clues as to why some developers are busy looking for land and nudging up home prices. The supply pipeline for private homes has shrunk, from about 71,600 units at end-Q2 last year to 62,600 units as at end-Q2 2009. The stock of unsold units in uncompleted projects with planning approvals has also contracted from about 43,500 units to around 38,500 units over the same period.
Developers had not acquired much residential land over the past year or so in the aftermath of the financial crisis but have enjoyed a spectacular revival in home sales over the past six months. Lately, however, two sites from the government reserve list were triggered for launch by developers.
Developers have also regained some pricing power of late. Urban Redevelopment Authority's (URA) price index for private homes fell 4.7 per cent in Q2 over the preceding quarter. The fall was less steep than the 5.9 per cent decline for the period that URA's flash estimate had shown earlier this month. The latest decline is also much less than the 14.1 per cent quarter-on-quarter price drop in Q1. While a debate rages on why URA's Q2 price index lags the price gains seen in the market during the period, property consultants are expecting further price increases in the current half.
'But we're not going to see runaway prices as there will be price resistance from buyers, especially in the upgraders market as there's the issue of affordability,' says Knight Frank chairman Tan Tiong Cheng. 'Developers will be mindful of competition from the secondary market as new projects are completed. From a consumer's viewpoint, if prices get too high, they could either give the market a miss or look for alternatives - like picking up a home from earlier investors who can afford to sell below developers' prices,' he said.
'There's another reason why prices are unlikely to run away, at least not in the mass market - and that's because the government has, under its reserve list, a substantial supply of land for this segment,' Mr Tan added.
Giving a more bullish take, Credo Real Estate managing director Karamjit Singh says private home prices started to turn in April/May and estimates that depending on market segment, prices have increased anywhere between 15 and 30 per cent from the bottom in Q1. He forecasts the total increase between April and year-end could be in the order of 20 to 60 per cent, with the biggest hikes in the high-end segment. 'So far, the home buying has been led mainly by Singaporeans and PRs. When foreigners and institutional funds buy in a bigger way, then momentum in the high-end residential sector will receive a boost.'
URA's real estate data yesterday showed a 79 per cent quarter-on-quarter jump in private home sales by developers to 4,654 units in Q2 - the third highest quarterly figure on record, according to CB Richard Ellis (CBRE). Significantly, there was a more even spread of sales across the regions in Q2, unlike Q1, when developer sales were concentrated in the Outside Central Region (OCR), where mass-market suburban condos are located.
In Q2, the Core Central Region (CCR), which includes the prime districts 9, 10 and 11, financial district and Sentosa Cove, accounted for 31.2 per cent of homes sold by developers. The Rest of Central Region (RCR) had a 39.2 per cent share, thanks to projects such as 8 @ Woodleigh, The Arte, The Mezzo and Vista Residences; while OCR's share was 29.6 per cent. The housing recovery is filtering up.
The momentum of sales in the secondary market was also strong, with 3,059 units sold in the resale market in Q2, almost three times the 1,144 units in Q1. Subsale deals more than doubled from 412 in Q1 to 940 in Q2. In the residential leasing market, 10,327 leases were contracted in the April-June period, 7.8 per cent above the 9,579 leases done in Jan-March, CBRE said. With more expats being hired on local terms or smaller housing allowances, rents continued to slide in Q2, albeit more moderately.
However, URA price index for private homes still shows fall in Q2, confounding analysts
LATEST government numbers are offering clues as to why some developers are busy looking for land and nudging up home prices. The supply pipeline for private homes has shrunk, from about 71,600 units at end-Q2 last year to 62,600 units as at end-Q2 2009. The stock of unsold units in uncompleted projects with planning approvals has also contracted from about 43,500 units to around 38,500 units over the same period.
Developers had not acquired much residential land over the past year or so in the aftermath of the financial crisis but have enjoyed a spectacular revival in home sales over the past six months. Lately, however, two sites from the government reserve list were triggered for launch by developers.
Developers have also regained some pricing power of late. Urban Redevelopment Authority's (URA) price index for private homes fell 4.7 per cent in Q2 over the preceding quarter. The fall was less steep than the 5.9 per cent decline for the period that URA's flash estimate had shown earlier this month. The latest decline is also much less than the 14.1 per cent quarter-on-quarter price drop in Q1. While a debate rages on why URA's Q2 price index lags the price gains seen in the market during the period, property consultants are expecting further price increases in the current half.
'But we're not going to see runaway prices as there will be price resistance from buyers, especially in the upgraders market as there's the issue of affordability,' says Knight Frank chairman Tan Tiong Cheng. 'Developers will be mindful of competition from the secondary market as new projects are completed. From a consumer's viewpoint, if prices get too high, they could either give the market a miss or look for alternatives - like picking up a home from earlier investors who can afford to sell below developers' prices,' he said.
'There's another reason why prices are unlikely to run away, at least not in the mass market - and that's because the government has, under its reserve list, a substantial supply of land for this segment,' Mr Tan added.
Giving a more bullish take, Credo Real Estate managing director Karamjit Singh says private home prices started to turn in April/May and estimates that depending on market segment, prices have increased anywhere between 15 and 30 per cent from the bottom in Q1. He forecasts the total increase between April and year-end could be in the order of 20 to 60 per cent, with the biggest hikes in the high-end segment. 'So far, the home buying has been led mainly by Singaporeans and PRs. When foreigners and institutional funds buy in a bigger way, then momentum in the high-end residential sector will receive a boost.'
URA's real estate data yesterday showed a 79 per cent quarter-on-quarter jump in private home sales by developers to 4,654 units in Q2 - the third highest quarterly figure on record, according to CB Richard Ellis (CBRE). Significantly, there was a more even spread of sales across the regions in Q2, unlike Q1, when developer sales were concentrated in the Outside Central Region (OCR), where mass-market suburban condos are located.
In Q2, the Core Central Region (CCR), which includes the prime districts 9, 10 and 11, financial district and Sentosa Cove, accounted for 31.2 per cent of homes sold by developers. The Rest of Central Region (RCR) had a 39.2 per cent share, thanks to projects such as 8 @ Woodleigh, The Arte, The Mezzo and Vista Residences; while OCR's share was 29.6 per cent. The housing recovery is filtering up.
The momentum of sales in the secondary market was also strong, with 3,059 units sold in the resale market in Q2, almost three times the 1,144 units in Q1. Subsale deals more than doubled from 412 in Q1 to 940 in Q2. In the residential leasing market, 10,327 leases were contracted in the April-June period, 7.8 per cent above the 9,579 leases done in Jan-March, CBRE said. With more expats being hired on local terms or smaller housing allowances, rents continued to slide in Q2, albeit more moderately.
Mass Market Buyers Prop Up Home Prices
Source : The Straits Times, July 25, 2009
Cheaper condos see smaller price declines; sales of big HDB flats up
THEY were shut out of the property market during the most recent boom in 2007, when furious demand for luxury homes drove up home prices far beyond their reach. Now, buyers of cheaper mass market homes - defined loosely as bigger HDB flats and condominiums in the suburbs - are back in the market with a vengeance.
What helped jam the brakes on the decline were suburban homes, which saw the smallest price drop compared to pricier prime and city-fringe. -- ST PHOTO: DESMOND WEE
They doubled their purchases of five-room and executive HDB flats between March and June, pushing overall HDB prices up 1.4 per cent to hit a new high in the quarter, according to Housing Board (HDB) data released on Friday.
Mass market buyers also picked up four out of every 10 private homes sold, a shopping spree that resulted in twice the number of homes being sold in the second quarter than the first quarter, said the Urban Redevelopment Authority (URA). The number of resales nearly trebled while sub-sales more than doubled.
The strong demand for cheaper condos meant that while private home prices still fell 4.7 per cent in the second quarter, it was a far smaller decline than the plunge of 14.1 per cent in the first quarter.
What helped jam the brakes on the decline were suburban homes, which saw the smallest price drop in the quarter - 2.3 per cent - compared to pricier prime and city-fringe properties, which saw prices fall by double that amount. Rents for private homes continued to fall 5.2 per cent in the quarter, though 8 per cent more leases were signed.
Consultants had actually expected prices to increase in the second quarter, as home buyers flooded back and developers started to selectively raise prices.
'Our own analysis showed that private home prices in the second quarter rose,' said DTZ's head of South-east Asia research Chua Chor Hoon. She said the price increases ranged from 3 per cent for some suburban resale homes, to 11 per cent for homes in the prime districts.
In response to queries, the URA said that while prices have risen in some projects, there were still other developments that saw prices fall in the quarter.
But private home prices are likely to show a definite pickup from the third quarter, consultants say. 'The second quarter will possibly be the last quarter of price declines,' said Ms Tay Huey Ying, director of research and advisory at property firm Colliers International.
'If developers remain cautious and tread carefully with price increases, this momentum in the market could continue. But if developers are impatient and jack up prices too quickly, that may hurt demand as buyers are still price-sensitive.'
Mr Nicholas Mak, a long-time property consultant, said he expects overall prices to show an increase in the second half of this year. His reasons: the recovery in global stock markets, relief buying due to a shorter-than-expected recession, and low interest rates that make property purchases look more attractive.
The outlook has also been boosted by the fact that demand is no longer restricted to the mass market, he said. In recent months, more buyers have been keen on mid-tier and high-end condos such as The Arte at Thomson or One Devonshire in Somerset. Even at suburban condos, buyers seem to be opting for larger, more expensive units. Yesterday, developer UOL Group sold 180 units in a single day at Meadows@Peirce in Upper Thomson.
While the project offers smaller units from 517 sq ft in size, most units sold had at least three bedrooms and were priced at $1 million and above, said UOL's chief operating officer Liam Wee Sin.
The improved economic outlook also meant that offices and shops also saw slower declines in prices and rentals in the second quarter. Office prices fell 3.9 per cent, while rents fell 7.7 per cent.
But these numbers are unlikely to turn positive soon as recent retrenchment exercises dampen the office sector, said Mr Li Hiaw Ho, executive director of CBRE Research. He was more upbeat about shopping malls, as there is still 'healthy demand' for existing shop space. Shop rents eased 2 per cent in the second quarter and prices fell just 1.4 per cent.
No oversupply of homes next year
GLUT? What glut? Fears of an oversupply of private homes next year have eased - in fact there could even be a shortage.
The Urban Redevelopment Authority's (URA) second quarter real estate statistics, released yesterday, suggest any potential oversupply has been pushed back to 2011 or even later as private property developers delay and cut down on projects.
The number of private homes slated for completion for the whole of next year has fallen sharply to just 5,394.
That is down about 70 per cent from an estimated 17,454 early last year at the height of the last boom.
Just as developers have cut back on building, home buying has shot back up to boom-time levels.
For the past three months, more than 1,000 private homes have been sold each month. An average of 8,000 private homes have been sold each year since 2000.
This means that private home prices and rents could rise next year, as the supply of private property units in 2010 may not meet demand, especially if the current strong sales streak keeps up.
Caveats apply, of course, market watchers say. URA's statistics rely on figures that developers have provided, and dramatic changes from quarter to quarter have occurred before.
Also, the number of completed units could differ from the number sold, as developers could sell uncompleted units or be unable to sell completed units.
According to URA statistics, during the last boom in 2007 and last year, developers - confident that people would snap up private homes - obtained licences to sell 11,150 private homes set to be finished this year, and 9,188 homes in 2010.
But the collapse of Lehman Brothers last September and the resulting recession triggered fears last year that there would be too many private homes on the market next year amid an economic slowdown.
Concerned that units would not sell, developers have since slashed some projects and pushed back the completion dates of others. As a result, URA's figure for the total planned units slated for completion this year and beyond has fallen by 6,000 - from over 68,000 in the first quarter of 2008 to the current 62,350.
But although almost all of URA's projected completion figures have declined gradually over the period from the third quarter of last year to the first quarter this year, the slide shows signs of having just bottomed out.
In the third quarter of last year it was projected that around 13,400-16,000 units would be completed every year after 2010. This fell to a range of 12,100-13,900 in the fourth quarter and then to 10,900-13,800 last quarter.
Although it still remains below pre-recession levels, this range has risen slightly in the last quarter to 11,200-13,600 units every year from 2011 onwards.
The bulk of project completions has been shifted from next year to 2011 and later, with project completion figures increasing by an average of 350 for each year from last quarter's figures.
To date, 5,158 private units have been finished in the first half of this year, and URA expects 1,051 more units to be ready within the next six months.
HDB prices up 1.4 per cent
PRICES of Housing Board flats rose 1.4 per cent in the second quarter to a record high, reversing a first-quarter dip of 0.8 per cent.
The number of transactions also soared - up 58 per cent in the three months to June 30 - as confidence grew and buyers rushed back into the market.
One reason for the HDB market's resilience amid testing economic times is the decline in the amount of cash required upfront to buy a resale flat. This amount is called cash-over-valuation (COV) and is falling or at least stable across all flat types.
Fresh figures released by HDB yesterday showed that the median COV for all flat types fell to just $3,000 in the second quarter compared with $4,000 in the first quarter. The median COV is at a relatively low $5,000 for three- and four-roomers and stayed at zero for five-room and executive flats, for both the first and second quarter.
Median COV for two-roomers declined from $7,000 in the first quarter to $6,000 in the second.
This is a marked change from the 2007 property boom, when median COV hit $22,000 in the fourth quarter, pricing many first-time buyers out of the resale market.
COV has come down due to valuations of resale flats catching up, said ERA Asia Pacific associate director Eugene Lim.
So even though values of HDB resale flats are high, they have become more affordable as buyers can get bank loans for the purchase and do not have to fork out high amounts of cash.
Sales activity was robust in the quarter with transactions up to 10,184 compared with 6,446 in the first quarter. They were also up 31 per cent from the 7,763 units sold in the same period last year.
Sales of five-roomers rose 80 per cent - 2,713 were moved - over the first quarter while executive flat transactions surged 100 per cent to 753. Four-room flat sales climbed from 2,488 to 3,787.
PropNex chief executive Mohamed Ismail noted that sales of the bigger flat types had suffered in the three quarters up to the end of March amid growing concerns about Singapore's worst recession.
'These numbers are a clear sign that people's market confidence is growing,' he said, adding that feedback on the ground indicated that demand in mature estates far exceeds supply.
The sales of larger flat types also explain the strong demand from HDB upgraders who sold their flats to buy private homes, said property veteran Nicholas Mak.
Private home sales, especially in mass-market suburban condos, have enjoyed brisk sales since February.
Meanwhile, HDB rents were stable. Median rents for two-room and five-room flats for the second quarter were unchanged but fell by $100 for three-room, four-room and executive flats.
HDB plans to launch a further 6,000 units under its build-to-order scheme over the next six months. About 2,400 will be three-room and smaller flats. The bulk of new flat supply will be in Punggol. So far, HDB has launched about 2,000 new flats in Punggol, Sengkang and Woodlands this year.
Analysts predict that HDB flat prices will enjoy modest increases as confidence continues to grow.
But the falling COV for large flats could indicate limited upside for prices of these flat types, said Mr Mak. 'This could also limit the HDB upgraders' demand for private property in the short term,' he said.
Cheaper condos see smaller price declines; sales of big HDB flats up
THEY were shut out of the property market during the most recent boom in 2007, when furious demand for luxury homes drove up home prices far beyond their reach. Now, buyers of cheaper mass market homes - defined loosely as bigger HDB flats and condominiums in the suburbs - are back in the market with a vengeance.
What helped jam the brakes on the decline were suburban homes, which saw the smallest price drop compared to pricier prime and city-fringe. -- ST PHOTO: DESMOND WEEThey doubled their purchases of five-room and executive HDB flats between March and June, pushing overall HDB prices up 1.4 per cent to hit a new high in the quarter, according to Housing Board (HDB) data released on Friday.
Mass market buyers also picked up four out of every 10 private homes sold, a shopping spree that resulted in twice the number of homes being sold in the second quarter than the first quarter, said the Urban Redevelopment Authority (URA). The number of resales nearly trebled while sub-sales more than doubled.
The strong demand for cheaper condos meant that while private home prices still fell 4.7 per cent in the second quarter, it was a far smaller decline than the plunge of 14.1 per cent in the first quarter.
What helped jam the brakes on the decline were suburban homes, which saw the smallest price drop in the quarter - 2.3 per cent - compared to pricier prime and city-fringe properties, which saw prices fall by double that amount. Rents for private homes continued to fall 5.2 per cent in the quarter, though 8 per cent more leases were signed.
Consultants had actually expected prices to increase in the second quarter, as home buyers flooded back and developers started to selectively raise prices.
'Our own analysis showed that private home prices in the second quarter rose,' said DTZ's head of South-east Asia research Chua Chor Hoon. She said the price increases ranged from 3 per cent for some suburban resale homes, to 11 per cent for homes in the prime districts.
In response to queries, the URA said that while prices have risen in some projects, there were still other developments that saw prices fall in the quarter. But private home prices are likely to show a definite pickup from the third quarter, consultants say. 'The second quarter will possibly be the last quarter of price declines,' said Ms Tay Huey Ying, director of research and advisory at property firm Colliers International.
'If developers remain cautious and tread carefully with price increases, this momentum in the market could continue. But if developers are impatient and jack up prices too quickly, that may hurt demand as buyers are still price-sensitive.'
Mr Nicholas Mak, a long-time property consultant, said he expects overall prices to show an increase in the second half of this year. His reasons: the recovery in global stock markets, relief buying due to a shorter-than-expected recession, and low interest rates that make property purchases look more attractive.
The outlook has also been boosted by the fact that demand is no longer restricted to the mass market, he said. In recent months, more buyers have been keen on mid-tier and high-end condos such as The Arte at Thomson or One Devonshire in Somerset. Even at suburban condos, buyers seem to be opting for larger, more expensive units. Yesterday, developer UOL Group sold 180 units in a single day at Meadows@Peirce in Upper Thomson.
While the project offers smaller units from 517 sq ft in size, most units sold had at least three bedrooms and were priced at $1 million and above, said UOL's chief operating officer Liam Wee Sin.
The improved economic outlook also meant that offices and shops also saw slower declines in prices and rentals in the second quarter. Office prices fell 3.9 per cent, while rents fell 7.7 per cent.
But these numbers are unlikely to turn positive soon as recent retrenchment exercises dampen the office sector, said Mr Li Hiaw Ho, executive director of CBRE Research. He was more upbeat about shopping malls, as there is still 'healthy demand' for existing shop space. Shop rents eased 2 per cent in the second quarter and prices fell just 1.4 per cent.
No oversupply of homes next year
GLUT? What glut? Fears of an oversupply of private homes next year have eased - in fact there could even be a shortage.
The Urban Redevelopment Authority's (URA) second quarter real estate statistics, released yesterday, suggest any potential oversupply has been pushed back to 2011 or even later as private property developers delay and cut down on projects.
The number of private homes slated for completion for the whole of next year has fallen sharply to just 5,394.
That is down about 70 per cent from an estimated 17,454 early last year at the height of the last boom.
Just as developers have cut back on building, home buying has shot back up to boom-time levels.
For the past three months, more than 1,000 private homes have been sold each month. An average of 8,000 private homes have been sold each year since 2000.
This means that private home prices and rents could rise next year, as the supply of private property units in 2010 may not meet demand, especially if the current strong sales streak keeps up.
Caveats apply, of course, market watchers say. URA's statistics rely on figures that developers have provided, and dramatic changes from quarter to quarter have occurred before.
Also, the number of completed units could differ from the number sold, as developers could sell uncompleted units or be unable to sell completed units.
According to URA statistics, during the last boom in 2007 and last year, developers - confident that people would snap up private homes - obtained licences to sell 11,150 private homes set to be finished this year, and 9,188 homes in 2010.
But the collapse of Lehman Brothers last September and the resulting recession triggered fears last year that there would be too many private homes on the market next year amid an economic slowdown.
Concerned that units would not sell, developers have since slashed some projects and pushed back the completion dates of others. As a result, URA's figure for the total planned units slated for completion this year and beyond has fallen by 6,000 - from over 68,000 in the first quarter of 2008 to the current 62,350.
But although almost all of URA's projected completion figures have declined gradually over the period from the third quarter of last year to the first quarter this year, the slide shows signs of having just bottomed out.
In the third quarter of last year it was projected that around 13,400-16,000 units would be completed every year after 2010. This fell to a range of 12,100-13,900 in the fourth quarter and then to 10,900-13,800 last quarter.
Although it still remains below pre-recession levels, this range has risen slightly in the last quarter to 11,200-13,600 units every year from 2011 onwards.
The bulk of project completions has been shifted from next year to 2011 and later, with project completion figures increasing by an average of 350 for each year from last quarter's figures.
To date, 5,158 private units have been finished in the first half of this year, and URA expects 1,051 more units to be ready within the next six months.
HDB prices up 1.4 per cent
PRICES of Housing Board flats rose 1.4 per cent in the second quarter to a record high, reversing a first-quarter dip of 0.8 per cent.
The number of transactions also soared - up 58 per cent in the three months to June 30 - as confidence grew and buyers rushed back into the market.
One reason for the HDB market's resilience amid testing economic times is the decline in the amount of cash required upfront to buy a resale flat. This amount is called cash-over-valuation (COV) and is falling or at least stable across all flat types.
Fresh figures released by HDB yesterday showed that the median COV for all flat types fell to just $3,000 in the second quarter compared with $4,000 in the first quarter. The median COV is at a relatively low $5,000 for three- and four-roomers and stayed at zero for five-room and executive flats, for both the first and second quarter.
Median COV for two-roomers declined from $7,000 in the first quarter to $6,000 in the second.
This is a marked change from the 2007 property boom, when median COV hit $22,000 in the fourth quarter, pricing many first-time buyers out of the resale market.
COV has come down due to valuations of resale flats catching up, said ERA Asia Pacific associate director Eugene Lim.
So even though values of HDB resale flats are high, they have become more affordable as buyers can get bank loans for the purchase and do not have to fork out high amounts of cash.
Sales activity was robust in the quarter with transactions up to 10,184 compared with 6,446 in the first quarter. They were also up 31 per cent from the 7,763 units sold in the same period last year.
Sales of five-roomers rose 80 per cent - 2,713 were moved - over the first quarter while executive flat transactions surged 100 per cent to 753. Four-room flat sales climbed from 2,488 to 3,787.
PropNex chief executive Mohamed Ismail noted that sales of the bigger flat types had suffered in the three quarters up to the end of March amid growing concerns about Singapore's worst recession.
'These numbers are a clear sign that people's market confidence is growing,' he said, adding that feedback on the ground indicated that demand in mature estates far exceeds supply.
The sales of larger flat types also explain the strong demand from HDB upgraders who sold their flats to buy private homes, said property veteran Nicholas Mak.
Private home sales, especially in mass-market suburban condos, have enjoyed brisk sales since February.
Meanwhile, HDB rents were stable. Median rents for two-room and five-room flats for the second quarter were unchanged but fell by $100 for three-room, four-room and executive flats.
HDB plans to launch a further 6,000 units under its build-to-order scheme over the next six months. About 2,400 will be three-room and smaller flats. The bulk of new flat supply will be in Punggol. So far, HDB has launched about 2,000 new flats in Punggol, Sengkang and Woodlands this year.
Analysts predict that HDB flat prices will enjoy modest increases as confidence continues to grow.
But the falling COV for large flats could indicate limited upside for prices of these flat types, said Mr Mak. 'This could also limit the HDB upgraders' demand for private property in the short term,' he said.
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