Govt May Be Taking Steps To Calm Down The Property Market, Say Analysts

Source : Channel NewsAsia, 02 September 2009

The government could re-introduce land sales through the confirmed list and analysts said this could mean the government is taking steps to cool down the property market.

Last October, recession woes saw the government suspending land sales through the confirmed list. But now the government said it will consider re-introducing it for the first half of next year.

National Development Minister Mah Bow Tan said: "Now that the market is coming back, demand is coming back and the take-up is strong. There is every likelihood that we will resume the confirmed list."

This means land parcels will be tendered according to scheduled dates and this will translate to more residential property launches. But one analyst said while these changes will ease the market, they will take time to make any impact.

Nicholas Mak, property consultant, said: "This may be the first of actions by the government if they see that the property market shows signs of overheating especially if there is a lot of speculative buying, I think that could prompt the government to take further action."

Public housing prices have gone up by almost 35 per cent over the last two years and the government said it is expecting prices to increase even further. However, it said buyers should not be complaining because these price increases are part of the reason why people invest in the first place.

Mr Mah added: "When you buy an HDB flat, you are investing for your future. We subsidise when you buy, we increase the value of the flat as you live in it and encourage you or facilitate you to cash out when you grow old."

Mr Mah was speaking on Wednesday at the launch of the final skybridge at the Pinnacle @ Duxton, Singapore's tallest public housing project.

He said while public housing remains affordable, with a range of flats to suit people from all levels of income, Singaporeans should continue to buy within their means. - CNA/vm

Govt May Restart Land Sales

Source : The Straits Times, Sep 2, 2009

THE Government is considering reinstating the 'confirmed list' of new sites for sale at its year-end review - a move seen by experts as a measure to cool the buzzing property market.

National Development Minister Mah Bow Tan (left) said: 'As far as (private home) prices are concerned, we want to make sure the property market do not become overheated.' --ST PHOTO: JOYCE FANG

National Development Minister Mah Bow Tan said on Wednesday: 'As far as (private home) prices are concerned, we want to make sure the property market do not become overheated, that there is no excessive speculation.'

'The government is monitoring the market very closely. If there's any necessity, obviously we will take certain actions. One of the things we are looking at is the Government land sales,' he told reporters at the launch of the final skybridge at Singapore's tallest public housing project The Pinnacle@Duxton. It has 1,848 units, of which 111 are unsold.

Bringing back the confirmed list is a 'a definite possibility', said Mr Mah.

The Government suspended the confirmed list of sale sites last October when the property market was in the doldrums and Singapore slipped into a recession.

'Now that the market is coming back, demand is coming back and the take-up is strong, there's every likelihood that we will resume the confirmed list,' said Mr Mah, adding: 'It's a question of how much we put on the confirmed list.'

Restarting the confirmed list was a measure suggested by property developer Kwek Leng Beng as a possible Government move to cool the market.

Singapore's market for new home sales have shot through the roof recently, with some projects sold at benchmark levels.

Resale prices of many popular projects have also risen from the lows early this year.

In tandem with the recovery in the Singapore economy, Mr Mah said HDB resale flat prices will continue to rise this year - by perhaps 1 or 2 per cent.

Property Run-Up May End In 2010: UK Group

Source : The Straits Times, September 02 2009

But CapitaLand remains bullish and will launch two new projects soon

THE run-up in Singapore’s private home prices may fizzle out next year, as several obstacles are still impeding global growth momentum.

That is the view of London-headquartered Royal Institution of Chartered Surveyors (Rics), which represents and regulates property professionals and surveyors.

It issued a report on Monday concluding that the sharp residential market rebound here may peter out. It cited higher unemployment in Singapore as a potential risk factor that could undermine the property rebound here.

In contrast, top local developer CapitaLand remains bullish in its outlook for Singapore, and will soon launch a 1,000-unit condo in Gillman Heights and 165 resort-style homes at the former Char Yong Gardens site. CapitaLand’s upbeat outlook on the market here was reflected in slides presented by its vice-president of investment Anson Lim at a CapitaLand CEOs forum held yesterday.

The current market upswing is being driven by positive sentiment and supported by long-term fundamentals, according to the slides. CapitaLand expects the Urban Redevelopment Authority price index to recover between 5 per cent and 10 per cent for the rest of this year, from the trough in the second quarter. The index showed a fall of 4.7 per cent in the second quarter.

The Rics report was rather less optimistic. It said while an upturn in activity is already well under way in the residential market, significant risks present a challenge to the market in the medium term.

“Labour market indicators, such as unemployment, certainly point to a less benign story,” it said. Unemployment in Singapore looks set to rise sharply in the coming quarters. Based on previous relationships with the world trade index, unemployment could easily climb to 5 per cent before the year is up, it said.

Singapore’s unemployment rate was 3.3 per cent in June. Labour chief Lim Swee Say said last month that the jobless rate this year was unlikely to match the peaks of past downturns. The rate peaked at 4.3 per cent in 2003.

In the short term, residential prices may be propelled higher on an improved global economy into the fourth quarter, said the Rics report.

However, the duration of previous downturns indicates further declines in prices may well occur, should global trade momentum fall short in the medium term as high debt and rising real interest rates weigh on the strength of the global growth recovery, it said.

This, it added, would temper buoyancy in the Singapore labour market and in turn would prevent a return to previous highs in the property sector.

The Rics report also noted that the run-up in office prices has been less acute, compared with residential prices’.

“Despite improved signs that economic activity in Singapore has passed its worst point in the cycle, the global economy will once again be pivotal in dictating the sustainability of that upturn, with real property prices unlikely to surpass recent highs in the coming quarters,” it said.

新楼盘上周末 虽逢“鬼节”仍然热卖

Source :《联合早报》September 1, 2009

除了大巴窑共管公寓Trevista，一些新楼盘，例如新加坡置地在西乃山（Mount Sinai）一带发展的Trizon，以及Bravo集团在景万岸（Kembangan）地铁站附近发展的The Lenox，也都在上个周末的“鬼节”期间取得不错的销售成绩。

德意志摩根建富证券（DMG & Partners）分析师李开安昨天发表的一份周末楼市报告书说，The Lenox在上个星期五一口气卖出了52个单位，其中一些单位还因为有几方人马争购，而必须以抽签的方式来决定买家。

这个位于樟宜路396号的项目，共有76个单位。李开安说：“至今已经售出60个单位，大多是面积介于334至463平方英尺的一两卧房式单位。”

“虽然首两天的需求相当好，达79％，不过还是比不上最近发售的一些‘迷你’项目。例如拥有60个单位的Kembangan Suites和70个单位的Airstream，都在它们的发售第一天就取得100％的销售率。”

据了解，The Lenox有大约43％的单位属于面积少于500平方英尺的“迷你型”单位，因此，其尺价虽然介于1100至1200元，但单位价却大多在50万元以下。

并非每个楼盘都热卖

当然，不是每一个楼盘都有同样热烈的销售反应。受访的产业经纪透露，特别是一些推出已有一段时间的旧项目，销售速度其实有在过去几个星期放慢了下来。

一名不愿具名的房地产顾问说：“特别是职总安居以每平方英尺平均898元来推出Trevista，附近的项目肯定会面对竞争压力。例如宏茂桥的Centro和玛丽蒙台的Trasalveo，现在的成交价分别介于每平方英尺1200元和1000元。”

截至星期天晚上，职总安居已经卖出了410个Trevista共管公寓单位，这相等于九成的推出单位。

职总安居发言人告诉本报：“我们只会在这个星期六的正式推出日，才开放新的单位让买家选购。”

职总安居自上星期五起，已经推出了460个单位，这也就是说，这个拥有590个单位的项目只剩下130个单位还未发售。

它在上星期五发售的第一期210个单位，平均推出价格为每平方英尺898元，第二期发售的190个单位，以及第三期的60个单位，价格都分别调高了2％至4％。这个99年地契共管公寓，位于大巴窑2巷和3巷之间，相当靠近布莱德地铁站。

李开安认为，买家不讳“鬼节”，照样涌到示范单位，一方面是因为几个销售反应良好的楼盘，都将售价定在每平方英尺900元至1500元之间，另一方面是因为有新的项目被供应到市场上来。他相信，未来几个星期，手头上握有中低档私宅项目的发展商，应该还是会加紧筹备工作，尽快将项目推出市场销售。

德意志摩根建富证券的报告书也说，新加坡置地的The Trizon在上个周末的预售活动中推出大约200个单位，大约100个已经在上周末找到买家，每平方英尺成交价介于1300元至1500元。

这个项目共有289个单位，李开安说：“买家中，印尼人和新加坡人的比率均等，它们包括居住在武吉知马和荷兰一带的居民和投资者。组屋提升者应该不多，因为最小的两卧房式单位约1012平方英尺，要价约150万元。”

这幅位于冈林弄（Ridgewood Close）的地段，其实就是欣美阁（Himiko Court）原址。它是新加坡置地在2007年5月，以3亿3600万元，或容积率每平方英尺821元买下的集体出售地段。市场人士估计，新加坡置地在这个项目的成本大约是每平方英尺1250元。

楼市升温声中 出乎市场预料 非有地住宅发展费下调2％

Source : 《联合早报》September 1, 2009

尽管本地楼市在过去半年里已恢复“升”气，政府昨天却出乎意料地把公寓与共管公寓（非有地住宅）未来半年的发展费（development charge）平均下调2％。

此外，接下来六个月里，政府也只对商业地段、酒店与医院用地以及工商业区商业用地稍微作出调整，平均下调4％，其他用途土地的发展费则保持不变。

市场人士认为，从小幅度调整来看，政府相信很难为前景不明的楼市估价，也不愿干预，因此选择采取谨慎的调整。不过，对于非有地住宅土地发展费的下调，一些分析师感到不解。

卓登新达（Chesterton Suntec）研究部主管陈瑞谨说：“过去几个月，我们一再见证私宅市场升温的情景。新项目叫卖、价格一再被调高的情况不是孤立个案，而是如鸟群般涌现。在这样的情况下，政府为何选择继续将公寓土地的发展费下调？再来，2％至4％的调整微不足道，不会吸引发展商进场，这可能反映了政府对本地楼市前景不是很有把握。”

戴德梁行（DTZ）研究部主管蔡楚芬则指出，上半年有地和非有地住宅的价格同样年比下跌4.7％，但在这次的发展费调整中仅有非有地住宅下调，而且与新公寓项目热卖的情况背道而驰，令人百思不解。

在这一次的调整中，有地住宅的发展费几乎都保持不变，但非有地住宅土地的发展费则下调了2.7％至16.7％。

对此，国内税务局的首席估价师在回答本报询问时表示，只针对一些土地用途作出调整是由于在1、2月份的检讨中，市场信息不足，因此一些土地的发展费并没有获得妥善调整。

首席估价师也指出，土地价格一般落后楼价一至两个季度，因此过去两三个月的楼价是否将带动地价上涨，将在未来几个月明朗化。

国家发展部每年调整发展费两次，一次在3月1日，一次在9月1日，以便更好地反映市场的土地价值增长情况。这次的调整今天生效，有效期至明年2月28日，并将影响已获得临时准证（provisional permission）的项目。国家发展部是在征询首席估价师的意见和根据现行市场价格，才对被划分出来的118个地区的不同用途土地作出调整。

这个土地“价目表”广为房地产界人士留意，因为它不但反映了政府对房地产价值的看法，也会影响发展商在重建项目时的成本，甚至影响集体出售交易。

今年3月，为反映楼价下跌的趋势，政府将全岛多个地区的非有地住宅、商业地段和酒店与医院用地的发展费平均下调介于4％至15％。非有地住宅发展费平均下跌15％，其中升涛湾（Sentosa Cove）以及第9和10邮区黄金地带的调整幅度最大，下调介于25％至30％。

这一回，升涛湾、纽顿和里峇峇利等黄金地带的调整继续最为显著，分别为16.7％、15.8％和14％，但丹戎巴葛一带的下调则从上一次的11.8％，减少至2.7％。

2007年，本地楼市最红火的时候，政府不但把土地发展费从50％调高到70％，而且在当年9月份将非有地住宅发展费平均调高58％、有地住宅则起11％。商用地和酒店与医院用地的发展费也分别起42％和23％。

资深房地产顾问麦俊荣指出，由于目前楼市红火的情况不知是否能持久，楼价上涨的情况也只是在过去两个月较为显著，政府其实很难为未来六个月的土地价格估值，因此选择小幅度的调整，以避免左右市场。

世邦魏理仕执行董事李晓和则指出，发展商是在7月份开始寻找发展地段，有四个政府备售地段被“勾”出招标出售，之前仅有一些小规模的私人土地被出让，因此政府不打算过于调整私宅的发展费。

同样的，尽管办公楼和工业厂房需求最近开始恢复，麦俊荣预料，4％的下调不足以吸引发展商进场。他指出，市场上供应充足，目前有1100万平方英尺的办公楼在建设中。

Older Properties Find Buyers At Auction

Source : The Business Times, August 29, 2009

As prices of new homes rise, investors are turning to auctions and the resale market.

INVESTORS who are put off by the exuberant prices of late for newer properties are turning to auctions to pick up older properties that have not quite appreciated in the same way.

GOING, GOING - Two three-bedroom apartments at Four Seasons Park (left) were sold at auction this week for more than $2,100 per square foot each

Two apartments at Four Seasons Park near Orchard Road and an apartment at The Waterside in Tanjong Rhu have changed hands at auctions this week.

Colliers International sold the pair of neighbouring three-bedroom apartments at Four Seasons Park, on the fifth floor of the development's Autumn block, for more than $2,100 per square foot each.

The apartments, each of 2,260 square feet, were put up for sale by a mortgagee bank on vacant possession basis. Unit #05-01 was sold for $4.8 million or $2,124 psf, while the next door #05-02 fetched $4.84 million ($2,142 psf).

The two units were bought separately by Singaporeans.

BT understands that the same mortgagor had owned the two properties. According to caveat records, the units were purchased at $3.25 million each, one in August 2001 and the other in January 2002.

In June this year, a 3,821 sq ft unit on the 20th level of Four Seasons Park changed hands at $2,146 psf. In April, a 19th floor unit sold for $1,637 psf.

Jones Lang LaSalle at its auction yesterday sold a 14th floor unit at The Waterside condo in Tanjong Rhu for $2.55 million or $1,190 psf. It was also a mortgagee sale.

At another auction this week, conducted by DTZ, a three-bedroom apartment on the 22nd floor of Spottiswoode Park was sold for $630,000 or $496 psf. The development is on a site with a remaining lease of 66 years.

'Buyers are turning to the resale market, whether through private treaty or auction, to pick up properties that are more than 10 years old as their prices have not escalated as much as prices for newer properties,' says Knight Frank executive director and auctioneer Mary Sai.

Landed homes have also been in good demand at recent auctions. A strata bungalow, 261 Northshore, in Ponggol Seventeenth Avenue sold for $1.87 million at Knight Frank's auction on Aug 20. The freehold property's built-up area is about 5,500-5,600 sq ft. The property was sold by its owner, who is also in the midst of negotiating the sale of the next door bungalow at 263 Northshore after it was withdrawn at the same auction.

Colliers deputy managing director and auctioneer Grace Ng said: 'The frustration being faced by those shopping for landed homes is that when they make an offer, sellers often increase their asking prices, which thus becomes a moving target. In contrast, at an auction, once the seller's target price has been reached, there is certainty the property will be sold to the highest bidder.'

At its auction on Wednesday this week, Colliers sold a freehold semi-detached house at 102 Sunbird Circle, off Upper Changi Road, in District 16 for $1.98 million or $565 psf based on the land area of 3,506 sq ft. The two-storey house has five bedrooms.

At its auction yesterday, JLL sold a third level shop at Sim Lim Square for $2.95 million or $4,282 psf. The 689 sq ft shop (comprising two units - front and back) is near a lift. Sim Lim Square has about 73 years remaining lease.

Also transacted at the same auction were 16 and 18 Tanjong Pagar Road, at $2.48 million. The ground floors of the two-storey conservation shophouses are currently leased to a pub/karaoke lounge while offices occupy the upper level.

The shophouses, which have a single title, have a land area of 1,976 sq ft and have about 90 years remaining lease.

Development Charge Rates Cut

Source : The Straits Times, Aug 31, 2009

THE Government on Monday announced cuts of 2 to 4 per cent on average to the development charge (DC) rates that developers pay for enhancing the use of sites.

The new rates will apply from Sept 1 to Feb 28, 2010 and will apply to projects which have been granted provisional permission. The revised rates take into account current market values and are reviewed every six months.

The DC rates for commercial use, business zone comercial use as well as for hotel cum hospital use have dropped by 4 per cent, while that for non-landed residential sites is down 2 per cent, said the National Development Ministry in a statement

There are no changes to the use Groups and the number of geographical sectors.

Sub-Sales Triple In Second Quarter

Source : The Straits Times, August 30 2009

Mass-market and mid-tier projects are hot, but it is taking longer to sell investment properties

The upbeat sentiment in the new private home market has lured out the sellers in the sub-sale market.

Sub-sales - the sale of uncompleted homes by their buyers - of non-landed private properties tripled to 1,200 units in the second quarter, according to a DTZ quarterly report.

This time, though, it is mainly the mass-market and mid-tier projects that are popular sub-sales. In 2007, it was the higher-end projects that found favour with buyers.

Also, the sellers are taking longer to sell their investment properties.

The DTZ study found that a few mass-market projects made their way to the Top 10 list of projects with the most sub-sales. These included Casa Merah, located near the Tanah Merah MRT Station, The Centris in Jurong West and The Quartz in Compassvale.

For instance, there were 54 sub-sales in Casa Merah in the second quarter, and the median sub-sale price rose from $658 psf in the first quarter to $734 psf in July and August.

The most popular sub-sale project in the second quarter was Rivergate, located at Robertson Quay.

The median price of its sub-sale units rose from $1,200 psf to $1,400 psf, and 105 of its 545 units changed hands in the second quarter alone. Prices have since risen further - deals done in July and August ranged from $1,400 to $1,880 psf, according to caveats lodged.

Two perennial favourites are The Sail @ Marina Bay and Icon, prime projects in the central locations of Marina Bay and Tanjong Pagar respectively.

Despite being launched between 2003 and 2005, they still remain popular in the sub-sale market. Their median prices rose 27 per cent and 17 per cent respectively from the last quarter.

Sub-sale buyers tend to be true investors, said HSR Property Group executive director Eric Cheng.

Upgraders, he said, prefer not to buy sub-sales as they do not wish to pay a premium. Those who do, however, find mass- to mid-tier market projects more affordable.

Analysts say that the higher number of sub-sales could be due to the many units that were completed this year.

Ms Chua Chor Hoon, DTZ's head of South-east Asia research, says there is normally a high level of sub-sales for a project when it is nearing, or just after, completion.

'In 2006, 6,250 units were completed. This year, 11,367 units are expected to be completed,' she said.

Mr Cheng pointed out that projects sell out very quickly in today's market, and some buyers who missed out on the chance of buying a unit do not mind paying a small premium to get a unit if the price is not too far away from the launch price.

These buyers often have compelling reasons, said Mr Cheng. They might have family living nearby, or even on the same unit level.

Despite the higher number of sub-sales now, the number of properties bought and sold within a short span of time is not as high as during 1996 or 2007, said Ms Chua.

'The number and percentage of units bought and sold within a six-month period in the first half of the year is a lot less than those in 2007 and 1996,' she said.

Citing data from Realis, she said 88 units were 'flipped' in the first half of this year, compared to 517 in 1996 and 835 in 2007.

Flipping occurs when someone buys a property and resells it quickly for a profit.

'Buyers now tend not to buy another unit so quickly because they often have a choice of other surrounding units that are being sold as well,' said Mr Cheng.

'There are a lot of short-term investors who would like to resell for a profit, but might not be able to because they ask for too much. There are also a lot of launches coming up.

'Market fundamentals are not that strong even though market sentiment is, and we might see a pull-back effect,' he said.

职总大巴窑公寓推出单位卖得七七八八

Source : 《联合早报》August 30, 2009

为了应付买家的需求，大巴窑共管公寓Trevista昨天下午4时又再推出另外60个单位，将总推出单位提高至460个。

职总安居(NTUC Choice Homes)主席黄思绵昨天也到Trevista销售现场了解情况，他在下午3时接受本报访问时说：“我们对销售反应相当满意，我们推出了400个单位，到目前为止已经卖出了330个，达到了预期的水平，我们很高兴有这么多新加坡人支持我们。”

Trevista昨天第二天继续热卖，一个个小红点代表了售出的公寓单位。（邬福梁摄）

坐落在大巴窑二巷和三巷的Trevista，相当靠近布莱德地铁站。职总安居原本打算在前天的预售活动中，开放210个单位供买家选择，平均尺价为898元，后来因为销售反应非常热烈，所以在前天傍晚7时加推了190个单位。

据了解，第二批190个单位的推出价格比第一批抬高了2％至4％。第三批60个单位的价格也因为楼高和面向的关系，调高了2％。

过去几个星期来，Trevista的定价一直都是舆论的焦点。这个99年地契共管公寓前天以每平方英尺平均898元开盘，虽然有不少买家认为并不便宜，也有人认为比他们原先想象来得低。一些发展商甚至暗指职总安居破坏行情，希望Trevista赶快将单位清掉，自己的项目才有机会“动”。

据了解，房屋经纪之前开给潜在买家的指示价格是每平方英尺1100元左右，一些两卧房式单位叫价甚至达到每平方英尺1200元。

黄思绵：会确保人们负担得起

黄思绵昨天向本报重申，职总安居的创立目的是为新加坡人建造负担得起的私人住宅，因此它在定价时必须有这一层考虑。

“我们是一个合作社，不是一个纯粹的盈利机构，我们的目标是为新加坡建造人们负担得起的私人住宅，所以在拟定价格时，会根据市场的价钱做一定的调整，确保我们的单位是人们负担得起，而且质量优良的。”

由于Trevista的卖楼现场采取先到先得的方式，一些买家虽然愿意付较高的价钱，也买不到心仪的单位，所以不少人猜测，这个项目很快就会出现二手楼花。

对此，黄思绵说：“我们希望大多数买我们房子的人，都会在这里组织他们的家庭，所以希望炒作方面会比较少。由于我们的价钱，比市场报道的预测价格来得低，避免不了有些炒家要来这里做一些炒作，不过我们希望这只是少数。”

楼市从上星期四起已经进入农历七月，Trevista却偏偏不忌讳俗称“鬼节”的中元节，选择在这个时候推出。黄思绵认为，农历七月虽然是公司拟定推出日期时的一个考虑因素，不过不是最重要的因素：“根据以往的经验，我们自己的项目或其他发展商的项目，有很多也在七月推出，反应还相当不错。”

黄思绵：职总安居提供合理住屋 也为会员提供合理回报

Source : 《联合早报》August 30, 2009

职总安居主席黄思绵认为，职总安居不但为人们提供了合理的住屋，也为工会会员提供了合理的回报率，在这两方面起了很大的功用。

他表示，Trevista虽然只有590个共管公寓单位，但职总安居自1995年11月创立以来，已经兴建了5931个住宅单位。这为至少四五千个一般民众的家庭，提供了价钱比较合理的住屋。

黄思绵：单靠Trevista的590个单位，确实很难对整体楼市发挥太大的影响力，不过还是会有一定的作用。（唐家鸿摄）

对工会会员来说，职总每年也会派发将近5％股息，职总安居也在这方面让他们享受到了合理的回报率。

黄思绵昨天发表的上述谈话，相信主要回应本报两个星期前的一篇评论文章。

这篇以《杯水车薪，岂能灭火？》为题的文章提到，即使职总安居有意将Trevista的价格压低到每平方英尺1000元以下，单靠它一己之力，也不可能对最近飙涨的楼价起冷却或制衡作用。

文章指出，全国职工总会确实通过职总平价，对本地的物价起了很好的稳定作用。不过，要在房地产方面发挥同样的作用，却不是一件简单的事情，职总安居是否还会继续背负其社会使命，以人们负担得起的价格来推出Trevista？

黄思绵昨天重申，职总安居的创办目的是为新加坡人建造人们负担得起的私人住宅，它是隶属于职总旗下的合作社，并非纯粹的盈利机构，所以必须确保所兴建的房子是人们负担得起的。

在拟定价钱时，它也必须将成本考虑在内，但是它并没有特权，必须跟发展商在公开市场上一起投标地皮。“我们也必须跟其他发展商竞争买地，所以我们的土地成本跟其他发展商基本上差不多一样，我们只能尽量增加建筑效率，用不同方法来减低成本。”

黄思绵承认，单靠Trevista的590个单位，确实很难对整体楼市发挥太大的影响力，不过还是会有一定的作用，例如数百个家庭能够以低于市场预期的价钱买到房子。

他昨天也透露，职总安居的累积资金已经从最初的7800万元，累积至3亿元，这将方便它将来扩大市场权，为新加坡人建造更多人们负担得起的房子。

“不过，我们会以一贯谨慎的手法来进行未来的投资。我们肯定会再投标一些新的地段，不过我们会选择一些好的地段——地价和造价要符合我们的原则，这点我们会特别小心、谨慎，毕竟我们的资金来自各个工会。”

Home Buyers Ignore Ghost Month

Source : The Straits Times, Aug 29, 2009

Toa Payoh condo draws keen interest; developer releases extra units

WHAT ghost month? The traditional lull in home-buying activity during the Hungry Ghost month has been swept aside amid the current property market frenzy.

Buyers were out in force on Friday at the preview of Trevista, a new 590-unit condominium in Toa Payoh, a traditional heartland area. -- ST PHOTO: MUGILAN RAJASEGERAN

Buyers were out in force on Friday at the preview of Trevista, a new 590-unit condominium in Toa Payoh, a traditional heartland area. A queue had formed at least 20 minutes before the showflat doors opened at 2pm. By 5pm, all 210 units released for sale had been snapped up by buyers.

Developer NTUC Choice Homes had said it would release just those units for sale this weekend at an average price of $898 per sq ft (psf). However, the response was so strong that it released another 190 units at higher prices just after 8pm, said a spokesman. She could not say how much higher the prices were.

Of the 210 units, the two-bedders averaged $830,000 while the three- and four-bedroom units averaged $1.065 million and $1.43 million respectively under the normal payment scheme. Owner-occupiers were eyeing the bigger units while investors were mostly keen on the small units.

The 99-year leasehold Trevista, within walking distance of both Braddell and Toa Payoh MRT stations, has 44 one-bedroom units, from 463 sq ft to 721 sq ft. Other units are 861 sq ft to 2,002 sq ft.

The market was expecting big crowds at Trevista as it is the first condo to be launched in the mature Toa Payoh estate since 1996. ERA and CBRE are marketing agents. There was talk that plenty of blank cheques were collected prior to the preview. Some agents expect a sell-out.

It appears that the Hungry Ghost month from Aug 20 to Sept 18 is not an issue for these buyers even though many Taoist households in Toa Payoh burn incense during the month in the belief that this will appease the spirits. Many buyers would have been from the local area.

The property market traditionally goes into a lull during this period as some Chinese consider it inauspicious to buy a house at this time. But in recent years, practicality has often overridden superstition, agents say.

'Some developers may want to wait until the end of the ghost month to launch but those with launch-ready projects will want to capitalise on the buying momentum,' said Savills Residential director Phylicia Ang. 'There are a lot of young buyers who are not very superstitious.'

Also, when the market is slow, buyers may stick to their superstitious beliefs but when the market is hot and a good investment opportunity presents itself, they will not hesitate to jump in, lest they miss the boat, explained Ms Ang.

Another project that previewed yesterday also saw fairly strong demand. The Lenox, a freehold five-storey project along Changi Road, sold 52 units.

It has 76 units - the studio units are just 334 sq ft in size while the three bedders go up to 872 sq ft, and three shops.

Sources said it was priced around $1,000 to $1,100 psf, but the total quantum is low as the units are small.

Another freehold project, Trizon @ Mount Sinai by Singapore Land, will start its public preview today at $1,300 psf to $1,500 psf.

Some units have been sold as a staff preview and a sale exhibition in Jakarta was held recently, sources said.

Median Non-Landed Subsale Price Rises 18%

Source : The Business Times, August 27, 2009

THE median subsale price of non-landed private residential properties increased 18.1 per cent from $813 psf in Q1 this year to $960 psf in Q2, an analysis of caveats by DTZ shows. It attributed the increase to more higher-end properties transacted in Q2 as well as price appreciation in the quarter.


















The most popular subsale project in the April to June 2009 period was Rivergate, with 105 units changing hands - or nearly a fifth of the total 545 units in the freehold project located in the Robertson Quay area. The project obtained Temporary Occupation Permit in Q1.

Rivergate's median subsale price increased from $1,200 psf in Q1 2009 to $1,400 psf in Q2. Caveats for subsales in July and August are starting to stream in and the deals have been done at prices ranging from $1,400 to $1,775 psf, or a median price of $1,600 psf.

The next most popular subsale project in Q2 was City Square Residences at Kitchener Road - with 57 deals done at a median price of $893 psf, up 13 per cent from the $791 psf median price on 43 units transacted in the first quarter. In July to August, three units at the freehold condominium were sold, at prices ranging from $1,000 psf to $1,104 psf.

Median subsale price at Casa Merah, a 99-year leasehold condo near Tanah Merah MRT Station, has gone up from $658 psf in Q1 to $691 psf in Q2 to $734 psf in July to August. The latest price is 11.6 per cent above the Q1 level. Twenty subsales were done in the project in July to August - probably helped by the sellout preview of Optima @ Tanah Merah nearby a few weeks ago.

Over in the Buangkok MRT vicinity, 11 units were sold at The Quartz in the subsale market in July to August at a median price of $699 psf, 15.7 per cent higher than the Q1 median subsale price of $604 psf.

In the Katong area, the median subsale price for One Amber rose from $830 psf in Q1 to $1,015 psf in July to August - or a 22.3 per cent price gain. In the same period, the median subsale price for Icon in the Tanjong Pagar area appreciated 26.2 per cent from $1,144 psf to $1,444 psf.

Subsales are secondary market deals in projects that have yet to obtain Certificate of Statutory Completion.

Homes Of Over $1.5m Cut Bigger Slice Of Q2 Deals

Source : The Business Times, August 27, 2009

They make up 22% of total transactions, compared with 10% a quarter earlier

Improved sentiment in the private residential sector has filtered from the mass market to the upper tiers in the second quarter of this year, an analysis of caveats shows.

The proportion of caveats in Q2 for private housing transactions above $1.5-million was bigger than in Q1.

A study by DTZ shows that 22 per cent of transactions in Q2 were for deals above $1.5 million, compared with just 10 per cent in Q1.

Also, the number of transactions in the $1,500-1,999 per square foot (psf) range jumped more than 10 times, from 34 units in Q1 to 369 in Q2. And the number of deals for units costing $2,000 psf or more rose from just 10 in Q1 to 67 in Q2.

Another indicator of activity spreading to the higher end of the market is that a quarter of caveats lodged in Q2 were for properties in the prime districts 9,10 and 11, up from 14 per cent in Q1.

Buyers with private addresses accounted for 56 per cent of private home purchases in Q2, up from 44 per cent in Q1. This reflects a spillover of buying from the mass market to the upper tiers, DTZ said.

Conversely, HDB upgraders' share of caveats lodged for private home purchases slipped from 56 per cent in Q1 to 44 per cent in Q2.

'HDB upgraders have been able to participate in the current home buying wave due partly to the wealth effect brought about by rising HDB resale prices,' said DTZ South-east Asia research head Chua Chor Hoon.

'As well, wages went up in the past few years prior to the stagnation and wage cuts seen last year and this year. As a result, prices of entry-level private condos are generally still quite affordable for HDB upgraders.

'But if developers keep on increasing prices, mass-market private condos will become less affordable again to HDB upgraders.'

DTZ's analysis shows that 75 per cent of total private housing deals involving buyers with HDB addresses were at or below $1 million in Q2, down from 87 per cent in Q1.

Also, 37 per cent of buyers with HDB addresses picked up properties in the $600,001-800,000 band in Q2. In contrast, 60 per cent of buyers with private addresses purchased units costing above $1 million.

DTZ found that buyers with HDB addresses acquired smaller homes than buyers with private addresses.

It said that 77 per cent of purchases involving HDB upgraders were for homes up to 1,400 sq ft, compared with 52 per cent of transactions by buyers with private addresses in Q2.

The property consultancy also said that 88 per cent of purchases by HDB upgraders were for homes outside districts 9, 10 and 11. HDB upgraders bought mostly mass-market condos. Their most popular picks were Mi Casa in Choa Chu Kang and Double Bay Residences in Simei, with respective median selling prices of $633 psf and $663 psf.

Looking ahead, Ms Chua reckoned that activity will continue to filter to the upper levels of the private housing market for the rest of this year in tandem with a general improvement in the Singapore economy.

'As well, most economies seem to have seen their worst and are improving,' she said. ' That will help to bring back more foreign buyers to the Singapore property market.'

Some market watchers said that whether the upper end of the market sees more transactions hinges partly on developers' willingness to launch more high-end and luxury projects.

But Knight Frank executive director (residential) Peter Ow reckoned that the likelihood of a significant pick-up in launches over the next few months in these segments is slim.

'We can see that for the mass-market and mid-tier projects, the take-up rate slows when developers raise prices,' he said.

2 GCBs At Queen Astrid Park To Be Auctioned

Source : The Business Times, August 27, 2009

They are to be sold together as the land is yet to be divided into 2 titles

Two good class bungalows (GCBs) at Queen Astrid Park will be auctioned together by TM Asia Life Singapore as part of its plan to dispose of non-core assets.

'We are seeking offers in excess of $36 million, which works out to $890 per sq ft of the land area,' said Irinn Lee, auctioneer and director at Credo Real Estate, which will conduct the auction.

'Going by recent sales of GCBs and the condition of the houses, which overlook lower-lying bungalows, we believe they may even be knocked down at auction well above $36 million.'

The bungalows - numbers 29 and 29A Queen Astrid Park - sit on a sprawling 40,453 sq ft site.

They are for sale to one buyer as the land is yet to be sub-divided into two titles.

The bungalows were built around 1999 and each has a built-up area of about 8,500 sq ft. The auction will take place on Sept 24.

Ms Lee said that the values of GCBs in Queen Astrid Park have held up well, even during down markets.

In June last year, a 10-year-old house at No 1 Queen Astrid Gardens, on a 15,680 sq ft site, was sold for $20 million or $1,276 psf.

And in November last year, an old bungalow at No 25 Queen Astrid Park, on 38,549 sq ft of land, was sold for $31.8 million or $825 psf.

Sales of GCBs have picked up over the past few months as high-net-worth individuals stepped up purchases.

The action started in April when $56 million of GCBs were transacted. It gathered steam in May and June, when $188 million of deals were done each month.

Then in July, more than 20 GCBs changed hands for more than $300 million.

In contrast, GCB sales totalled only $27.5 million in the first quarter of this year.

GCBs are the premier form of housing in Singapore.

They are confined to 39 designated areas and there is an estimated total stock of about 2,500 units only.

More Buyers Now Going For Pricier Homes

Source : The Straits Times, Aug 27, 2009

THE property boom is fast spreading to the upper reaches of the market, with more people buying premium-priced homes, according to data from property consultancy DTZ.

The DTZ data highlights that 25 per cent of property hunters snapped up homes in the prime 9, 10 and 11 districts in the second quarter, up from 14 per cent in the first quarter. -- ST PHOTO: CHEW SENG KIM

The firm's analysis of caveats lodged shows that 22 per cent of total private home sales in the second quarter were for homes priced above $1.5 million, compared to 10 per cent in the first quarter.

Buyers living in private residences bought 4,651 homes between April and June, more than the 3,710 homes purchased by HDB-based buyers. DTZ said that this showed a spillover of demand from the mass market to the mid- and higher-tier segments.

It is a turnaround from the first quarter, when HDB upgraders and first-time buyers outnumbered buyers living in private homes. Seven in 10 buyers of new private homes in the first three months of the year had Housing Board addresses.

















The DTZ data highlights that 25 per cent of property hunters snapped up homes in the prime 9, 10 and 11 districts in the second quarter, up from 14 per cent in the first quarter. It was the first time in 11/2 years that sales in prime districts exceeded 20 per cent of total sales.

DTZ head of South-east Asia research Chua Chor Hoon said: 'We have definitely seen more investors coming back in recent months... As private home prices have corrected 10 to 33 per cent from their 2007 peak to the lows of the first quarter of 2009, Singapore households have ploughed savings accumulated during the prosperous years in 2004 to 2007 into the property market.'

Resilient HDB resale prices have created a wealth boost for HDB upgraders, causing the proportion of buyers with HDB addresses in the second quarter to reach 44 per cent. Though a smaller proportion than in the first quarter, this was well ahead of the 29 per cent seen in 2006 when the market started to pick up, notes DTZ. HDB upgraders and first-time homebuyers typically buy into mass market condominiums, which are usually lower-priced homes in suburban areas.

In the second quarter, about 75 per cent of buyers living in HDB flats bought homes for less than $1 million. Nearly half spent from $600,001 to $800,000. In comparison, some 60 per cent of buyers living in private homes bought units costing more than $1 million.

A larger group of buyers living in HDB flats bought smaller units of 1,400 sq ft or below. This can prove to be more affordable as the total quantum price can be relatively low, even if the per sq ft price is on the high side, experts said.

Keen buying interest spilled into the secondary market, with sub-sales of non-landed homes trebling to 1,200 units in the second quarter. The sub-sale price of these homes rose 18 per cent to $960 per sq ft (psf) from $813 psf, said DTZ.

Foreign buyer numbers rose, but they still bought only 15 per cent of private homes priced above $1,110 psf in the second quarter, compared with 29 per cent for the whole of 2006. Such buyers are increasingly moving to mid-tier properties on the city fringes, DTZ observed.

Ms Chua predicted more units to be transacted at $1.5 million-and-above in the current quarter, as more projects in the $1,500 psf to $2,000 psf price bracket came onto the market in July and August.

But if private home prices continue to move far ahead of HDB resale prices, HDB upgraders could be forced to pull back, said Jones Lang LaSalle's head of research for South-east Asia, Chua Yang Liang.

Foreign Buyers Warm To Mid-Tier City-Fringe Homes

Source : The Business Times, August 27 2009

Q2 resurgence sees Indonesians pick up 5 times the number they bought in Q1

Foreign buying of private homes rose in Q2 but is not back in full force in terms of its share of higher-priced transactions, according to a caveats analysis by DTZ. The quarter also saw a resurgence of purchases by Indonesians, who were the top buyers in the upper-tier segments.

Foreigners, excluding Singapore permanent residents (PRs), made up only 15 per cent of those who bought private homes costing over $1,110 per square foot (psf) in Q2 2009, much lower than their 29 per cent share in 2006 when the property market began to heat up.

In terms of absolute price quantums, too, non-PR foreigners made up 14 per cent of total transactions done at above $1.5 million in Q2 2009 - considerably below the 20 per cent figure in 2006.

'The profile of foreigners has changed gradually over time. They are increasingly moving to mid-tier homes located at the city fringes,' DTZ said.

Knight Frank executive director (residential) Peter Ow said the trend is also due to several city-fringe projects being launched recently in locations such as Novena and Holland Road at prices that foreign buyers have found attractive.

'Their prices are about 30-40 per cent lower than prime Orchard Road properties with similar-quality finishes. And most of these projects are near MRT stations and often 10 minutes' drive to Orchard Road,' he added.

DTZ's analysis showed that homes in the prime districts of 9, 10 and 11, as well as district 15, accounted for 47 per cent of total private homes bought by non-PR foreigners in Q2 - much lower than a 62 per cent share in 2006.

The total number of private homes bought by both PRs and non-PR foreigners more than trebled from 497 units in Q1 to 1,678 units in Q2.

The most popular projects among non-PR foreigners in Q2 were Rivergate (33 purchases), The Arte (31 units), Martin Place Residences (26 units) and The Lakeshore (23 units).

Among PRs, their top picks were The Arte, Martin Place Residences, The Lakeshore, Mi Casa and Melville Park.

The second quarter saw a big resurgence in Indonesian buying. They picked up 349 units in Q2, almost five times the 70 units they bought in Q1. As a result, Indonesians accounted for 21 per cent of private homes bought by foreigners and PRs, up significantly from a 14 per cent share in Q1.

However, they still trailed Malaysians, who made up the lion's share or 29 per cent of purchases by foreigners and PRs. Mainland Chinese accounted for 15 per cent and Indian citizens, 12 per cent.

Although Indonesians made up about one-fifth of total private residential purchases by PRs and non-PR foreigners, they bought one-third of homes costing above $1,110 psf that were picked up by foreigners and PRs in Q2.

In terms of absolute price quantums, Indonesians also had a one-third share of total purchases by PRs and non-PR foreigners done at above $1.5 million in Q2.

优质洋房市场续升温

Source : 《联合早报》August 27, 2009

优质洋房(Good Class Bungalow)市场进一步升温，又有两栋位于荷兰路一带的优质洋房，将被推上拍卖台寻找买家。

负责这项拍卖活动的齐乐行（Credo）说，两栋位于爱士特女皇园（Queen Astrid Park）29号和29A号的优质洋房，占地4万零453平方英尺，必须卖给同一名买家，因为它们还没有申请分割成两张独立的地契。

两栋即将拍卖的爱士特女皇园优质洋房，必须卖给同一名买家，因为它们共同拥有一张地契。（Credo提供）

这两栋别墅的业主是TM亚洲人寿（TM Asia Life），这家保险公司持有这两栋别墅已数十年，它在1999年重建了这两栋别墅，目前两栋别墅的楼面各约8500平方英尺，都拥有泳池。

拍卖会将在下月24日举行。齐乐行透露，它希望以3600万元以上，即每平方英尺890元来帮业主卖出这两栋别墅。“从最近优质洋房的交易情况，以及这两栋别墅本身的条件来看，我们相信拍卖会上的出价可能远远超出3600万元。”

它认为，这两栋别墅非常适合大家庭居住，例如两个兄弟可以联手买下这两栋别墅，一个分占一栋，以便彼此照应。它也适合投资者自己住一间，另外一间租出去。

齐乐行指出，在39个优质洋房区内，爱士特女皇园是最受欢迎的其中一个区。即使是雷曼兄弟倒闭后的楼市低潮期，这一区的优质洋房价格仍然持高。例如2008年11月，位于爱士特女皇园25号的一栋老洋房仍然以3180万元，即每平方英尺825元成交。

2008年6月，一栋位于爱士特女皇园1号、只有10年屋龄的洋房，则以2000万元，即每平方英尺1276元成交。

市场人士说，本地优质洋房市场是在今年4月开始“动”起来的，单单4月份就有总值5600万元的优质洋房成交，5月和6月的交易总额都各别攀升，7月份更进一步飙涨至3亿元以上。

市场估计，过去七个月来，本地已有大约50栋优质洋房转手，交易总值超过8亿元。齐乐行董事经理卡南吉透露，今年来优质洋房价格估计已经攀升了10％至20％。

Prime Home Prices May Rise 18% By End 2010: UBS

Source : The Business Times, August 26, 2009

The analysts say mass launch prices have hit 2007 peak, and may stagnate

LAUNCH prices for new private homes rose 10 per cent and 18 per cent in prime and mass districts respectively in the first half of 2009, according to UBS Investment Research.

On the back of this, analysts Regina Lim and Michael Lim now expect prime prices to rise 18 per cent from here to 2007 peak by end 2010, as interest continues to improve and foreigners start to buy. However, luxury prices are not expected to reach the $4,000-$4,500 per square foot (psf) levels seen in 2007. By contrast, mass launch prices have reached the 2007 peak due to fervent buying by locals and prices could stagnate at current levels, the analysts said in an Aug 24 report: 'For mass market launch prices, we believe they could stagnate at current levels after rising around 20 per cent in 2009.'

UBS' research also showed that most of the demand for private homes this year came from local buyers. In the first seven months of 2009, developers sold over 10,100 units, mostly in mass market condominiums where buyers were largely Singaporeans.

'In H1 2009, we saw a sharp increase in buyers who currently live in public housing (HDB),' said the report. For new sales, 54 per cent of buyers had HDB addresses, compared with 24 per cent in 2007. For resale transactions, 44 per cent of buyers had HDB addresses, compared with 22 per cent in 2007. In addition, a large portion of non-Singaporean buyers were permanent residents.

Looking ahead, UBS believes that demand for prime residential units will grow as interest grows among foreigners. 'We saw signs of improvement for prime units in Q2 2009,' said the report. 'In Q2 2009, resale transactions in the prime districts increased more than five times to 230 a month, from 42 a month in Q1. Prime resale transactions now make up 24 per cent of all resale transactions, compared with 16 per cent in Q1 2009 and 30 per cent in Q1 2007.'

The price growth that UBS expects will be supported by low completions supply, the analysts said. UBS expects the total number of homes to be completed from 2009 to 2015 to be around 16,000 per year - similar to the levels in 2000-2008.

'We believe this is not excessive, if we expect population growth to be 2.4 per cent, which translates to around 116,000 persons per annum,' said the report. 'We believe that supply is reasonable and we expect rental growth in 2009-2015 to be at least 5 per cent compound annual growth rate (CAGR) as completions are similar to 2000-2008, yet population growth is expected to be 15-20 per cent higher.'

However, other analysts here are less bullish. RBS Singapore analyst Fera Wirawan said recently that residential property prices could fall 10 per cent to 20 per cent over the next 12 months on back of anti-speculative measures, falling rental yields and increasing supply.

Based on her analysis, prices of mass-market homes are now at peak 2007 levels, while prices of mid-tier and high-end homes are just 8 per cent and 22 per cent off their peaks respectively.

Leng Beng Lays Down Marker With Chestnut Bid

Source : The Business Times, August 26, 2009

Toppish price may send inadvertent signal to restart confirmed list sales

EVEN as the dust settles on Hong Leong Group's top bid at last week's tender for a 99-year condo site at Chestnut Avenue, a discussion in some circles now centres on whether Hong Leong overpaid for the site.

As expected, Housing & Development Board said yesterday evening it has awarded the site to Sunny Vista Developments (a subsidiary of City Developments) and Hong Realty.

The two companies are part of the Hong Leong Group and teamed up to place the top bid of $143.68 million, which works out to a much-higher-than-expected land cost of $280 psf per plot ratio (psf ppr).

Some rival developers believe Hong Leong's breakeven cost may be around the $600 psf mark and its projected average selling price near the $700 psf level. Sources, however, suggest the group may have been eyeing a much higher average price, in the high-$800 psf range, when it cast its bid.

That would set a benchmark for a 99-year leasehold condo in the area.

Hong Leong Group executive chairman Kwek Leng Beng said in a written reply to BT: 'We can see potential in an area where some others may not... We are very familiar with this locality... There is now a lack of good and affordable residential developments in the vicinity. We are confident that there is a vibrant market there.'

The tender attracted 13 bids and marked the first time in about a year that the government had sold land for private residential development. Clearly, developers are famished for land after a stretch of strong housing sales over the past six months. The Chestnut Avenue plot in the Bukit Panjang area was on the government's reserve list when it was triggered for release after a successful application by a developer that undertook to bid at least $62 million or about $121 psf ppr.

Here are some indicators of Hong Leong's bullishness. Its bid was 2.3 times the minimum price. Seven of the 13 bids were bunched in the $169-182 psf ppr range; the winning bid was 54 to 66 per cent above this.

Hong Leong's bid was 11.3 per cent higher than the next highest offer of $251.60 psf ppr placed by rival Far East Organization. The site is not near an MRT station but one advantage of its location is that units on the upper floors of a condo on the site will enjoy views of the nature reserve next to Upper Peirce Reservoir. Hong Leong's new project on the site is expected to be profitable, but it remains to be seen just how high a price it will be able to achieve.

The aggressive winning bid has set the stage for toppish bids at next month's tender for a 'hotter' site at Dakota Crescent next to an MRT station, fronting Geylang River and much closer to the city. It will also raise pressure on other reserve list sites that are triggered. In other words, land prices are set to escalate. Ditto for the prices at which developers later market new projects on these sites.

Mr Kwek insists that the outcome of the Chestnut Avenue tender shows the reserve list system - where the government launches a site for tender only upon successful application by a developer - is working well. 'The property market has still not fully recovered yet and although the economy is improving, it has not recovered too,' he added.

Last October, the government suspended sales of sites on the confirmed list, where sites are launched for tender according to scheduled dates. Instead, it has offered sites solely through the reserve list; this market-led approach was thought to be suitable amid the housing sales slump at the time.

However, in the first seven months of this year, developers sold a stunning 10,017 private homes - more than double the 4,264 units they sold in the whole of 2008. This has enabled developers to flex their muscles. Prices of mass-market condos today are about 10-15 per cent higher than the lows of Jan-Feb 2009, according to one developer's estimate.

One reading of last week's tender result is that some developers do not believe the pace of land sales from the reserve list will be fast enough for them to replenish their mass-market housing landbanks - despite the fact that three such sites had already been triggered in the one month preceding last week's tender close. And the likes of Mr Kwek thus need to bid aggressively to get their hands quickly on some much-needed land.

Here's a possible signal he may have inadvertently sent to the authorities, who are keen to assure the home buying public there is enough supply of private homes and land: please expedite the release of more land.

There may be a case now for government to transfer a few of the nicer sites from the current reserve list to the confirmed list, and start launching them soon. It could also replenish the reserve list.

But selling land only through the reserve list - where government waits for a developer to apply for a site and undertake to bid at a minimum price acceptable to the state before it launches the site - can take some time.

It may be opportune for government to take the unprecedented step of restarting confirmed list land sales midway through the current suspension for H2 2009.

Time is of the essence now as developers run out of land to build entry-level private condos on. And keeping the dream of upgrading to a private condo within reach of HDB upgraders is an important part of the Singapore housing story.

Demand For Mass Market Homes Stable: Wing Tai

Source : The Straits Times, August 26 2009

Chairman is upbeat but expresses uncertainty over high-end segment

SINGAPORE'S property market looks set for recovery, although the ride ahead is not likely to be smooth, according to the chairman of property developer Wing Tai Holdings.

Wing Tai Holdings has sold at least 144 units at the Ascentia Sky development at $1,200 to $1,300 psf. -- ST PHOTO: DESMOND WEE

Mr Cheng Wai Keung, speaking yesterday at Wing Tai's full-year results briefing at Fairmont Singapore, said the mass market segment had probably stabilised and he was cautiously optimistic about the mid-end segment.

The only market area he was not so bullish about was at the high end, where recovery was uncertain in the absence of a global recovery.

Mr Cheng said demand - particularly for mass market homes - had soared in recent months.

Since July 1, Wing Tai has sold 269 units worth $575 million at Belle Vue Residences in Oxley Walk, Ascentia Sky in Alexandra Road and Floridian in Bukit Timah.

This compares with sales of 100 residential units worth $208.5 million for the 12 months to June 30, the end of its financial year.

Liquidity and pent-up demand, particularly in the mass market, had been driving sales, said Mr Cheng.

The economy in Asia and Singapore is not in as bad a shape as people had expected at the beginning of the year, he added. Also, retrenchments have not been as severe as initially thought.

However, the worry of a possible W-shaped recovery remains, said Mr Cheng.

'I would like to say that the market has recovered but, being a cautious person, I cannot believe that it's a V-shaped recovery,' he said.

'The fact remains that the general economy in the West has not recovered. The real economy in the West - which is the engine for the world economy - has far from recovered.'

Mr Cheng mentioned that the property market recovered around 1999 and 2000 from the Asian financial crisis, only to crash again, but quickly added that this time, the whole world had put in place stimulus packages to re-ignite growth.

Wing Tai's chairman stressed that the property market was very sentiment-driven. 'What I can say is that the mass market has probably recovered,' he said.

He pointed out that mass market homes represented good value given that their prices three months ago had still not recovered their 2007 peak.

The high-end segment - where Wing Tai is a keen player - is another story, he said, and required a lot more wealth than is being generated by the economy now.

Wing Tai did manage to sell a few units at Belle Vue for $2,400 per sq ft (psf) recently, although the condo units' average pricing is close to $1,800 psf - which is easily 10 to 15 per cent below the level it would have priced the units at during the 2007 boom, said Mr Cheng.

It has disposed of just under 100 units at the 176-unit Belle Vue. It has also sold at least 144 units at the 373-unit Ascentia Sky at $1,200 to $1,300 psf.

Wing Tai has three other high-end projects in the pipeline. It has no plans yet for these launches, though it may start construction.

Wing Tai reported a 91 per cent drop in net profit to $21 million for the full year ended June 30, mainly due to fair value losses on investment properties of $88 million.

Revenue was up 18 per cent to $507.3 million.

Excluding the fair value losses, net profit was at $108.9 million, down 31 per cent from a year ago.

The group has recommended a dividend payout of four cents - comprising a first and final dividend of three cents and a special dividend of one cent.

This is down from the six cents paid the previous year.

Earnings per share plunged 91 per cent to 2.7 cents for the full year, while net asset value per share was $2.03 at June 30 and unchanged from a year ago.

In this financial year, Wing Tai expects to collect further sales proceeds of $185 million when The Riverine by the Park and Casa Merah are completed.

Its shares closed three cents higher yesterday at $1.81.