Source : The Business Times, December 18, 2007
THE Urban Redevelopment Authority (URA) yesterday awarded a residential site at Boon Lay to Frasers Centrepoint, which put in the higher bid of $205.6 million - or $248 per sq ft per plot ratio (psf ppr) - after the tender closed last week with just two bids.
The weak response to the 99-year leasehold site caught industry watchers by surprise as mass market homes are expected to see good demand next year. Property analysts say that prices of mass market private homes could climb by about 15 per cent next year.
The site, which is bounded by Boon Lay Way and Lakeside Drive, had attracted only two bids - Frasers Centrepoint’s $205.6 million ($248 psf ppr) and GuocoLand’s $191 million ($230 psf ppr).
Both bids are below earlier market expectations of about $300 to $375 psf ppr, which were indicated in October when the tender for the site was first launched.
Despite this, market watchers predicted that URA will award the site as the government is committed to its aim of increasing housing supply.
The site, which has a gross floor area of 828,600 sq ft, is just five minutes from Lakeside MRT station.
Frasers Centrepoint plans to build an 18-storey development comprising three blocks, with a total of 600-plus apartments based on an average size of 1,300 sq ft each.
When the tender closed last week, a spokeswoman for Frasers Centrepoint described the group’s bid price as ‘conservative’. She said that the price reflects a breakeven cost of about $550 psf. ‘We would be looking at an average selling price of at least $700 psf,’ she added.
Tuesday, December 18, 2007
Private Home Sales Inch Up; Prices Remain Firm
Source : The Business Times, December 18, 2007
URA data shows 4,000 units in 70 developments with pre-requisites for sale as at end-Nov
The number of private homes sold by developers inched up 4.7 per cent to 593 units in November, up from 566 units in October.
The Urban Redevelopment Authority (URA) also revealed monthly property market data of transacted benchmark prices as well as median prices. During the month, a significant number of transactions were seen at Amber Residences, which sold 85 units at the median price of $1,392 psf, and Casa Fortuna which sold 103 units at $1,009 psf.
CBRE Research executive director Li Hiaw Ho also noted that 20 units at 8 Napier were sold at a median price of $3,557 psf and pointed out that these were likely to have been made by a single buyer.
On the performance in November, Mr Li said: 'Overall, prices are firming. Sales volume and prices in December should remain at the same levels as October and November.'
Indeed, developers told BT that launch prices are being maintained even though buyers are now a bit more'cautious'.
UIC Ltd's 192-unit Park Natura, across from Bukit Batok Nature Park, saw 56 units sold in the month at a median price of $945 psf. The price was slightly lower than the October median price of $1,022 but UIC group general manager Vito Koh explained that this was because units sold in November included those with private enclosed spaces like roof terraces.
Mr Koh said that the withdrawal of the Deferred Payment Scheme (DPS) have made buyers more cautious but added that he believes developers are not lowering prices to move units. 'Prices are not coming down, but they are not going up either,' he said.
A comparison of the median price of Amber Residence ($1,392 psf) and the reported average selling price ($1,650 psf) does appear to show that prices may have softened a little.
According to the URA data, 68 units were sold in the $1,000-$1,500 psf bracket with 16 units sold in the $1,500-$2,000 psf bracket. One unit was sold at between $2,000-$2,500 psf.
Jones Lang LaSalle head of research and consultancy Chua Yang Liang noted that launches declined significantly in the Core Central Region (CCR) by 43 per cent from the 166 in October to only 95 in November. 'The take-up or demand further reflects this softer market with 130 units absorbed - a marginal drop of 4 per cent month-on-month (MoM),' he said.
Similarly, demand in the Outside Central Region (OCR) also weakened with a 33 per cent MoM decline or only 173 units absorbed compared to 259 in October. Dr Chua pointed out that this was on the back of a larger supply of 221 units or a 28 per cent increase in the number of units launched.
'The decline in demand in OCR is a likely result of the removal of the DPS,' he explained.
In contrast, the demand in Rest of Central Region (RCR) remained strong. In November, the take-up increased by 57 per cent MoM.
Most of the transactions in the RCR were in District 15. 'Take-up in this segment is largely driven by foreign occupiers that has spilled over from the CCR,' Dr Chua added.
According to the URA data, there are over 4,000 units in 70 developments with pre-requisites for sale as at end-November. This includes mass-market offerings at Bedok Resevoir as well as high-end developments at Cairnhill.
While developers are not 'panicking' at the possibility of a slowdown in the economy, Cushman & Wakefield managing director Donald Han believes more will be 'repositioning' their launches and going directly to foreign buyers in the Middle East and North Asia.
Mr Han, who expects the total volume of transactions in Q4 2007 to be below 2,000 units, added: 'Some developers were already marketing their high-end products at the recent Mipim exhibition in Hong Kong to reach an international market.'
It is a strategy that appears to be working.
Savills Singapore director of marketing and business development Ku Swee Yong said he was pleasantly surprised at some of the benchmark prices reached in the high-end sector, with the highest price for the 40-unit Sui Generis at Balmoral Crescent increasing from $2,578 in October to $2,713 psf in November. Six units were transacted in November and the median price rose from $2,406 to $2,474 psf.
Saying that he believes that this end of the market would continue to be driven by international high net worth individuals, he revealed: 'We had a client who insisted on being first in queue for The Ritz Carlton Residence.' The client later set a new benchmark price of $4,515 psf for the Cairnhill area.
URA data shows 4,000 units in 70 developments with pre-requisites for sale as at end-Nov
The number of private homes sold by developers inched up 4.7 per cent to 593 units in November, up from 566 units in October.
The Urban Redevelopment Authority (URA) also revealed monthly property market data of transacted benchmark prices as well as median prices. During the month, a significant number of transactions were seen at Amber Residences, which sold 85 units at the median price of $1,392 psf, and Casa Fortuna which sold 103 units at $1,009 psf.
CBRE Research executive director Li Hiaw Ho also noted that 20 units at 8 Napier were sold at a median price of $3,557 psf and pointed out that these were likely to have been made by a single buyer.
On the performance in November, Mr Li said: 'Overall, prices are firming. Sales volume and prices in December should remain at the same levels as October and November.'
Indeed, developers told BT that launch prices are being maintained even though buyers are now a bit more'cautious'.
UIC Ltd's 192-unit Park Natura, across from Bukit Batok Nature Park, saw 56 units sold in the month at a median price of $945 psf. The price was slightly lower than the October median price of $1,022 but UIC group general manager Vito Koh explained that this was because units sold in November included those with private enclosed spaces like roof terraces.
Mr Koh said that the withdrawal of the Deferred Payment Scheme (DPS) have made buyers more cautious but added that he believes developers are not lowering prices to move units. 'Prices are not coming down, but they are not going up either,' he said.
A comparison of the median price of Amber Residence ($1,392 psf) and the reported average selling price ($1,650 psf) does appear to show that prices may have softened a little.
According to the URA data, 68 units were sold in the $1,000-$1,500 psf bracket with 16 units sold in the $1,500-$2,000 psf bracket. One unit was sold at between $2,000-$2,500 psf.
Jones Lang LaSalle head of research and consultancy Chua Yang Liang noted that launches declined significantly in the Core Central Region (CCR) by 43 per cent from the 166 in October to only 95 in November. 'The take-up or demand further reflects this softer market with 130 units absorbed - a marginal drop of 4 per cent month-on-month (MoM),' he said.
Similarly, demand in the Outside Central Region (OCR) also weakened with a 33 per cent MoM decline or only 173 units absorbed compared to 259 in October. Dr Chua pointed out that this was on the back of a larger supply of 221 units or a 28 per cent increase in the number of units launched.
'The decline in demand in OCR is a likely result of the removal of the DPS,' he explained.
In contrast, the demand in Rest of Central Region (RCR) remained strong. In November, the take-up increased by 57 per cent MoM.
Most of the transactions in the RCR were in District 15. 'Take-up in this segment is largely driven by foreign occupiers that has spilled over from the CCR,' Dr Chua added.
According to the URA data, there are over 4,000 units in 70 developments with pre-requisites for sale as at end-November. This includes mass-market offerings at Bedok Resevoir as well as high-end developments at Cairnhill.
While developers are not 'panicking' at the possibility of a slowdown in the economy, Cushman & Wakefield managing director Donald Han believes more will be 'repositioning' their launches and going directly to foreign buyers in the Middle East and North Asia.
Mr Han, who expects the total volume of transactions in Q4 2007 to be below 2,000 units, added: 'Some developers were already marketing their high-end products at the recent Mipim exhibition in Hong Kong to reach an international market.'
It is a strategy that appears to be working.
Savills Singapore director of marketing and business development Ku Swee Yong said he was pleasantly surprised at some of the benchmark prices reached in the high-end sector, with the highest price for the 40-unit Sui Generis at Balmoral Crescent increasing from $2,578 in October to $2,713 psf in November. Six units were transacted in November and the median price rose from $2,406 to $2,474 psf.
Saying that he believes that this end of the market would continue to be driven by international high net worth individuals, he revealed: 'We had a client who insisted on being first in queue for The Ritz Carlton Residence.' The client later set a new benchmark price of $4,515 psf for the Cairnhill area.
LC, Lum Chang Team Up With Chinese Developer For Housing Project
Source : Channel NewsAsia, 17 December 2007
LC Development and Lum Chang Holdings are teaming up with a Chinese developer, Guangzhou Weicheng Real Estate Development.
Guangzhou Weicheng is developing a largely residential project in Guangzhou, China, called The Lakefront Residence.
It comprises 199 substantially completed residential apartments for sale as well as 188 residential units that have been sold.
The project also includes commercial retail space for rental and another 240 residential units to be built and sold.
Under the agreement, LC Development and Lum Chang will act as a project consultant in the development, marketing and management of the project.
They will also help Weicheng to obtain loans of up to 200 million yuan to complete the development of the project. - CNA/vm
LC Development and Lum Chang Holdings are teaming up with a Chinese developer, Guangzhou Weicheng Real Estate Development.
Guangzhou Weicheng is developing a largely residential project in Guangzhou, China, called The Lakefront Residence.
It comprises 199 substantially completed residential apartments for sale as well as 188 residential units that have been sold.
The project also includes commercial retail space for rental and another 240 residential units to be built and sold.
Under the agreement, LC Development and Lum Chang will act as a project consultant in the development, marketing and management of the project.
They will also help Weicheng to obtain loans of up to 200 million yuan to complete the development of the project. - CNA/vm
Less Than 2,000 Units Of New Private Homes To Be Sold In Q4
Source : Channel NewsAsia, 17 December 2007
Sales of new private residential homes in Singapore look set to plateau this quarter.
According to the Urban Redevelopment Authority (URA), 593 units were sold in November, up by about 5% from the previous month.
Market watchers said they expect overall prices to rise by 5-8% for the last quarter of this year. This will bring the full year price increase to between 27% and 30%.
Based on the latest figures, analysts said they expect the number of units sold this quarter to fall below 2,000, compared to 5,129 in the second quarter and 3,450 on the third quarter.
Analysts said the withdrawal of the deferred payment scheme took some wind out of the market, but strong economic fundamentals meant the mass market segment will see strong interest well into 2008.
"I think we'll probably be in a region of about 5-8%, in terms of the increase (in price) for the fourth quarter. That brings the overall close to about 30% and I think that's still respectable, considering that the main movement of the market came about during the first 7 months of this year," said Donald Han, Managing Director of Cushman & Wakefield.
In November, 80% of the units sold were in the mid-tier or mass market segments. This follows from October, when there was a more than 50% drop in the the number of units sold in the core central region.
However, prices held up despite another bout of bad news over the US housing mortgage crisis last month.
The Ritz-Carlton Residences, for example, sold 2 units out of 3 put up for sale at S$4,515 per square foot.
Consultants said developers are turning to untapped overseas markets like South Korea and the Middle East.
Han said: "There's been also potential focus on targeting the Russian market. There are a lot of high net worth individuals coming from Moscow looking to buy properties in Singapore.
"These are all non-traditional areas that developers are targeting on, and some have already embarked on this, other than targeting on the usual suspects of foreign investors from Indonesia or Hong Kong."
About 15,000 units are expected to be sold for the whole year, or 34% more than in 2006.
Analysts are forecasting property prices to go up by 10-15% next year. - CNA /ls
Sales of new private residential homes in Singapore look set to plateau this quarter.
According to the Urban Redevelopment Authority (URA), 593 units were sold in November, up by about 5% from the previous month. Market watchers said they expect overall prices to rise by 5-8% for the last quarter of this year. This will bring the full year price increase to between 27% and 30%.
Based on the latest figures, analysts said they expect the number of units sold this quarter to fall below 2,000, compared to 5,129 in the second quarter and 3,450 on the third quarter.
Analysts said the withdrawal of the deferred payment scheme took some wind out of the market, but strong economic fundamentals meant the mass market segment will see strong interest well into 2008.
"I think we'll probably be in a region of about 5-8%, in terms of the increase (in price) for the fourth quarter. That brings the overall close to about 30% and I think that's still respectable, considering that the main movement of the market came about during the first 7 months of this year," said Donald Han, Managing Director of Cushman & Wakefield.
In November, 80% of the units sold were in the mid-tier or mass market segments. This follows from October, when there was a more than 50% drop in the the number of units sold in the core central region.
However, prices held up despite another bout of bad news over the US housing mortgage crisis last month.
The Ritz-Carlton Residences, for example, sold 2 units out of 3 put up for sale at S$4,515 per square foot.
Consultants said developers are turning to untapped overseas markets like South Korea and the Middle East.
Han said: "There's been also potential focus on targeting the Russian market. There are a lot of high net worth individuals coming from Moscow looking to buy properties in Singapore.
"These are all non-traditional areas that developers are targeting on, and some have already embarked on this, other than targeting on the usual suspects of foreign investors from Indonesia or Hong Kong."
About 15,000 units are expected to be sold for the whole year, or 34% more than in 2006.
Analysts are forecasting property prices to go up by 10-15% next year. - CNA /ls
Regent Court - From $34 Million To $0
Source : The Electric New Paper, December 18, 2007
En-bloc sale shelved because of one home-owner. Now, neighbours call him their hero
THE done deal was undone - by one household.
Regent Court in Serangoon Road was sold to a developer in April for $34million after the majority of owners approved an en-bloc sale.
But retiree TK Seah said his family opposed the sale, saying they would lose money.
They took their case to the Strata Titles Board (STB) and won. It threw out the en-bloc sale application last week.
When contacted, the STB said they considered the facts and held that one of the objectors had suffered financial loss.
Financial loss means that the en-bloc sale proceeds, after deductions allowed by STB, are less than the price the owner paid for his property.
Under the Land Titles (Strata) Act, a financial loss case provides grounds for STB to dismiss an en-bloc sale.
Mr Seah said they were promised a payout of about $900,000 for their 1,980 sq ft unit.
He said they bought their three-bedroom unit for more than $1 million in 1996.
This means a gross loss of at least $100,000 for this family, not counting their bank interest repayments.
The 81-year-old said in Hokkien: 'It didn't make much sense for us to say yes to the en-bloc sale because the payout is so little. I don't think it's right that we should lose money during the sale.'
A lawyer The New Paper spoke to, who is familiar with en-bloc applications, was surprised that the application even made it to the STB in the first place.
RARE CASE
He said such en-bloc dismissals on grounds of financial loss are rare.
The lawyer, who didn't want to be named, said: 'You can't have a successful en-bloc sale if someone has already suffered a financial loss.
'But maybe the applicants didn't know there was a financial loss case in the estate.' With a financial-loss case, the buyer of the estate will usually make good the loss suffered by the seller.
The en-bloc payouts ranged from about $560,000 for a 968sqft unit to about $1.3 million for the largest 3,121 sqft units.
With more than 80 per cent of the households (41 out of 49 units) voting for the sale, you would think Mr Seah would not be a popular figure.
But this was not the case.
RISING PRICES
This is because property prices have risen since then, and some residents believe that they could to get a better price for their estate if they put it on sale again.
When The New Paper was at the estate last week, Mr Seah was hailed a saviour by some residents who were discussing the latest en-bloc issue.
Mr Seah looked visibly embarrassed, brushed off the accolade and said: 'I was just looking out for my own interest. But I'm glad others also benefited from the STB decision.'
One resident who voted for the collective sale, a businessman who wanted to be known just as Mr Chiah, was quite relieved the sale was dismissed.
He paid about $400,000 for his two-bedroom unit over 20 years ago.
He would've received about $600,000 from the en-bloc sale.
Mr Chiah said: 'I agreed to the sale because the price was good in April. Today, I'm sure the price for this estate has gone up. So, it's actually a blessing in disguise that the en-bloc sale didn't go through this time. If we put the estate up for sale again, I'm sure we'll get a better price for it.'
Rajah & Tann, the legal counsel for Regent Development, said it is reviewing its options.
The majority homeowners' legal counsel, Legal21, also said it is doing the same at this stage.
En-bloc sale shelved because of one home-owner. Now, neighbours call him their hero
THE done deal was undone - by one household.
Regent Court in Serangoon Road was sold to a developer in April for $34million after the majority of owners approved an en-bloc sale.But retiree TK Seah said his family opposed the sale, saying they would lose money.
They took their case to the Strata Titles Board (STB) and won. It threw out the en-bloc sale application last week.
When contacted, the STB said they considered the facts and held that one of the objectors had suffered financial loss.
Financial loss means that the en-bloc sale proceeds, after deductions allowed by STB, are less than the price the owner paid for his property.
Under the Land Titles (Strata) Act, a financial loss case provides grounds for STB to dismiss an en-bloc sale.
Mr Seah said they were promised a payout of about $900,000 for their 1,980 sq ft unit.
He said they bought their three-bedroom unit for more than $1 million in 1996.
This means a gross loss of at least $100,000 for this family, not counting their bank interest repayments.
The 81-year-old said in Hokkien: 'It didn't make much sense for us to say yes to the en-bloc sale because the payout is so little. I don't think it's right that we should lose money during the sale.'
A lawyer The New Paper spoke to, who is familiar with en-bloc applications, was surprised that the application even made it to the STB in the first place.
RARE CASE
He said such en-bloc dismissals on grounds of financial loss are rare.
The lawyer, who didn't want to be named, said: 'You can't have a successful en-bloc sale if someone has already suffered a financial loss.
'But maybe the applicants didn't know there was a financial loss case in the estate.' With a financial-loss case, the buyer of the estate will usually make good the loss suffered by the seller.
The en-bloc payouts ranged from about $560,000 for a 968sqft unit to about $1.3 million for the largest 3,121 sqft units.
With more than 80 per cent of the households (41 out of 49 units) voting for the sale, you would think Mr Seah would not be a popular figure.
But this was not the case.
RISING PRICES
This is because property prices have risen since then, and some residents believe that they could to get a better price for their estate if they put it on sale again.
When The New Paper was at the estate last week, Mr Seah was hailed a saviour by some residents who were discussing the latest en-bloc issue.
Mr Seah looked visibly embarrassed, brushed off the accolade and said: 'I was just looking out for my own interest. But I'm glad others also benefited from the STB decision.'
One resident who voted for the collective sale, a businessman who wanted to be known just as Mr Chiah, was quite relieved the sale was dismissed.
He paid about $400,000 for his two-bedroom unit over 20 years ago.
He would've received about $600,000 from the en-bloc sale.
Mr Chiah said: 'I agreed to the sale because the price was good in April. Today, I'm sure the price for this estate has gone up. So, it's actually a blessing in disguise that the en-bloc sale didn't go through this time. If we put the estate up for sale again, I'm sure we'll get a better price for it.'
Rajah & Tann, the legal counsel for Regent Development, said it is reviewing its options.
The majority homeowners' legal counsel, Legal21, also said it is doing the same at this stage.
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