Source : The Business Times, July 18, 2008
JLL predicts up to 4.5% dip in typical prime district rents
RENTS and resale prices of housing in the central and prime districts could be hit this year and next depending on the crunch in the US market, says Jones Lang LaSalle (JLL).
In the worst case scenario, the real estate consultancy firm projects a 3.5 to 4.5 per cent drop in rents in the typical prime districts by year-end. 'Compared to recent rental rises, this remains a relatively small decline,' said JLL's managing director in South-east Asia and Singapore, Chris Fossick. The central districts could experience a bigger 5 to 7 per cent drop in rents in 2009.
The anticipated completion of some 15,000 units between 2008 and 2009 is likely to cause rents to ease, as new islandwide supply is likely to surpass the average 10-year take up of 6,600-6,800 units, JLL said in a statement yesterday. Most completed supply could appear in the central districts.
Average resale prices in the central districts could ease about one per cent by 2009, while prices in the luxury prime districts could dive 11-13 per cent.
Mr Fossick referred to the forecasts as 'more of a worst-case scenario' should the US market not pick up soon. He said that sentiment will improve once US housing shows signs of recovery. Singapore's fundamentals are attractive to investors and demand will return when uncertainty clears, he added.
Investors might then realise that 'there is less supply now than we thought there was' - and prices may rise again.
Taking a medium to longer-term view, Mr Fossick said: 'We are seeing a dramatic fall in potential future supply in Singapore due to a stall in collective sales.'
JLL said that there were only two transactions worth $55.3 million in the first half of this year, compared with 51 deals worth $9.33 billion in the same period last year.
Mr Fossick said that there is also less supply from the confirmed list of the Government Land Sales Programme for the second half of the year.
Prime districts are already seeing slightly weaker rents as expatriates with lower housing budgets move to non-prime areas. JLL data showed that in the first half of the year, luxury prime rents fell one per cent and typical prime rents dropped 2 per cent.
Properties in the central districts in turn became more popular for leasing. Average rents there rose 11 per cent and surpassed those of typical prime properties for the first time in H1 this year.
JLL data also showed average resale prices softening in some areas. Luxury prime property prices eased 4.9 per cent to $2,595 per square foot (psf) in the first half of the year, while central district prices eased 0.5 per cent to $1,020 psf.
The shift of rental demand from the prime to central districts has sustained investor interest in central district property, according to JLL.
The mass market stood out with 3 per cent growth in resale prices to around $690 psf in H1, and JLL projected that prices could stay at this level in 2009.
Friday, July 18, 2008
JL LaSalle Says Singapore's Prime Property Market To Ease Further
Source : Channel NewsAsia, 17 July 2008
Rents in Singapore's prime residential sector are expected to ease further. Consultancy firm Jones Lang LaSalle has projected a 4.5 per cent contraction for the whole year. The sector has already weakened by two per cent year to date.
In its mid-year review on the Singapore property market, Jones Lang LaSalle also noted an easing in the resale prices of luxury projects in the prime districts.
However, it said that mass market homes saw healthy growth of some three per cent.
High rentals are forcing expatriates on lower housing budgets to move out of the prime market in Singapore and this is behind softening rents this year. This is expected to persist into 2009, when more housing units will likely enter the market.
An anticipated 15,000 units are expected to be completed by the end of 2009, compared to an average take up of 6,800 units per annum.
According to Jones Lang LaSalle, what may help prop up rentals is demand. It noted that companies in Singapore are still expanding, going by the take-up in office space.
Christopher Fossick, Managing Director, Singapore & Southeast Asia, Jones Lang LaSelle, said: "There is still an influx of people coming here to work and there is a strong expatriate demand in all business sectors."
Meanwhile, in the resale market, the average prices of units in the prime districts eased by some 4.9 per cent in the first half of this year.
However, this may change. Collective sales have been a key source of land for new projects in the prime areas and with these drying up, home prices may be pushed upwards.
Mr Fossick continued: "There's been almost no residential collective sales this year. Volume has gone down 97 per cent by our records in the first half versus the first half in 2007. In 12 to 24 months’ time, we're going to see that impacting the market. There's also far less supply from luxury collective sales sources."
Over in the mass market, prices have been holding up, climbing by some three per cent in the first half of 2008 due to demand from dislodged collective sale owners and those upgrading from government flats. - CNA/vm
Rents in Singapore's prime residential sector are expected to ease further. Consultancy firm Jones Lang LaSalle has projected a 4.5 per cent contraction for the whole year. The sector has already weakened by two per cent year to date.
In its mid-year review on the Singapore property market, Jones Lang LaSalle also noted an easing in the resale prices of luxury projects in the prime districts.
However, it said that mass market homes saw healthy growth of some three per cent. High rentals are forcing expatriates on lower housing budgets to move out of the prime market in Singapore and this is behind softening rents this year. This is expected to persist into 2009, when more housing units will likely enter the market.
An anticipated 15,000 units are expected to be completed by the end of 2009, compared to an average take up of 6,800 units per annum.
According to Jones Lang LaSalle, what may help prop up rentals is demand. It noted that companies in Singapore are still expanding, going by the take-up in office space.
Christopher Fossick, Managing Director, Singapore & Southeast Asia, Jones Lang LaSelle, said: "There is still an influx of people coming here to work and there is a strong expatriate demand in all business sectors."
Meanwhile, in the resale market, the average prices of units in the prime districts eased by some 4.9 per cent in the first half of this year.
However, this may change. Collective sales have been a key source of land for new projects in the prime areas and with these drying up, home prices may be pushed upwards.
Mr Fossick continued: "There's been almost no residential collective sales this year. Volume has gone down 97 per cent by our records in the first half versus the first half in 2007. In 12 to 24 months’ time, we're going to see that impacting the market. There's also far less supply from luxury collective sales sources."
Over in the mass market, prices have been holding up, climbing by some three per cent in the first half of 2008 due to demand from dislodged collective sale owners and those upgrading from government flats. - CNA/vm
$3b Farrer Condo Boasts Sensuous, Curvy Towers
Source : The Straits Times, July 18, 2008
Renowned architect Zaha Hadid behind their design; project to be launched in 2009
PROPERTY giant CapitaLand has unveiled the 'branded' upmarket designs for a $3 billion residential project in Farrer Road that it aims to launch next year.
UNIQUE DESIGN: The as-yet-unnamed condo's 36-storey towers will feature a series of sensuous lines not commonly seen in residential developments in Singapore. The penthouse units (left) in the project offer good views. The project will be launched in the first half of next year. -- PHOTOS: CAPITALAND
The as-yet-unnamed condominium boasts a series of sensuous lines that are not commonly seen in residential projects in Singapore, while the curving towers give an ultra-modern feel without the harsh edges present on many blocks.
It is all very much in the recognised style of architect Zaha Hadid, the first female recipient of the coveted Pritzker Architecture Prize.
This is her first condo project in Singapore but she has designed two bungalows for niche developer Elevation Developments.
Past Pritzker Architecture Prize winners include Mr Frank Gehry, Sir Norman Foster and Mr Rem Koolhaas.
The seven 36-storey blocks on the sprawling 838,488 sq ft site will hold about 1,500 homes. There will also be six pairs of unique semi-detached houses.
CapitaLand is developing the 99-year leasehold plot with three partners. Hotel Properties and a Morgan Stanley Real Estate fund will each hold 22.5 per cent, while Wachovia Development will take 20 per cent.
These parties, which borrowed a whopping $1.996 billion for the ambitious project, yesterday held a signing ceremony for the loan with their bankers at the Four Seasons Hotel.
It is the largest syndicated residential property development loan ever arranged in Singapore and comes amid a slow housing scene and tight credit markets.
CapitaLand said the deal comprises a $1.362 billion term loan, $500 million of revolving credit and $133.9 million in bank guarantees.
The collective sale deal for the former Farrer Court condo site was inked in June last year at $1.338 billion, or up to $783 per sq ft (psf) of potential gross floor area.
Ms Patricia Chia, chief executive of CapitaLand Residential Singapore, said the project's break- even cost is around $1,350 psf to $1,450 psf.
The condo will be launched in the first half of next year.
Developers generally see no need to hurry given the slow property sector, falling share markets and continuing bad news from the United States.
CapitaLand chief executive Liew Mun Leong said at the signing ceremony that the past few months have been challenging, but the business world must go on, notwithstanding the current economic turbulence in the US.
He said bankers, developers, businesses and potential partners could come together to exploit opportunities that increase during bad times.
Mr Liew added later: 'Sentiment has been affected in the US, but I think the fundamentals in Asia - in terms of economic growth, the demand, urbanisation - are still very strong.'
Renowned architect Zaha Hadid behind their design; project to be launched in 2009
PROPERTY giant CapitaLand has unveiled the 'branded' upmarket designs for a $3 billion residential project in Farrer Road that it aims to launch next year.
UNIQUE DESIGN: The as-yet-unnamed condo's 36-storey towers will feature a series of sensuous lines not commonly seen in residential developments in Singapore. The penthouse units (left) in the project offer good views. The project will be launched in the first half of next year. -- PHOTOS: CAPITALAND
The as-yet-unnamed condominium boasts a series of sensuous lines that are not commonly seen in residential projects in Singapore, while the curving towers give an ultra-modern feel without the harsh edges present on many blocks.It is all very much in the recognised style of architect Zaha Hadid, the first female recipient of the coveted Pritzker Architecture Prize.
This is her first condo project in Singapore but she has designed two bungalows for niche developer Elevation Developments.
Past Pritzker Architecture Prize winners include Mr Frank Gehry, Sir Norman Foster and Mr Rem Koolhaas.
The seven 36-storey blocks on the sprawling 838,488 sq ft site will hold about 1,500 homes. There will also be six pairs of unique semi-detached houses.
CapitaLand is developing the 99-year leasehold plot with three partners. Hotel Properties and a Morgan Stanley Real Estate fund will each hold 22.5 per cent, while Wachovia Development will take 20 per cent.
These parties, which borrowed a whopping $1.996 billion for the ambitious project, yesterday held a signing ceremony for the loan with their bankers at the Four Seasons Hotel.
It is the largest syndicated residential property development loan ever arranged in Singapore and comes amid a slow housing scene and tight credit markets.
CapitaLand said the deal comprises a $1.362 billion term loan, $500 million of revolving credit and $133.9 million in bank guarantees.
The collective sale deal for the former Farrer Court condo site was inked in June last year at $1.338 billion, or up to $783 per sq ft (psf) of potential gross floor area.
Ms Patricia Chia, chief executive of CapitaLand Residential Singapore, said the project's break- even cost is around $1,350 psf to $1,450 psf.
The condo will be launched in the first half of next year.
Developers generally see no need to hurry given the slow property sector, falling share markets and continuing bad news from the United States.
CapitaLand chief executive Liew Mun Leong said at the signing ceremony that the past few months have been challenging, but the business world must go on, notwithstanding the current economic turbulence in the US.
He said bankers, developers, businesses and potential partners could come together to exploit opportunities that increase during bad times.
Mr Liew added later: 'Sentiment has been affected in the US, but I think the fundamentals in Asia - in terms of economic growth, the demand, urbanisation - are still very strong.'
CapitaLand To Build 1,500 High-End Homes On Site Off Farrer Road
Source : Channel NewsAsia, 17 July 2008
CapitaLand intends to build an estimated 1,500 mid- to high-end homes in prime District 10 on a site that currently houses the Farrer Court estate.
The developer and its partners bought the site off Farrer Road in a collective sale last June for some S$1.34 billion.
Revealing plans for the project on Thursday, CapitaLand said the new development will have seven blocks of 36-storeys each, with mainly two, three and four bedroom units. The development will also include 12 garden villas.
The unnamed project is expected to be launched in the first half of 2009.
CapitaLand said it is targeting high net worth individuals, both in and outside of Singapore.
Liew Mun Leong, President & CEO of CapitaLand Group, said: "They can choose Hong Kong, they can choose Shanghai, but I think that Singapore is the most attractive. It has good connectivity, good infrastructure and is a very safe investment."
CapitaLand expects the breakeven cost to range between S$1,350 and S$1,450 per square foot.
Industry watchers said that depending on the market conditions at the time of the launch, the new units could fetch between S$1,500 and S$1,800 per square foot on average.
The entire project will cost S$3 billion in total. CapitaLand and its partners have signed an agreement for a loan of S$2 billion to fund development costs.
Mr Liew continued: "The sentiments have been affected in US, but I think here in Asia in terms of economic growth, the demand and urbanisation is still very strong for us. So I think the effect is something I am not overly concerned about."
Farrer Court currently has 618 private apartment units. The 99-year leasehold site spans 838,488 square feet and has a maximum gross plot ratio of 2.8.
It is within walking distance of the future Farrer MRT station. - CNA/vm
CapitaLand intends to build an estimated 1,500 mid- to high-end homes in prime District 10 on a site that currently houses the Farrer Court estate.
The developer and its partners bought the site off Farrer Road in a collective sale last June for some S$1.34 billion.
Revealing plans for the project on Thursday, CapitaLand said the new development will have seven blocks of 36-storeys each, with mainly two, three and four bedroom units. The development will also include 12 garden villas. The unnamed project is expected to be launched in the first half of 2009.
CapitaLand said it is targeting high net worth individuals, both in and outside of Singapore.
Liew Mun Leong, President & CEO of CapitaLand Group, said: "They can choose Hong Kong, they can choose Shanghai, but I think that Singapore is the most attractive. It has good connectivity, good infrastructure and is a very safe investment."
CapitaLand expects the breakeven cost to range between S$1,350 and S$1,450 per square foot.
Industry watchers said that depending on the market conditions at the time of the launch, the new units could fetch between S$1,500 and S$1,800 per square foot on average.
The entire project will cost S$3 billion in total. CapitaLand and its partners have signed an agreement for a loan of S$2 billion to fund development costs.
Mr Liew continued: "The sentiments have been affected in US, but I think here in Asia in terms of economic growth, the demand and urbanisation is still very strong for us. So I think the effect is something I am not overly concerned about."
Farrer Court currently has 618 private apartment units. The 99-year leasehold site spans 838,488 square feet and has a maximum gross plot ratio of 2.8.
It is within walking distance of the future Farrer MRT station. - CNA/vm
仲量联行：如果次贷风暴持续 豪华房产转售价可能跌一成
Source :《联合早报》July 18, 2008
次贷风暴继续吹袭，若美国房贷市场和经济在接下来半年内无法改善，仲量联行（JLL）预测，到了2009年，豪华高档房地产的转售价格可能会下滑高达11至13％，中央地区（第1到第4邮区）的平均私宅转售价，相信会降低1％，而大众私宅则很可能守住目前的价位。
在私宅租金方面，仲量联行预测，到了年底，黄金地段私宅租金可能会下滑最高达4.5％，东部地区的租金可能下滑1％，取决于美国市场的复苏情况。到了2009年，中央地区的租金可能会下滑5至7％。
仲量联行研究部主管（东南亚与新加坡）蔡炎亮博士昨天在记者会上，谈到目前私宅的收租情况。
蔡炎亮说，黄金地段私宅去年取得的高租金，正面对下跌压力，一些海外专业人士由于受不了黄金地段的高租金，开始搬迁到非黄金地段，使得黄金地段的租金在今年上半年稍微下滑（豪华私宅下跌1％，黄金地段一般住宅则已下跌2％）。
与此同时，靠近海外人士工作地点的中央地区，成为了租户的“新宠”，平均租金已上涨了11％。东部地区由于平均租金本来就低，也受到青睐，带动租金在今年上半年上涨7％。
至于今年上半年的转售市场，仲量联行根据一篮子房地产组合得出的数据显示，黄金地段豪华私宅的平均转售价格已下滑4.9％，尺价接近每平方英尺2595元，中央地区的平均转售价格虽然也下滑，但幅度只有0.5％，每平方英尺达1020元。
今年上半年的大众私宅平均转售价则增加了3％，达到每平方英尺690元，需求主要来自组屋提升者，或是集体出售项目的业主。
仲量联行新加坡与东南亚董事经理傅司克（Chris Fossick）也指出，政府售地和集体出售地段的交易开始放缓，发展商扣着项目不推出，未来的新私宅供应可能会因此开始减少。
根据仲量联行的统计，今年上半年，本地只有两宗总值5530万元的集体出售交易成交，这同去年上半年的51宗总值为93亿3000万元的交易比较，下滑幅度高达97％。
但傅司克也指出，新加坡的经济基本面依旧良好，对投资者也有一定的吸引力，因此，当市场不稳定的因素清除后，对私人房地产的需求会回升，但届时供应量可能会因以上两个因素（集体出售交易和政府售地）减少，带动房价回升。
傅司克认为，但扭转整个市场情绪的重要转捩点，同美国房地产市场传出正面信息的时间息息相关。由于我国并不处于美国经济放缓的“震中”，一旦情绪改善，投资者信心恢复，那我国房地产市场最快可能在明年就出现回弹。
次贷风暴继续吹袭，若美国房贷市场和经济在接下来半年内无法改善，仲量联行（JLL）预测，到了2009年，豪华高档房地产的转售价格可能会下滑高达11至13％，中央地区（第1到第4邮区）的平均私宅转售价，相信会降低1％，而大众私宅则很可能守住目前的价位。
在私宅租金方面，仲量联行预测，到了年底，黄金地段私宅租金可能会下滑最高达4.5％，东部地区的租金可能下滑1％，取决于美国市场的复苏情况。到了2009年，中央地区的租金可能会下滑5至7％。
仲量联行研究部主管（东南亚与新加坡）蔡炎亮博士昨天在记者会上，谈到目前私宅的收租情况。
蔡炎亮说，黄金地段私宅去年取得的高租金，正面对下跌压力，一些海外专业人士由于受不了黄金地段的高租金，开始搬迁到非黄金地段，使得黄金地段的租金在今年上半年稍微下滑（豪华私宅下跌1％，黄金地段一般住宅则已下跌2％）。
与此同时，靠近海外人士工作地点的中央地区，成为了租户的“新宠”，平均租金已上涨了11％。东部地区由于平均租金本来就低，也受到青睐，带动租金在今年上半年上涨7％。
至于今年上半年的转售市场，仲量联行根据一篮子房地产组合得出的数据显示，黄金地段豪华私宅的平均转售价格已下滑4.9％，尺价接近每平方英尺2595元，中央地区的平均转售价格虽然也下滑，但幅度只有0.5％，每平方英尺达1020元。
今年上半年的大众私宅平均转售价则增加了3％，达到每平方英尺690元，需求主要来自组屋提升者，或是集体出售项目的业主。
仲量联行新加坡与东南亚董事经理傅司克（Chris Fossick）也指出，政府售地和集体出售地段的交易开始放缓，发展商扣着项目不推出，未来的新私宅供应可能会因此开始减少。
根据仲量联行的统计，今年上半年，本地只有两宗总值5530万元的集体出售交易成交，这同去年上半年的51宗总值为93亿3000万元的交易比较，下滑幅度高达97％。
但傅司克也指出，新加坡的经济基本面依旧良好，对投资者也有一定的吸引力，因此，当市场不稳定的因素清除后，对私人房地产的需求会回升，但届时供应量可能会因以上两个因素（集体出售交易和政府售地）减少，带动房价回升。
傅司克认为，但扭转整个市场情绪的重要转捩点，同美国房地产市场传出正面信息的时间息息相关。由于我国并不处于美国经济放缓的“震中”，一旦情绪改善，投资者信心恢复，那我国房地产市场最快可能在明年就出现回弹。
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