Source : The Straits Times, Sep 10, 2008
HIGH-END home prices have dropped by about 15 per cent to 20 per cent and will 'stabilise at this level', Wing Tai Holdings deputy chairman Edmund Cheng said yesterday.
The United States sub-prime crisis has affected Singapore's property market, he said.
Transactions here in the first half of the year have dropped by about 77 per cent from the same period last year, he added.
'In recent launches and resale of high-end properties, the market experienced about a 15 per cent to 20 per cent drop, but I believe we're going to stabilise here.'
Many developers have strong balance sheets and acquired properties before the property boom last year, so they are sitting on profits and 'will not be forced to sell below what they believe is the right price', he said.
The era of condominiums selling out within days of their launch is over, he said. Property sales in Singapore will see a more 'normal pace', with decent-sized projects taking six months to a year to sell out.
Home prices have 'peaked for now', but they will not crash as long as developers and home sellers hold on to their properties, he added.
Asked about concerns of further home price falls and a potential supply glut in 2010, Mr Cheng replied that these would depend on whether the US financial crisis would deepen.
'If it's really bad, obviously Singapore will be affected. In the meantime, we won't see that (happening).'
Singapore's burgeoning population, especially foreigners who come to the country to live and work, will be able to absorb this supply, he said.
He was speaking on the second day of the annual Forbes Global CEO Conference, held at the Shangri-La hotel.
In a session titled 'Rolling the dice on real estate', a panel of speakers, including Mr Ronnie Chan, the chairman of Chinese developer Hang Lung Properties, spoke on pressing real estate issues.
Mr Chan said China's real estate market had been affected more by domestic economic conditions than the US crisis.
'Real estate is a long-term asset. Some short-term impact will be inevitable, but in the longer-term view, it's not as serious,' he said.
Mr Stanley Gale, the chairman and managing partner of Gale International, a New York-based property developer, said the US sub-prime crisis was a banking crisis, 'not a real estate one'.
It is more difficult for developers to get financing in the US now. Despite the nervousness, however, the market has strong fundamentals, he said.
The office market, for example, especially in the Central Business District, has held on very well, he said. 'The US is open to new ideas and quick to change.'
With the efforts by the US authorities to take over ailing mortgage finance giants Fannie Mae and Freddie Mac, and the US presidential elections in November, 'we'll see a different economy in the US going into 2009'.
Wednesday, September 10, 2008
Soft launch for Beach Road condo
Source : The Straits Times, Sep 10, 2008
THE weak property market has forced developer Hong Fok Corp to shun the traditional glitzy condo launch in favour of a 'soft' release of some flats for its new Beach Road project.
The firm is initially releasing 90 flats in the 360-unit Concourse Skyline. An additional 30 units may be sold if demand is strong enough.
'If we can sell 120 units, we'll call it a day,' said Hong Fok director S.E. Cheong. 'We would hold back the rest until the market improves.'
Prices for the one- to four-bedroom apartments will be between $1,500 and $1,800 per sq ft (psf) - or from just below $1 million to around $4.2 million. Sea-facing units will cost $300 psf more than those facing the city, said Mr Cheong.
The 99-year leasehold project near Kampong Glam, next to Parkroyal Hotel, has two tower blocks - one with 40 storeys, the other, 28. About 60 per cent of the flats are one-bedders of about 800 sq ft and two-bedders of around 1,000 sq ft. There are also some penthouses.
There will be a podium block with shops on the first storey and 18 units that Hong Fok will keep for rental. Hong Fok will spend about $200 million to build the Concourse Skyline.
THE weak property market has forced developer Hong Fok Corp to shun the traditional glitzy condo launch in favour of a 'soft' release of some flats for its new Beach Road project.
The firm is initially releasing 90 flats in the 360-unit Concourse Skyline. An additional 30 units may be sold if demand is strong enough.'If we can sell 120 units, we'll call it a day,' said Hong Fok director S.E. Cheong. 'We would hold back the rest until the market improves.'
Prices for the one- to four-bedroom apartments will be between $1,500 and $1,800 per sq ft (psf) - or from just below $1 million to around $4.2 million. Sea-facing units will cost $300 psf more than those facing the city, said Mr Cheong.
The 99-year leasehold project near Kampong Glam, next to Parkroyal Hotel, has two tower blocks - one with 40 storeys, the other, 28. About 60 per cent of the flats are one-bedders of about 800 sq ft and two-bedders of around 1,000 sq ft. There are also some penthouses.
There will be a podium block with shops on the first storey and 18 units that Hong Fok will keep for rental. Hong Fok will spend about $200 million to build the Concourse Skyline.
Hong Fok Launches 360-Unit Residential Property At Concourse
Source : Channel NewsAsia, 09 September 2008
The 88 serviced apartments at the Concourse will be redeveloped into a 360-unit residential property. Developer Hong Fok Corporation said the 99-year leasehold units will be "priced to sell" in today's softer property market.
Ninety units of Concourse Skyline will be launched over the next few days in Singapore and Hong Kong. They will be sold at a price of between S$1,580 and S$1,800 psf – about S$1.3 million for a single bedroom unit.
Joseph Tan, executive director, Residential, CB Richard Ellis, said: "This year, in terms of a broad range of transactions, we still see transactions between S$1,500 and S$3,300 psf. So in a sense, we are a bit below that. That's why it's priced to sell."
Hong Fok said while the current serviced residences saw occupancy rates hover around 90 per cent, those units only used up about 60 per cent of the total space available. The remaining 40 per cent was wasted on corridor space.
The developer will tear down the current two towers and rebuild them with the same facade at an estimated S$200 million.
Hong Fok said construction costs are expected to soften by the time building works start in early 2009 and the development will be ready for accommodation by end-2012.
Concourse Skyline will offer a view of the Marina Bay Sand integrated resort and the Singapore Sports Hub.
Units at the 40-storey and 28-storey towers will be designed by top architect Philip Cox, and will include one- to four-bedroom apartments, sky suites, penthouses and super penthouses.
Hong Fok is positive on market sentiment and said it has already received enquiries on about 25 units.
Cheong Sim Eng, executive director, Hong Fok Corporation, said: "With the buyers on hand, we wouldn't want to wait. We have planned this more than two and a half years ago. With the F1 coming, we don't need to wait for a better time to launch."
Analysts from DTZ and CB Richard Ellis noted that three multi-billion-dollar projects – the Kallang Riverside, the Ophir-Rochor Corridor and Marina Bay – surround Concourse Skyline, putting it in good stead for capital appreciation and future rental potential. - CNA/so
The 88 serviced apartments at the Concourse will be redeveloped into a 360-unit residential property. Developer Hong Fok Corporation said the 99-year leasehold units will be "priced to sell" in today's softer property market.
Ninety units of Concourse Skyline will be launched over the next few days in Singapore and Hong Kong. They will be sold at a price of between S$1,580 and S$1,800 psf – about S$1.3 million for a single bedroom unit.Joseph Tan, executive director, Residential, CB Richard Ellis, said: "This year, in terms of a broad range of transactions, we still see transactions between S$1,500 and S$3,300 psf. So in a sense, we are a bit below that. That's why it's priced to sell."
Hong Fok said while the current serviced residences saw occupancy rates hover around 90 per cent, those units only used up about 60 per cent of the total space available. The remaining 40 per cent was wasted on corridor space.
The developer will tear down the current two towers and rebuild them with the same facade at an estimated S$200 million.
Hong Fok said construction costs are expected to soften by the time building works start in early 2009 and the development will be ready for accommodation by end-2012.
Concourse Skyline will offer a view of the Marina Bay Sand integrated resort and the Singapore Sports Hub.
Units at the 40-storey and 28-storey towers will be designed by top architect Philip Cox, and will include one- to four-bedroom apartments, sky suites, penthouses and super penthouses.
Hong Fok is positive on market sentiment and said it has already received enquiries on about 25 units.
Cheong Sim Eng, executive director, Hong Fok Corporation, said: "With the buyers on hand, we wouldn't want to wait. We have planned this more than two and a half years ago. With the F1 coming, we don't need to wait for a better time to launch."
Analysts from DTZ and CB Richard Ellis noted that three multi-billion-dollar projects – the Kallang Riverside, the Ophir-Rochor Corridor and Marina Bay – surround Concourse Skyline, putting it in good stead for capital appreciation and future rental potential. - CNA/so
Tender Closed On Site At New Upper Changi Road; Top Bid Hits S$282 PSF
Source : Channel NewsAsia, 09 September 2008
The URA has closed the tender on a residential site along New Upper Changi Road, with the highest bid coming in at S$84 million from TID.
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This translates to S$282 per square foot (psf) per plot ratio, said CB Richard Ellis.
The 9,875.5 square metre site attracted seven bidders.
CB Richard Ellis said the high number of bidders showed that developers still have an appetite for favourable sites even in the current depressed market.
Based on the highest bid, the consultancy estimates that the break even price for the location could be S$700 to S$750 psf. This translates to a potential sale price range of S$800 to S$850 psf.
Comparable developments in the area, such at the Waterfront Waves condominium near Bedok Reservoir, is going for S$800 psf on the resale market. - CNA/vm
The URA has closed the tender on a residential site along New Upper Changi Road, with the highest bid coming in at S$84 million from TID.
+Logo.gif)
This translates to S$282 per square foot (psf) per plot ratio, said CB Richard Ellis. The 9,875.5 square metre site attracted seven bidders.
CB Richard Ellis said the high number of bidders showed that developers still have an appetite for favourable sites even in the current depressed market.
Based on the highest bid, the consultancy estimates that the break even price for the location could be S$700 to S$750 psf. This translates to a potential sale price range of S$800 to S$850 psf.
Comparable developments in the area, such at the Waterfront Waves condominium near Bedok Reservoir, is going for S$800 psf on the resale market. - CNA/vm
Tanah Merah Residential Site Attracts 7 Bids
Source : The Straits Times, Sep 10, 2008
A TENDER for a choice residential development site right next to Tanah Merah MRT station has attracted a healthy seven bids - proving that even in a subdued market, location is king.
TID placed the highest bid - $84 million, or $282 per sq ft (psf) of potential gross floor area, the Urban Redevelopment Authority said yesterday.
The firm is a partnership between the Hong Leong Group and Japan's leading real estate company Mitsui Fudosan,
Its bid is 12 per cent above the second highest bid - from Sim Lian Land - at $75 million or about $252 psf of potential gross floor area.
Boon Keng Development was third at $61.88 million or about $208 psf of potential gross floor area.
Other bids were much lower, with First Changi Development coming in last at $44.63 million.
The seven bids were a strong showing. 'It's a positive shot in the arm for the property market where sentiment is concerned,' said Knight Frank's head of research and consultancy Nicholas Mak.
He said the 99-year leasehold Tanah Merah Kechil Avenue site generated healthy interest as it is next to an MRT station.
'In light of the current cautious sentiment in the residential market, the amount of interest that this site has generated provides evidence that land parcels in good locations with immediate accessibility to transport links are still sought after by developers,' said CBRE Research director Leonard Tay.
TID's bid is lower than the $318.50 psf per plot ratio price achieved for the nearby Casa Merah site back in 2006.
Property consultants said the breakeven cost of a condo at the Tanah Merah site should be at $700 psf to $750 psf, based on the top bid. This means that TID, if awarded the site, would be able to sell condo units at between $800 psf and $850 psf, they say.
A TENDER for a choice residential development site right next to Tanah Merah MRT station has attracted a healthy seven bids - proving that even in a subdued market, location is king.
TID placed the highest bid - $84 million, or $282 per sq ft (psf) of potential gross floor area, the Urban Redevelopment Authority said yesterday.
The firm is a partnership between the Hong Leong Group and Japan's leading real estate company Mitsui Fudosan,
Its bid is 12 per cent above the second highest bid - from Sim Lian Land - at $75 million or about $252 psf of potential gross floor area.
Boon Keng Development was third at $61.88 million or about $208 psf of potential gross floor area.
Other bids were much lower, with First Changi Development coming in last at $44.63 million.
The seven bids were a strong showing. 'It's a positive shot in the arm for the property market where sentiment is concerned,' said Knight Frank's head of research and consultancy Nicholas Mak.
He said the 99-year leasehold Tanah Merah Kechil Avenue site generated healthy interest as it is next to an MRT station.
'In light of the current cautious sentiment in the residential market, the amount of interest that this site has generated provides evidence that land parcels in good locations with immediate accessibility to transport links are still sought after by developers,' said CBRE Research director Leonard Tay.
TID's bid is lower than the $318.50 psf per plot ratio price achieved for the nearby Casa Merah site back in 2006.
Property consultants said the breakeven cost of a condo at the Tanah Merah site should be at $700 psf to $750 psf, based on the top bid. This means that TID, if awarded the site, would be able to sell condo units at between $800 psf and $850 psf, they say.
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