SG PropTalk

The Nautical (Review)

2012-02-01T23:00:00.008+08:00

The wife and I was at the sales gallery of The Nautical (Tan: this one's for you!). This is the latest 99-year leasehold project by China developer MCC Land located along Sembawang Road (District 27).

We would have liked to get to this one sooner, but the wife had taken ill for a couple of weeks and I simply cannot do this without my "partner in crime". And then came the Chinese New Year. ANYWAY...

For those unfamiliar with the location of The Nautical, the project is sandwiched between the (new/rebuilt) Sembawang Shopping Centre on one side and Canberra Residences (another private residential project by MCC Land that was launched early of last year) on the other. Entrance to The Nautical will be along Jalan Sendudok, which is a slip road between Nautical and Canberra. The sales gallery for The Nautical is located on an open field diagonally across the road from its actual site.

And for those who are more visually inclined, below is a photo (taken from the HDB block across from the showflat) showing the locations of all the "landmarks" mentioned earlier.

The Nautical is a low-rise development consisting of 435 apartment units, spreading across a whopping 17 blocks of 5-storey each. And unilke many of the new project these days, the bulk of the units at The Nautical are 3-bedroom apartments. These come in two types: 3-bedroom (standard) and 3-bedroom (premium).

So what are the differences between the two 3-bedder types, you ask? The 3-bedroom (premium) comes with:

• a utility and additional bathroom in the yard area

• a "dry" kitchen area

For those who are looking at 4-bedders, there are only 16 units of such type within the development (unless you wish to conisder the penthouses). Consolation is out of the 16, only 4 (ok, maybe 5) have been sold thus far - the wife and I have a theory on why this is so, which we will share in due course.

Click on the link below to get general info and unit type/size details on The Nautical:

http://sgproptalk.blogspot.com/2011/12/new-project-info-nautical-sembawang.html

The sales gallery was rather empty when we arrived, probably because it was a weekday afternoon. There are 2 showflat types on display within the gallery, i.e. the 3- and 4-bedder, ground-floor units. Since most of the units in The Nautical are 3-bedders, we will focus on this unit type for the purpose of our review.

As you enter the unit, you have a choice of turning left into the yard/wet kitchen (one of two entry points) or walking forward into the living/dining area. The living/dining room is a longish rectangular area and given the size, small furnitures are probably in order. You get 60cm x 60cm homogenous-tile floor (which comes with a choice of "warm" or "cool" color themes) and 2.9m ceiling height (3.1m for ground-floor units).

The apartment comes with both "wet" and "dry" kitchen area (sorry about the poor photo quality). Given the size of the apartment (i.e. interior space of no more than 1,000sqft), we actually prefer that the developer dispense with the dry kitchen as it will free up more space for the living/dining area. The "standard" 3-bedder, coincidentally, do not have a dry kitchen.

The "wet" kitchen is a small strip of an area, which is probably just sufficient for one person to work in. In terms of appliances, you get "Electrolux" hood/hob and oven. You also get an induction hob on the "dry" kitchen table-top. However, you have to purchase your own fridge. The other thing that we do not quite like about the kitchen are the cabinets, which come with "standard" hinges (slam! slam!).

The utility room will require a customized bed if intended for housing your helper. There is an additional bathroom next-door and an a space to house your washing machine. The yard is well ventilated by a set of windows, which also means that you probably can hang your laundry out of the window (we apologize again for the photo quality).

Again for the benefits of the visually inclined, below is a photo showing the orientation of each of the living spaces within the apartment.

Both the common bedrooms are tiny - you have hardly any space left after putting in the wardrobe and single bed. Maybe that is the reason why the interior designer had resorted to putting the standing hanger in the balcony!

The common bathroom is fairly good-sized and comes with homogenous-tile floors and ceramic walls. It also comes with bathroom/toilet fittings from "Roca" and "Bravat" and a standing shower stall. The wife and I found the overall design of the common bathroom somewhat basic and the color theme a tad too "plain"

The master bedroom is (you guessed it) small - again the wardrobe and Queen size practically take up all the space within, which is probably why you need to put your writing table in the blacony (?!) The developer should really find more "creative" ways to maximimze spaces within the rooms, rather than coming up with ideas that might look nice in the showflat but absolutely impractical in reality...

The master bathroom is good-sized and we liked the color scheme and design much better (than the common bathroom). However, you still get the same homogenous-tile floors/ceramic walls and shower-stall with your "standard" wall-mounted shower.

Price wise, a 1,119sqft 3-bedder unit on the 2nd floor will cost you $984,200 after a 5% discount. This translates to about $880psf. Prices to increase by about $10K with each floor up.

What we like:

• One can access the yard/wet kitchen area as you enter the main door, without having to walk across the living/dining room. This is especially handy when you are carrying all those fish/meat/vegetable bought from the wet-market.

• All the rooms are regular-shaped with no odd nooks or corners that you need to worry about.

What we dislike:
• The size of the living/dining area and all bedrooms are too small for our liking. But we reckon this is the "sacrifice" you have to make when you fit a 3-bedder apartment inside an internal space of less than 1,000sqft.

• The wife and I are perplexed by the rather huge A/C ledge that comes with each apartment - this is a space that you have little/no use but still have to pay for.

• We are not particularly impressed by the quality of finishing and fittings as seen in the showflat. Then again, maybe this is what we should expect with apartments of less than $1,000psf these days?

• Although the balcony/PES area in the showflat are clearly demarcated, the blatant use of balcony area for inappropriate purposes (writing desk?) to make the showflat looked more "spacious" is rather disappointing.

• Despite the "many" different types of facilities that you will supposed get at The Nautical, we can identify nothing with a "wow" factor. What you get are just "run of the mill" offerings with fancier names. ~~And for a rather sizable project of over 400 units, we would expect at least one tennis court but there are none.~~ (* We stand corrected - There IS a tennis court within the development afterall, as correctly pointed out by one of our readers. It is up on the rooftop of Block 99 so you may want to reconsider about stacks #97 - 102 if you are looking at apartments on the fourth floor, i.e. the tennis court is right above these units. Anyhow, we apologize for the oversight! *)

• One of the main selling point of The Nautical is that the project is supposedly "within walking distance" to the Sembawang MRT Station. However, the distance is at least 2 bus-stops away and probably a good 15 - 20mins' walk (and we don't mean a leisurely stroll). So if you intend on taking public transport, chances are that you will find the buses along Sembawang Road a more convenient option.

For those of you still waiting for our theory on the 4-bedder "take-up rate" (or the lack thereof): if you look closer at our photo of the scale-model of The Nautical, you will realize that ALL the 4-bedders are East-West facing. This means that your apartment will feel very much like a sauna on a hot humid Singapore afternoon, as it gets the full impact of the West sun.

Our Parting Shot:
We have heard alot about The Nautical and its supposed strong take-up rate before our trip to the showflat. But based on what we have seen, we are not at all impressed by the offerings. To be fair, the average psf price of below $900psf is probably one of the most attractive around. This is especially when compared to other new projects currently in the market ($980 - $1,500psf for Watertown in Punggol?!). However, the location of The Nautical (rather "ulu" and far from everything else except Sembawang Shopping Centre) and the quality of the project have left little to be desired.

Given such, we reckon The Nautical will probably only appeal to those currently living around Sembawang or nearby areas. As for the rest of us...there are always other projects that you can look at.
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Market analysts on stamp duty rebate: It's legal..!

2012-02-01T14:15:00.000+08:00

The circle will be closed when (or rather, IF) we get an official statement from our Government... but we reckon it will not deviate much from below.

Source: The Straits Times

New project sales status: Watertown, The Hilier & Parc Rosewood

2012-01-31T13:18:00.000+08:00

Watertown
Far East Organization, Fraser Centrepoint and Sekisui House continue to achieve impressive sales at Watertown in Punggol, moving 148 more units over the weekend. They have now sold 744 units in the project since Jan 18.

Transacted prices range from $980 to $1,500psf.

So far, 901 of the project's 992 units have been released. The most popular are the one and two-bedroom suites (527 - 646sqft) and the two- and three-bedroom units (904 - 1,259sqft). All 385 suites have been sold. 90% of the project's buyers are Singaporean.

Market watchers credit strong sales to the developers' marketing strategy, offering much-coveted waterfront living integrated with a mall (Waterway Point) and the Punggol MRT Station.

The Hillier
Far East Organization found buyers for another 26 residential units over the weekend, taking total sales to 386 units. It has released 479 of the project's 528 units. The most popular are one-bedroom Soho-style apartments (506 - 624sqft). Singaporeans account for over 80% of buyers.

Parc Rosewood
Fragrance Group and World Class Land have sold 181 units at Parc Rosewood condo in Woodlands since Saturday. The average price is $960psf. The five-storey, 99-year leasehold project will have 689 apartments.

A good mix of units - one, two and three bedders - have been taken up. Singaporean are believed to account for 80 - 85% of buyers, with permanent residents making up the rest. Buyers comprise singles, young couples, families and investors - some living in the surrounding Woodlands area.

Source: The Business Times

So whose afraid of the (supposed) impending private-home market slowdown..?
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And speaking of "pent-up demand"...

2012-01-31T12:20:00.006+08:00

The wife and I have a slightly different take on the matter: According to the data provided, some 128,896 private homes were available for sale duirng the period of 1995 to 2010. And since population of citizens and permanent residents during the same period had supposedly expanded by some 216,628 households, the resulting "pent-up demand" for private home ownership should easily have absorbed all private homes available during the period. But reality of the matter is that 39,184 homes remained unsold as at end of last year.

Some may attribute the unsold units to "apartment type mismatch" or "pickiness of home buyers", but perhaps a fairly significant percentage of the increased households between 1995 - 2010 are not really in the market for a new home or prefer to go on rental instead?

So the question really becomes: Is the high property prices seen over the past 2 or so years really due to genuine pent-up demand (i.e. new households that need to buy a home to live in) or is it more a function of greed (i.e. despite the already high prices and cooling measures, there's still money to be made in the property market)?

We could jolly well be wrong of course...

So is stamp duty rebate legal..?

2012-01-30T12:14:00.003+08:00

This article appeared in The Straits Times forum page today.

While pondering over the questions raised by Samuel, the wife and I also wondered about "Free COE" offered by some car dealers and "GST Rebate" by retailers. Should these practices be deemed illegal as well?

And in all fairness, the stamp duty reimbursement by FEO (as we understand it) is offered not just to foreigners but for all buyers. However, we are unsure if foreigner gets a larger stamp duty rebate so maybe Sanuel knows something that we don't. (* would anyone from/marketing for FEO care to comment? *)

Here's our "2 cents" on the matter: Rebates that allow sellers (irrespective of product) to prop up their prices artifically should be prohibited. Any discount given should be straight off the selling price so that it is transparent to all parties concerned.
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End of the private property "bull run"? (Part 2)

2012-01-29T20:45:00.000+08:00

Price declines could be exacerbated by the secondary market, where volumes have slowed down more sharply than in the primary market (that is, developer sales). The number of units (excluding executive condos, or ECs) sold by developers fell 2.4% from 16,292 units in 2010 to 15,904 units in 2011. However, the number of homes sold in the secondary market (resales and subsales combined) slipped 27.6%, from 22,608 in 2010 to 16,357 in 2011.

Developers are wooing buyers with nice showflats and appealing ad pitches. The ease of stretching out progress payments over a few years - compared with having to pay the full price upfront when buying a completed home in the secondary market - is another reason to buy a home directly from a developer.

DTZ's Asia Pacific research head Chua Chor Hoon said: "When secondary volumes come down, eventually it will affect prices. If demand slows down and sellers find it hard to sell after a few months hanging on to their prices, some owners will start to reduce prices. There will be more bargaining power for buyers as well as occupiers as rent start to ease."

URA stats also show that developers completed 12,469 private homes (excluding ECs), up 19.9% from the 10,399 in 2010. This has begun to weigh on residential rents, which are rising at a slower rate.

Savills Singapore expects a "mild correction" of 5% in rentals this year as more new apartments come on stream in the months ahead. It also expects the number of private residential leasing deals (excluding ECs) to hover around 45,000 in 2012, after hitting an all-time high of 45,062 leases last year. The figure for 2010 was 41,573.

"The strong 2011 showing may be attributed to Singapore becoming the preferred location among MNCs for their regional HQs. This has also attracted more senior and top executives to relocate here," said Savills' residential leasing head Patrick Lai.

DTZ's Ms Chua said rental pressure is greater in Core Central Region but this is likely to shift to Outside Central Region in three to four years due to expected completion of projects in suburban areas arising from the ramp-up in Government Land sales since the second half of 2010.

Source: The Business Times

End of the private property "bull run"? (Part 1)

2012-01-29T18:20:00.003+08:00

Prices rises for private homes almost ground to a halt last quarter while rental increases also tapered off. The latest official data has sparked a discussion in property circles on whether the market has peaked.

Most observers say that either the peak has already been touched, or will be touched very soon.

The Urban Redevelopment Authority's benchmark private home price index inched up just 0.2% quarter-on-quarter (q-o-q) in Q4 last year, its ninth consecutive quarter of moderation. For the full year, the index's 5.9% rise was a third of the 17.6% gain registered in 2010. The figures were identical to flash estimates released on Jan 3.

And for the first time since Q3 2009, the increase in URA's landed property sub-index was lower than that for the non-landed property sub-index. The landed sub-index rose just 0.1% q-o-q in Q4 2011, compared with 0.3% for the non-landed sub-index. In fact, for semi-detached houses, the price index actually fell 0.6% q-o-q in Q4.

" In that quarter, prices of semi-detached houses in the east fell 1.6% while those in the north-east softened by 1.3%. This shows that some segments of the landed market are facing stronger price resistance," says Credo Real Estate executive director Ong Teck Hui. " However, landed prices have risen 80% from the market trough in Q2 2009, outperforming the 48% increase for non-landed for the same period."

URA's overall rental index for private homes rose 0.4% q-o-q in Q4, or half the 0.8% rise it had posted in Q3. Full year 2011, the index was up 3.8% - a fraction of the 17.9% gain it had put on in 2010.

The outlook for private home prices look bleak. CBRE predicts a price drop of 5 - 15% this year, with luxury/prime properties taking the bigger hit and mass-market homes being the least affected.

Credo's Mr Ong says: " It's difficult for prices to regain momentum as the recently imposed ABSD (additional buyer's stamp duty) and the economic slowdown could ease demand. Sustained supply and competition among sellers will also keep a lid on prices."

Giving a different take, Savills Singapore research head Alan Cheong said: " We still believe it's difficult to conclude if we've reached an inflexion point, if any at all."

Mr Cheong cites the oligopolistic nature of the Singapore residential property market, with large developers with deep pocket who're likely to resist any price cut. " A cocktail of low interest rates till at least late-2014 (as pledged by the US Federal Reserve) and higher inflation will in due course reignite another round of interest in the residential market as it's deemed a good hedge against inflation," he said.

Credo's Mr Ong paints two scenarios. "In the best-case scenario, if the economic slowdown is milder than expected, then buying sentiment may remain positive, translating to sustained buying activity which will help to keep prices stable amid the build-up in supply. In the worst-case scenario, if there's a recession, we can expect demand to slacken, creating downward pressure on prices."

Lamenting the difficulty in making accurate predictions, Knight Frank chairman Tan Tiong Cheng said: "Each time after the government has announced cooling measures in the past two years, I thought the measures would be sufficient to cool the market. But things have turned out to be otherwise."

He admits the ABSD will have some effect in curbing investment and foreign demand for private homes. " Prices will come down - but to what degree before they go up again? What's the alternative for people with savings? Where should they put their money? If you believe in the longer term, property is as good a bet as any. After all, interest rates are expected to stay low for the next couple of years."

Source: The Business Times

{to be continued}

SG PropTalk now tweets!

2012-01-28T09:44:00.001+08:00

Yes, the wife and I have (after much deliberations) set up a twitter account for SG PropTalk.

You can now follow our twitter feeds on @SG_PropTalk (we certainly hope this is correct as we still have little clue on how Twitter works, so please correct us if we are wrong!).

Have a great weekend!

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Tampines Trilliant: Another sell-out EC in the making..?

2012-01-27T22:47:00.002+08:00

Large crowds turned up at the launch of the latest executive condominium (EC) on Friday.

Property developer Sim Lian Group said it hopes Tampines Trilliant, which is located in a mature estate, will attract couples who want to live near their parents.

But with prices as high as $971,000 for a four-room unit, will home-buyers be turned away?

The launch of Tampines Trilliant saw a large lunch-time crowd - most of whom were upgraders.

The 12-block executive condominium has 670 units for sale, comprising mostly three-bedroom units.

Prices start from $682,000 for a three-room unit and a whopping $971,000 for a four-bedroom unit.

Home buyers were mixed in their responses over the prices.

One said it was "a bit expensive", while another said: "For new launches, I believe the price is quite expected."

The property is located in the heart of Tampines, in the eastern part of Singapore, with amenities like malls, bus and train stations and even offices, nearby.

Orange Tee managing director Steven Tan said: "We expect the demand for the Tampines Trilliant to be very strong. The existing regional centre and MRT station are already strong pulling factors."

One real estate company said prices of executive condominiums are usually about 20% below those of mass market condominiums in the vicinity.

ECs were introduced to cater to Singaporeans, especially young graduates and professionals, who can afford more than an HDB flat but find private property to be out of their reach.

ECs are comparable in design and facilities to private condominiums as they are developed and sold by private developers.

ERA Realty group director Mark Teo said: "Although there will be a lot more supply of ECs coming into the market in the next six months to one year, we think that the demand for ECs will still be very strong.

"Many of us have the aspiration to live in a condominium that has facilities, so ECs actually fill this void."

A check shows that prices for the Trilliant are comparable to the Arc at Tampines, another EC in the area, which was launched late last year.

Prices there range from $700 to $800 psf.

Application for Tampines Trilliant ends on 31 January.

Source: Channel News Asia

Kim Eng Research: Price correction by mid-2012?

2012-01-27T13:35:00.004+08:00

The rapid sales at developers' launches in recent weeks will not last, Kim Eng Research said in a report released yesterday, citing the potential supply of units coming on board and wider economic uncertainty.

These factors could lead to a correction in both average selling price and sales volumes by the middle of the year, it said.

Based on the sites sold under the Government Land Sales programme (GLS) that have yet to be launched, the brokerage estimates that the potential supply coming onto the market over the next 12 months stands at 12,248 condominium units, and 2,495 executive condominium units.

Coupled with a "daunting income and employment outlook" due to economic concerns, this could make upgraders more wary come mid-2012.

"That may then lead to the precipitation of mass market prices of up to 20% by end-2013. We also expect primary market sales to be reduced to 11,000 units per annum for 2012 and 2013," said Kim Eng.

In the meantime, home buyers and property developers are back in the market with a vengeance, just one month after the introduction of the additional buyer's stamp duty (ABSD).

Watertown, in Punggol Central, for instance, has sold more than 550 units of its 992-unit mixed-development project since its preview last week. The Hillier at Hillview, too, attracted strong demand, with units transacting at an average of $1,200psf.

"In the near term, demand for attractive suburban projects may continue to be supported by the benign interest rate environment, and our economists are not expecting interest rates to hike up markedly before 2H13," said Kim Eng.

Developers were also active in vying for well-located sites during GLS tenders: in particular, the two most recent tenders at Clementi Avenue 6 and Simon Road attracted eight and 11 bids, respectively.

The top bidder for the 99-year leasehold condominium site at Clementi Avenue 6 was IOI's property unit, Multi Wealth (Singapore), at $554.4psf ppr, while the site at Kovan Road/Simon Road was awarded to a consortium comprising Hoi Hup Realty, Investment Focus and Oriental Worldwide Investments, at $506.6psf ppr.

Industry players said that bids were within the current land price range for good suburban residential sites, and that attractively located sites will probably continue to draw strong participation from developers despite the uncertain market conditions and cooling measures.

Source: The Business Times

Click on link below to read the full report by Kim Eng Research:
http://www.scribd.com/fullscreen/79538140?access_key=key-230d9no2ewn098s8c6iw

The wife and I wonder if the recent hoo-ha about "strong take-up rate" (post ABSD) at selected launches are boosted by the fact that developers have been rolling out projects in prime suburban locations (i.e. with integrated malls, near to Town Centre and MRT Stations etc).

If we are property developer ourselves (one can always dream!), we will also milk the current market to the last drop with our best sites. These then set a benchmark for other "less attractive" sites that we intend to launch around the area. And even if we have to sell at a bigger discount on the later projects when the market turns for the worse, we would have already made a killing on our earlier "prime" launches... not to mention the super-normal profits that we have accrued over the past years!

And while reading the Kim Eng report, the wife and I cannot help but notice the interest rate projections for this and next year. Some may call it "benign" but we rather see it as a false sense of security with deterimental consequences...

Below is an entry that we have posted earlier this month on the likelihood of mortgage rate increases in 2012 and its implications:
http://sgproptalk.blogspot.com/2012/01/sor-is-soaring.html
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More new launches coming our way!

2012-01-26T14:26:00.002+08:00

A string of property launches are just around the corner as developers cash in on the current strong home buying momentum created by the release of Watertown condo in Punggol.

These include Parc Rosewood in Woodlands and The Tampines Trilliant executive condo (EC), which are scheduled to be rolled out later this week.

Another EC project, Twin Waterfalls near Punggol MRT Station, is expected to go on the market next month. Market watchers are also awaiting the release of The Bartley Residences, a 702-unit, 99-year leasehold private condo next to Bartley MRT Station.

Parc Rosewood

This week, Fragrance and World Class Land are slated to release Parc Rosewood along Woodlands Avenue 2/Rosewood Drive. The average price for the five-storey, 99-year private condo is expected to be slightly above $1,000psf. The project's 689 units will be mostly one and two-bedders, although the condo will also include some three bedders. One-bedders start from 431sqft.

Word on the street is that starting prices will be nearly $400,000 for one-bedders, close to $570,000 for two-bedders and slightly below $800,000 for three bedders.

The Tampines Trilliant

Sim Lian's EC project The Tampines Trilliant is a stone's throw away from the upcoming Tampines Station on the Downtown Line. It will have 670 units in 12 blocks of 15 and 16 storeys. Sources suggest e-applications could begin as early as tomorrow. Pricing has yet to be finalised.

The majority of units will be either three bedders (127 units of between 872sqft and 1,141sqft) or three-bedroom-plus-utility units (397 units of 1,001 - 1,378sqft). remaining units are either four bedders (1,302 - 1,593sqft) or penthouses.

Twin Waterfalls

Frasers Centrepoint's Twin Waterfalls EC in Punggol will comprise 728 apartments in 17-storey blocks. Market watchers expect the average price to be slightly more than $700psf. Apartment sizes range from 914sqft for a three-bedroom compact to 1,378sqft for a four-bedroom dual key unit. There will also be penthouses of up to 1,928sqft.

Palm Isles
Frasers Centrepoint also has a 99-year private condo slated for release later this quarter or in early Q2 - Palm Isles at Flora Drive in the Upper Changi area. The seven-storey development will have about 450 units. Analysts reckon the average price could be around $900-950psf.

Source: The Business Times

So all we need now are more Singaporean buyers...
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Relatives can wait, must make CNY visit to Watertown showflat first!

2012-01-25T14:42:00.000+08:00

It's the second day of the Lunar New Year and while most were out and about visiting friends and relatives, hundreds flocked to the Watertown showflat in Punggol Central.

The $1.6 billion project has attracted brisk sales since the launch on January 20, and 500 units out of 596 released have been snapped up (as at Tuesday 9pm).

Buyers made sure they took time off from visiting relatives and friends to check out the showflats.

A lady said: "We've done visiting already. So we wanted to do some shopping around for a house. The units have already been sold pretty fast, so we are trying to grab some opportunity and see if we can get some good deals before it gets fully sold."

A man said: "This Chinese New Year, we had some spare time and I think the Watertown project is exciting. Punggol is an up and coming town to be in. Look at the vibrancy here! It's a great place to be here on Chinese New Year!"

Another shared similar sentiments: "We took some time off from visiting friends and relatives just to take a look at Watertown because we thought we just come by and look at the showflat, and of course to check out the pricing as well."

Watertown is the first integrated waterfront development in Singapore.

It is situated directly above Waterway Point that will host popular shops, boutiques and Singapore's first basement cinema.

The 992-unit development comprises Suites, SOHO apartments, Sky Patios and Residences and the price ranges from $980 to $1,500psf.

Source: Channel News Asia

Looks like FEO is the first company to "Huat" in the year of the Dragon. Then again, it is supposedly a WATER dragon this year so go figure...
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Gong Xi, Gong Xi, Gong Xi Ni..!

2012-01-22T09:28:00.002+08:00

The wife and I will be taking a short break to celebrate the festivities and partake in other leisurely persuits... OD-ing on Bak Gua and pineapple tarts, making some money (hopefully) from our friends at mahjong and blackjack etc...

We will resume posting next Wednesday (Jan 25th). Meantime, we wish all our readers an excellent Year of the Dragon ahead!

2011 vs 2010: More buying "New" than "Second Hand"...

2012-01-22T08:08:00.003+08:00

Below is an article in this weekend's edition of The Business Times.

It looks like a pretty similar trend in 2012...

SSD: So who had taken the hit and bailed?

2012-01-21T12:46:00.001+08:00

The latest issue of The Real Deals has provided some interesting insights on how the imposition of Seller's Stamp Duty (SSD) and its subsequent revisions have affected sellers who sold within a year of purchase.

And going by Kim Eng's figures, the total number of developers' unsold units has risen by over 1,100 in just one week!

The Real Deals (19-01-2012)
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Mixed-use developments, anyone?

2012-01-20T10:29:00.001+08:00

While the wife and I agree that having a mall and/or integrated access to Bus Terminal/MRT Station right below your apartment is definitely an attraction, we cannot help but wonder if such mixed-use development concept is sustainable.

If more developers latch on to the idea of integrating a mall within their residential developments, the challenge is one of how to continually attract and retain the "right" retail tenant-mix to maintain the "attractiveness" of the projects. And not every new development can possibly be integrated with a Bus Terminal or MRT Station...

Source: The Straits Times

ABSD..? No problem!

2012-01-19T20:16:00.001+08:00

It looks like what The Hillier can do, Watertown can do better...

Source: The Straits Times
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The Real Deals (12-01-2012)

2012-01-18T11:48:00.000+08:00

The latest copy of The Real Deals talked about the "MRT Effect".

So irrespective of boom or bust, it is still a matter of location, location, location...!

The Real Deals (12-01-2012)

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More on the December private home sales figures...

2012-01-17T13:27:00.000+08:00

Notice how sales in 2008 dropped to 4,200+ units from the peak of 14,800+ units in 2007?

But it won't happen again, some said... The wife and I certainly hope they are right!

Big slide in private home sales in December 2011!

2012-01-16T14:08:00.003+08:00

Sales of new private homes in Singapore fell 62.9 per cent in December, based on latest data released on Monday.

The Urban Redevelopment Authority (URA) said a total of 632 units were sold last month excluding executive condominiums.

That's significantly lower than the 1,702 private homes sold in November.

Around 489 units were sold in the outlying areas or outside central region while 108 private homes were sold in city fringes.

Only 35 units were sold in the prime district.

The best selling projects were all located outside the central region: The Archipelago with 103 units sold, The Nautical with 84 units and The Palette with 61 units sold.

In December, developers placed 937 units of new homes for sale, compared to 1,967 units launched the previous month.

Source: Channel News Asia

The drop in December sales is hardly unexpected but the magnitude of the fall is somewhat a surprise. And given last month's dismal sales figure, it brought the total tally for 2011 to 16,025 - a tad shy of the 16,292 achieved in 2010 but still impressive nonetheless, considering the number of cooling measures that were introduced last year...

Click on below to read our previous post on the November 2011 sales figure:
http://www.sgproptalk.blogspot.com/2011/12/novembers-home-sales-up-223-month-on.html

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Project Sales status: Riversound Residence, The Nautical & The Hillier

2012-01-16T10:56:00.000+08:00

It's another weekend of "steady crowd, few buyers" again.

Riversound Residence
At Qianjian Realty's 590-unit Riversound Residence in Sengkang East Avenue, about 10 apartments were sold at an average price of $850psf, bringing total sales to more than 60 units since the project was launched the previous weekend.

Mr Zuo Haibin, teh firm's managing director, said the effect of the cooling measures had been keenly felt. Even though many people have expressed interest, few have made a firm committment.

"Our aim now is to sell about 60 to 70% of the 200 units that make up the project's first phase within three months. Had the measures not been implemented, we would probably have sold that many within a month," he said.

The Nautical
Hao Yuan Investment's 435-unit project in Sembawang Road, sold about 15 more units at an average price of $850psf over the weekend. Total sales thus came to about 150 units.

The Hillier
Far East Organization moved another 36 units at The Hillier, its 528-unit project in Upper Bukit Timah. The overall sales tally rose to 332 units, with the price averaging $1,205psf.

Source: The Straits Times

ABSD: More questions than answers...?

2012-01-15T13:47:00.005+08:00

Below appeared in Friday's copy of The Business Times.

Those who follow our blog will probably know our stand on ABSD.

So after reading Mr Ku's article (which posed some rather valid questions), the wife and I have a few questions of our own:

1. Does having "the most open economy for international trade and investment" necessarily mean investment inflow/outflow should not be moderated, even if the market warrants it? Or does it actually points to the fact that Singapore still has the least barriers to entry (ABSD notwithstanding) and one of the most transparent market around the world?

2. Would the "crash" in 2008-2009 be less severe if the Government had acted in 2007 to moderate foreign purchases of private residential properties, possibly with the implementation of ABSD?

3. And given the lessons learned from the spectacular price surge followed by an equally spectacular fall in 2007 - 2009, do we really want to wait for "shit to hit the fan" (again) before we start thinking about remedial measures? Prices especially for mass market homes have already surpassed their 2007 peaks, while buyers remains undeterred even after the ABSD is imposed (read: The Hillier?). And even if the % of foreign purchases in 2011 is nothing like that of 2007, it remains a fact that such purchases contribute to the escalating prices.

4. Have prices of industrial properties or offices been rising anywhere as spectacularly as private homes? To be honest, we have not been following the latest developments in these real estate segments.

5. How many of the so-called "high-skilled foreign families" actually buy a home for themselves to settle down in Singapore for the long term, rather than renting and moving on once their employment contracts end or once prospects in their home countries (or abroad) are better?

Oh well, maybe we just think too much... Have a great week ahead!
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Project Sales Update: The Hillier

2012-01-13T18:06:00.000+08:00

So whose afraid of the big bad ABSD...?!

Source: The Business Times

$408 million top bid for Clementi GLS plot

2012-01-13T10:41:00.002+08:00

A 99-year leasehold condominium site along Jalan Lempeng has attracted a top bid of $408 million in an eight-cornered bidding session among developers.

IOI's property unit, Multi Wealth (Singapore) Pte Ltd, was the top bidder for the residential land parcel, offering $554.41psf ppr, 13% higher than the next highest bid of $490.50 psf ppr by joint bidders UOL Venture Investments Pte Ltd, Singapore Land's SL Development Pte Ltd, and Kheng Leong unit Russville Pte Ltd.

The lowest bid of $260.1 million was put in by Soilbuild Group Holdings Ltd, translating to $353.44psf ppr.

Highlighting that the number of bids was within expectations, Lee Sze Teck, senior manager of research and consultancy at DWG, said: "The level of interest and price level indicate that developers think that demand in the mass market segment is still robust."

Mr Lee said the Clementi estate has not had a condominium project launch for many years and the site is likely to benefit from pent-up demand from residents residing in Clementi. He cited the recent DBSS project, Trivelis, as a "good example".

Credo Real Estate executive director Ong Teck Hui agreed, saying: "As expected, the more attractive GLS (government land sales) residential sites will draw more bidders with some being prepared to bid more optimistically than others.

"The subject site is a reasonable distance from Clementi MRT station, the bus interchange, and the amenities in Clementi Town Centre."

He added that there are relatively fewer GLS residential sites available in the west compared to other locations, especially the north-east and east where most of the tendered sites were located.

Consultants estimate the break-even point for the future development to be between $950 and $1,000psf and the selling price would likely be around $1,200 to $1,300psf.

With a total site area of 262,828.6sqft, the plot with a maximum plot ratio of 2.8 times can be built up to 735,920.1sqft and yield about 685 apartment units.

Source: The Business Times

Click on link below to read our previous post on this GLS tender.
http://www.sgproptalk.blogspot.com/2011/11/three-more-gls-sites-out-for-sale.html

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HUDC - How it all began

2012-01-12T12:30:00.003+08:00

Below is a short history on HUDC (article from The Straits Times today).

Everyone talks about HUDC but not many knew what it stands for. The wife and I certainly didn't... not even when the answer was staring right in our faces!

So we actually went to look it up and while searching for the answer, we came across this rather informative article on the history of public housing and thought we might as well share it with you.
http://infopedia.nl.sg/articles/SIP_1585_2009-10-26.html

Now to go get our eyes checked....

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Property Spotlight: Bouna Vista area

2012-01-11T15:14:00.010+08:00

The one-north area is coming alive with the opening of the One-North Circle Line MRT station and the recent completion of The Rochester, a mixed-use development by United Engineers with 366 apartments including SOHO-style lofts, a 271-room business hotel-cum-serviced suites called Park Avenue Rochester and a 10,000sqft mall called Rochester Mall. The 99-year leasehold development is also within walking distance of the Bouna Vista MRT station.

Retail and entertainment zone VistaXchange is located next door. Scheduled to open later this year, VistaXchange has a net lettable area of 164,906sqft and is developed by CapitaMalls Asia.

"There's a lot going on in the area and the newly completed projects such as The Rochester and One-North Residences are definitely bringing a buzz to the neighbourhood as residents move in," says Kelvin Tan, a property agent from One International Real Estate.

While the up-and-coming neighbourhood is seeing increased interest among local buyers, foreign buyers are shying away from making property purchases - largely in reaction to the government's property cooling measures introduced on Dec 8. The main deterrent is the additional 10% buyer's stamp duty imposed on foreigners buying residential property. "Foreign and PR investors have been showing very little interest, if any, in the one-north area since the new measures were implemented," says Alfie Isa, head of residential at Aptitude Real Estate Advisory.

Even though the residential market has turned quieter, there were still a number of transactions in the neighbourhood. At The Rochester, the most recent transaction was the sub-sale of a 1,032sqft two-bedroom unit on the 10th level, which changed hands for $1.8 million ($1,382psf). The seller had purchased it in August 2007 for $1.22 million ($936psf), thus making a 47.7% gain.

When The Rochester was launched in July 2007, units were sold at an average price of $1,300psf. Another new condominium in the vicinity, the 405-unit One North Residences was launched just a few months earlier in March 2007, and the average price then was $900psf. One-North Residences, developed jointly by UOL Group, Low Kheng Huat and Kheng Leong, was completed in 2009.

In December, there were three caveats lodged with URA Realis (as at Jan 4, 2012), and transaction prices ranged from $1,351 to $1,460psf. However, prices are still nowhere near the $1,680psf achieved for a 2,540sqft four-bedroom unit, which changed hands in a sub-sale at the previous peak in August 2007, nor the $1,625psf achieved when a 1,302sqft two-bedroom apartment was sold by the developer at the same time for more than $2.1 million.

The most recent transaction was the resale of a 980sqft two-bedroom unit for $1.4 million ($1,399psf). The seller purchased it in May 2007 for $920,000 ($939psf), making a 52% gain in less than five years. On the third level of the same block, a 1,033sqft two-bedroom unit changed hands for $1.3 million (1,258psf). The previous owner had bought it for $873,852 ($846psf) in September 2007, thus making a 48.8% gain.

Subsequent to the sale, a 1,109sqft two-bedroom unit on the eighth floor was transacted for $1.5 million ($1,375psf), the third time the unit has changed hands. The first owner bought it for $962,822 ($868psf) in April 2007, when the project was launched. He sold the unit two months later for $1.12 million ($1,008psf), a price appreciation of 16%.

Aptitude's Isa says the average asking price for One-North Residences is $1,400psf now, whereas it ranges from $1,350 to $1,500psf at The Rochester.

Prior to the government's cooling measures, many foreigners working at the Biopolis biomedical hub and at Fusionpolis, the infocommunication technology, media and physical sciences and engineering hub, at one-north had been interested in buying units at One-North Residences. "They were mainly looking to buy for their own [use], and therefore preferred new apartments," says Nicole Lim, senior team director at ERA Realty. "However, most of the units put up for sale at One-North Residences are already tenanted."

At One-North Residences, two-bedroom apartments fetch rental rates of about $5,000 a month. At The Rochester, two-bedroom apartments of a similar size fetch about $500 more, notes Lim. Generally, investors at both One-North Residences and The Rochester are looking at rental yields of 3%, she estimates. "While there's still interest, it's a little quieter now," she adds.

With new condos such as One-North Residences and The Rochester fetching $1,200 to $1,500psf, some investors are gravitating towards older condos in the area, where prices are still hovering around the $1,000psf range, notes Lim. Based on the lower quantum prices, the rental yields for such condo units in developments such as Normanton Park and Dover Parkview tend to range from 3.5% to 4%.

At the 686-unit, 99-year leasehold Dover Parkview, which was completed 15 years ago, the most recent transaction was for a 936sqft two-bedroom apartment that changed hands for $980,000 ($1,046psf). This is the third time the unit has changed hands. The first owner had bought it for $700,000 ($747psf) in October 1996 and sold it in June 2009 for $690,000 ($737psf). The most recent transaction of $1,046psf is one of the highest prices achieved in the condo so far. The highest average price achieved at Dover Parkview was last September, when a 936sqft unit changed hands for $1 million ($1,068psf).

Also at Dover Parkview, a 969sqft two-bedroom apartment changed hands for $904,500 ($934psf) in December. The previous owner had paid $632,000 ($652psf) for the unit in April 1996. One International's Tan, who brokered the sale of a unit at Dover Parkview recently, says most buyers do not mind the older condos in locations such as Dover Rise, as these units tend to be spacious and the absolute prices of about $1 million are also more palatable compared with those at newer condos. "The older condos represent value," he says. "Investors who want space but do not wish to overstretch their budgets are more inclined to buy units in older condos."

Another condo that is also favoured by investors is the 35-year-old Normanton Park. The 99-year leasehold condo is located off Ayer Rajah Expressway and near the Science Park. Based on the caveats lodged with URA Realis, the most recent transaction recorded was the sale of a 1,270sqft unit on the sixth level for $1.3 million ($992psf). The seller, who purchased it for $500,000 ($394psf) in September 1999, saw the price almost triple in just over a decade.

Source: THEEDGE SINGAPORE

The wife and I recalled visiting the showflats of The Rochester when it was launched for sale back in 2007. Our memories of the visit are kind of fuzzy now but we do recall that we are not real impressed by the unit layout and the fact that a 1,300sqft unit hardly looked the size. It was also the first project whereby we were introduced to the concept of "no car park for apartment owners" - one will have to secure seasonal parking at the mall, which is subject to availability.

And while searching for pictures of the respective developments, we chanced upon this beautifully taken photo of Normanton Park by Ray Alvin. Enjoy!

New Project Sales Status

2012-01-10T16:25:00.002+08:00

Many see, fewer buy...

Enbloc News: Royalville, Asia Garden & Jade Towers

2012-01-10T11:01:00.000+08:00

Royalville
Royalville, a residential site located on Bukit Timah Road, is back on the market, with an asking price in the range of $320 million to $370 million.

In the last tender exercise conducted in July last year, the asking price was between $370 million and $400 million.

Assuming a land cost of $320 million, this translates to $1,312psf ppr.

Inclusive of the additional 10% balcony space, this translates to $1,197psf ppr, including an estimated development charge of $1.16 million, says marketing agent Credo Real Estate.

Royalville has a land area of approximately 174,176sqft, with a gross plot ratio of 1.4. It has an allowable building height of up to five storeys.

The tender closes at 2.30pm on Feb 15.

Asia Gardens
Asia Gardens, an 84-unit condominium development located on Everton Road, has an indicative pricing of between $302.6 million and $307.7 million. This translates to about $1,500 to $1,525psf ppr, based on GFA of 201,765sqft.

The plot has a site area of about 72,059sqft and is zoned "residential" with an allowable plot ratio of 2.8 under the 2008 Master Plan.

The tender for Asia Garden will close on Feb 29.

Jade Towers
Jade Towers, which is located along Lew Lian Vale, has an indicative guide price of $108.8 million to $110.8 million, which translates to $826 to $841psf ppr.

There are 72 apartments spread across two 10-storey towers. The site has an area of 92,412sqft with a plot ratio of 1.4 and can be reconfigured to accommodate GFA of 131,702sqft.

"With a near rectangular configuration, the site can be redeveloped into 101 new condominiums averaging 1,200sqft each," said marketing agent Savills Singapore.

The tender for Jade Towers will close at 3pm on Feb 16.

Source: The Business Times/The Straits Times

Our "Recommendations"

2012-01-09T18:51:00.005+08:00

1. Renovating your apartment?
The wife and I have re-posted some of our "experiences" on home renovations in our Forum page.
Hope you find them useful and feel free to contribute and share some of your own!

2. Enjoy Food & Travel?
Here's a brand new blog that you should check out!

http://willtravelforfoodandlove.wordpress.com

When then, Bradell View..?

2012-01-09T16:31:00.001+08:00

So...only Bradell View remains "unprivatised".

The wife and I had posted an article back in August 2011 on the ~~delimma~~ (dilemma) that Bradell View faces with regard to privatisation - the main obstacle being that the estate is sitting on 2 separate land parcels with different lease expiry dates.

Click below to read our previous post on Bradell View:
http://www.sgproptalk.blogspot.com/2011/08/bradell-view-enbloc-potential-they-say.html

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Luxury Home Glut..?

2012-01-07T15:06:00.006+08:00

Below is an article in The Straits Times today.

To be fair, three of the four projects that the ST highlighted have not released (officially at least) the bulk of their units yet (as of end-November 2011). And given the current market sentiments, the wife and I reckon that the respective developers will not be putting more units (officially at least) into the market anytime soon.
Sales Status: d'Leedon/Twin Towers/Hilltops/TST
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SOR is soaring..!

2012-01-06T14:27:00.007+08:00

A KEY interest rate that determines how much home owners pay on their mortgages is continuing to rise and is likely to increase further.

Borrowers could be facing hundreds of dollar a month in extra repayments in the wake of the steadily increasing swap offer rate (SOR) as the benchmark rate is called.

It was at 0.53428% yesterday - down a touch from the 23-month high of 0.56185 it hit on Dec 15 but still well above the rare negative level of -0.6987% it dived to in August.

The SOR has also increased more than the other key interest rate linked to mortgages - the Sibor (Singapore Interbank Offered Rate).

That was at 0.3985 yesterday, up 5 basis points since last August.

The weak Singdollar in recent months and rising borrowing costs amid the global credit squeeze are behind the SOR's rise of 1.23 percentage points since that low point.

Whatever the reasons, home owners with SOR-linked loans are facing repayments of about 50 basis points higher once the movement from the negative level is taken into account.

A borrower who took out a $1 million loan over 20 years back in August is now paying about $250 more a month in the first year on the initial repayment of $4,688.72, assuming no other charges to the conditions.

As the SOR has been increasing steadily since August, the monthly repayments would also have risen in tandem. The extra interest paid works out to around $5,000 a year.

In August, when the SOR went into negative territory, banks had to invoke special clauses to floor SOR rates at zero. Otherwise, they would have been in the strange position of having to pay borrowers for taking out a loan.

Only ANZ Bank and the Bank Of China offer SOR-pegged loans now.

The SOR is fixed daily by the Association of Banks in Singapore using a formula that takes into account the current and expected exchange rates of the US dollar against the Singdollar and the local interbank lending rates for the greenback.

OCBC Bank economist Selena Ling expects the SOR to keep rising, hitting 0.55% this year as the economic conditions will probably not change in the foreseeable future.

Mr Rohit Arora, Barclays Capital's emerging markets fixed-income strategist, thinks the SOR could even reach 0.7% by the end of the year if the euro zone crisis worsens.

Currency experts say that the Singdollar is likely to stay weak against the greenback for the first half of the year - just the sort of conditions that will keep the SOR trending up.

The US dollar is heading north because investors around the world are bailing out of almost every other assets and seeking safety in the old standby of the greenback.

UOB economists expect the Singdollar to fall to $1.33 against the greenback this quarter, with more declines in store in light of the global economic woes.

UOB economist Chow Penn Nee said: "We think the unresolved crisis in the euro zone will continue to weigh on the Singdollar and will be the key factor in guiding (its) direction."

"So far, European Central Bank measures, such as providing liquidity for banks to participate in European sovereign debt, are only stop-gap measures, which do not solve the debt problems."

But home owners who have a loan pegged to the SOR should not rush to refinance as they may incur additional administrative costs.

Mr Vinod Nair, chief executive of Smartloans.sg, which offers home loan comparisons, said: "My opinion is that if they are on SOR, they should stick to it because the SOR is still at an acceptable rate."

Mr Nair advised that only when the difference between the SOR (now at 0.53428%) and the Sibor (now at 0.3958%) exceeds 0.5 percentage points should homebuyers look for alternatives.

Source: The Straits Times

Back in August 2010 when SOR was hovering around negative territory, the wife and I were cautioning anyone who bothered to listen that the low interest rates are not sustainable. We also raised concerns about possible rate hikes in the foreseeable future . But some of our friends (esp. those who had taken a second SOR-based home loan for their investment property) had waved off our concerns. How high can the rates possibly go given the low base-level, they said. It'll be silly not to take full advantage of the "cheap money" that the banks are offering, they added.

Now that SOR has risen by a whopping 1.23% in just 4 months, we wonder how much longer the monies offered by our banks will remain... "cheap".

And speaking of banks, we also wonder if any of those who had discontinued their SOR-based packages back in August 2010 (citing reasons like SOR-based loans are unsuitable for property buyers who buy residential property for owner occupation, in view of their inherent volatility and the long-term nature of mortgage loans) will do an about-turn now that SOR is back in the positive and rising...
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Private home prices rise despite cooling measures...

2012-01-06T12:34:00.000+08:00

Private home prices and rents in Singapore rose in 2011 from the previous year despite cooling measures, said property consulting firm DTZ.

The measures included imposing seller's stamp duty and a reduction in loan-to-value limit.

In its report released on Thursday, DTZ said resale prices of leasehold condominiums in suburban areas increased 8.2% on-year.

This makes it the fastest growing segment among non-landed housing according to a basket of completed condominiums tracked by DTZ.

Fourth quarter flash estimates also showed HDB resale prices went up last year by 10.7%.

But prices of luxury condominiums only saw a 1.0% on-year growth in 2011.

DTZ said the global economic uncertainties dampened demand for luxury condominiums, dragging prices down by 0.7% in the fourth quarter.

"As a larger proportion of purchases in the luxury segment are by foreigners who are now subject to the Additional Buyer's Stamp Duty (ABSD) of 10%, this segment is expected to see a sharper fall in prices than other segments in 2012," said Ms Chua Chor Hoon, head of Asia Pacific Research, DTZ.

Home prices in the prime freehold segment also took a hit, growing only 4.6% on-year, compared to 8.3% in 2010.

This contrasted with a sharp 12.8% on-year increase in resale prices of freehold landed homes in the prime districts. Leasehold landed homes in suburban areas also rose 12.4% last year.

Rents, meanwhile, were also higher in 2011, led by condominium rents which moved up by 8.9% due to demand from foreign professionals with higher housing allowances.

However, rents for luxury condominiums only grew 1.3% on-year.

From January to November, private home sales of 15,393 units in 2011 already outpaced the 15,288 units sold in the same period in 2010.

Volume is expected to fall in December and carry through in 2012 following the property cooling measures.

"Historically, significant price falls have been triggered by external events that affect the economy rather than cooling measures. The projected economic slowdown in 2012 will thus have a more significant impact on buyer sentiment and consequently on demand and prices," said DTZ's Ms Chua.

Overall, DTZ expects a take-up rate of 16,000 for 2012, slightly lower than the 16,292 units sold in 2010.

Source: Channel News Asia

New Project Info: Riversound Residence

2012-01-05T17:21:00.005+08:00

Qianjian Group will be launching their 99-year leasehold condominium Riversound Residence on Saturday.

Situated at Sengkang East Avenue, the 590-unit development comprises six 18-storey blocks. Unit sizes range from 452sqft for a one-bedroom unit; 1,184sqft for a three-bedroom dual-key unit; and between 2,508 and 2,734sqft for a four-bedroom penthouse.

Units are priced at an average of about $850psf, with early-bird buyers entitled to attractive discounts.

Source: The Business Times

Here are more info about Riversound Residence for those who are interested:

PROJECT INFO
Developer: Qingjian Realty (Sengkang) Pte Ltd
Tenure: 99-year Leasehold commencing 26 August 2011
Address: Buangkok Drive / Sengkang East Drive
Site Area: 210,427.59 sqft
Expected TOP Date: 31 December 2015
Expected Date of Legal Completion: 31 December 2018
Type of Development: 6 Blocks of 18-Storey
Total No. of Units: 590
Total No. of Carpark Lots: 598 (592 + 6 Handicapped Lots)

UNIT MIX
• 1-Bedroom (32 units):   452sqft
• 2-Bedroom (64 units):   753sqft
• 3-Bedroom Compact (80 units):   904/ 947sqft
• 3-Bedroom Dual-Key (16 units):   1,184sqft
• 3-Bedroom Utility (122 units):   1,066sqft
• 4-Bedroom Compact (142 units):   1,163/ 1,259sqft
• 4-Bedroom Dual-Key (14 units):   1,421sqft
• 4-Bedroom Utility (92 units):   1,292/ 1,345/ 1,367sqft
• 4-Bedroom Penthouse (28 units):   1,927 – 2,734sqft

Rich as I am, it's still unfair to penalize me for wanting to be richer!

2012-01-05T14:56:00.024+08:00

The wife and I are definitely NOT referring to ourselves...

The article below appeared in The Straits Times Forum page today.

Everyone is entitled to their own opinions (including Mr Tan) so here's our two cents: To say that every (rich) Singapore citizen should be entitled to own as many private residential properties as they desire without incurring additional taxes is akin to saying that owners of apartments in private condos should be entitled to as many free parking spaces as the number of cars they own. We have to acknowledge (even if we do not like it) that the later is impossible, especially with new condos these days. So why is it so difficult to accept the former?

Objectively speaking (and no, we do not work for the Government), the additional buyer's stamp duty (ABSD) is hardly putting citizens on equal footing with PRs or foreigners - Singapore citizens are allowed to purchase 2 properties before the ABSD kicks in, whereas PRs only get 1 and ABSD applies to the very first property that a foreigner buys.

So unless a native Singaporean has 3 wives that cannot live harmoniously under one roof (a situation that should warrant special exemption from ABSD, after he is charged with bigamy), we reckon that two private properties should more than satisfy his aspiration of home ownership with an extra for investment. Should he decides to plough more money into the market by investing in more than 2 properties, well... the Government has no obligation to continue supporting those profit aspirations, especially given the sky-rocketing home prices that many (not so rich) Singaporean are struggling to keep up with.

Finally, even the slightest hint that ABSD penalises one's "patriotism" to invest in local property is probably far-fetched. If the state of our property market is anything like those of the US or Ireland, we wonder how many of these "patriots" will continue to invest their monies here rather than abroad...

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SG PropConsult is open for business!

2012-01-04T19:07:00.000+08:00

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The SG PropConsult page is now "live" and you will find a list of services (which we hope to expand in due course) that SG PropConsult can provide.

We must emphasize (again) that SG PropConsult is very much an information provider. Any opinions/recommendations made in our reviews are not meant to be professional advice and should not be construed as such. But we will always strive to conduct our research with the same diligence and objectivity that is synonymous with our blog.

On our fees: we believed this is pegged at a level which makes sense for us to take on a project and yet not overly prohibitive to our (potential) clients. This is especially considering that buying a private home these days is easily a million-dollar commitment.

Finally, the wife and I are very excited about SG PropConsult and we look forward to be of service to you soon. So come talk to us!

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Home prices are slated to fall this year. Question is, by how much?

2012-01-04T16:47:00.003+08:00

Prices of private homes are poised to fall this year. This was foreshadowed in the official flash estimates for the fourth quarter of last year which showed a slowdown in growth.

Urban Redevelopment Authority's private residential property price index rose a mere 0.2% quarter-on-quarter in Q4 2011, its most anaemic growth in 10 quarters since the index bottomed out in Q2 2009.

From the 15.8% q-o-q increase in Q3 2009, the index has now moderated for nine consecutive quarters, according to CBRE's analysis. The 0.2% q-o-q hike in Q4 was lower than the 1.3% q-o-q rise for Q3 last year. For the whole of 2011, the index rose 5.9% - a marked slowdown from the 17.6% jump in 2010.

Most market watchers say it is a given that prices will go down this year, amid the weaker economic outlook and poorer sentiment, especially after the introduction of the additional buyer's stamp duty (ABSD) last month.

"Developers know they need to cut prices but the difficulty is in gauging how much. If they don't cut enough, buyers are not going to act. But if they give too much, there's always a fear that buyers will expect a bit more. What you want to do is to give enough for the fence sitters to come back into the market. Despite the weaker economic outlook, there's still a lot of cash and liquidity in the market," says Knight Frank chairman Tan Tiong Cheng.

DTZ's head of Asia Pacific research Chua Chor Hoon predicts a 10 - 15% drop in URA's overall private home price index in 2012 citing the ABSD which took effect on Dec 8 and the economic slowdown. The luxury housing segment, where there are more foreign buyers, is expected to take the biggest hit given the top ABSD rate of 10% levied on their residential property purchases.

CBRE executive director Li Hiaw Ho expects overall demand for new private homes to be trimmed by 15 - 20% this year.

"Price of luxury/prime condos may fall by 10 - 15% in 2012, and the mass-market condos, by 5 - 10%," he added.

URA's flash estimates show that the price index for non-landed private homes in Outside Central Region (OCR) - where mass-market condo projects are located - was the star performer, though it has also dimmed somewhat. It rose 0.6% q-o-q in Q4 last year, a slower rise than the 2.1% increase in Q3 2011. The full-year 2011 increase of 7.7% was also slower than the 15% climb in 2010.

Prices of non-landed private homes in OCR increased the fastest as demand was supported by HDB upgraders as well as investors, notes DTZ's Ms Chua.

Credo Real Estate executive director Ong Teck Hui notes: "The strong run in OCR market has led to their current (Q4 2011) prices being 28.3% above their pre-financial crisis peak in 2008, while prices in Core Central Region (CCR) and Rest of Central Region (RCR) are only 6% and 15.9% higher than their respective 2008 peaks."

The price index for non-landed homes in CCR - which includes the traditional prime districts, financial district and Sentosa Cove - appreciated 0.5% q-o-q in Q4, following a 0.7% gain in Q3. The full-year 2011 increase was 4%, significantly lower than the 14.2% rise in 2010. The index for RCR for Q4 was unchanged from the preceding quarter, taking the full-year appreciation to 4.4%, after rising 17.6% in 2010.

Source: The Business Times

Most market analysts have said that prices for mass-market private homes will only fall by between 5 to 10% this year. However, the wife and I will go on a limb here by saying that we think mass-market home prices will drop by more than 10%. This is because:

1. More mass-market projects are expected to be launched this year, adding to the rather substantial inventory of launched but unsold units in the market.

2. The furious pace in which the Government is releasing land parcels through its Government Land Sales (GLS) scheme - most of these are slated for mass-market homes or ECs.

3. The new additional buyer's stamp duty (ABSD) rule stipulating that all land parcels bought by developers have to be built and fully sold within 5 years - this is likely to put more downward pressure on home prices.

4. The ramping of supply of HDB flats (especially BTO) and easing of HDB flat purchase criteria (income ceiling increase, higher allocation for second-time buyers etc) may mean that some demand for mass-market private homes will be siphoned off to HDB flats.

Only time will tell if our observations are correct or just a load of bull...

But what do you think?

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New project sales update: 225 units sold at The Hillier!

2012-01-03T15:18:00.003+08:00

Far East Organization's project The Hillier in Upper Bukit Timah has chalked up healthy sales, despite the recent property cooling measures.

Close to half of the 528 units at the Soho-style project have been sold so far, the property developer said yesterday.

One key factor seems to be the developer's offer to give a stamp duty reimbursement of 3%. Another sweetener is furniture vouchers, with the amount varying based on the apartment size.

Far East is offering a "stamp duty reimbursement" of 3% to all buyers, a move industry players say is equivalent to a 3% discount.

Far East yesterday said 93% of the buyers were Singaporeans and PRs, adding that more than half of the buyers are existing residents in the Hillview neighbourhood.

The developer has been collecting cheques since the project's preview phase started on Dec 16 and buyers have snapped up 225 units averaging $1,175psf. So far, 333 units have been launched.

Prices start at $668,000 for a 549sqft one-bedroom studio unit, which works out to $1,217psf.

The concept is similar to Far East's other mixed-use projects such as The Tennery at Junction 10 and The Greenwich in Seletar, where residential components are integrated with retail malls.

Some market observers have labelled the offer to absorb stamp duty and the furniture vouchers as marketing tactics and have called on developers to lower their price instead.

But buyers like Dr Ng said he felt it made no difference to him. "Giving vouchers is like lowering the price. Ultimately, my concern as a buyer is the net amount I will have to pay and whether I feel it's value for money," he said.

Some market observers add that developers may wait for a while before cutting prices.

Developers will be more price sensitive in the current market, said PropNex chief executive Mohamed Ismail, where many buyers are aware prices could fall further.

"Hence lowering prices on its own may not always work as some buyers will feel it's not low enough... Pairing incentives like stamp duty absorption with lower prices may have greater appeal."

The Hillier, a 99-year leasehold project, contains a mixture of one- and two-bedroom apartment in two blocks: a 22-storey New-York themed tower and a 28-storey tower modelled after the modern architecture seen in London.

Both towers sit above hillV2, a retail and lifestyle shopping mall slated for completion by next year. The Hillier will be ready by 2016.

Source: The Straits Times

Despite calls from market observers for a direct lowering of prices, the wife and I felt that this will only happen as a last resort. There is compelling reason why developers like Far East will prefer to give out stamp duty reimbursements and furniture vouchers: By doing so, the average price for projects such at The Hillier can still achieve average price of $1,175psf. A direct discount will knock at least 4% (i.e. 3% stamp duty + 1% furniture vouchers) off the selling price, which will reduce the average selling price to around $1,128psf. So by employing what some market observers termed as "marketing tactics", developers may continue to prop up the (perceived) selling price. And as long as there are still buyers like Dr Ng, there is little incentive for developers to lower their prices directly.

If the wife and I are considering a 2-bedder at The Hillier because of hillV2 and its supposed proximity to the upcoming Hillview MRT station, we will be sure to check out neighbouring projects such as Glendale Park and Hillview Heights as well. Granted that these are older projects but both are freehold and currently transacting at about $1,000psf. And our gut feel suggests that the upside potential of these developments may not pale comparison to The Hillier...

The Real Deals (22-12-2011)

2012-01-02T21:01:00.002+08:00

The latest issue of "The Real Deals" featured the up and coming estate of Punggol.

According to an entry in Wikipedia, Punggol, also spelt as Ponggol, means "hurling sticks at the branches of fruit trees to bring them down to the ground" in Malay. It could also refer to a place where fruits and forest produce are offered wholesale and carried away. These possible names indicate that Punggol was a fruit growing district. The place is said to take its name from the river Sungei Ponggol.

Punggol used to be called a "ghost town" due to the large number of built but unoccupied HDB flats. It was unpopular with potential home buyers then, given its distance from the city and lack of malls and recreational facilities. But what a difference a couple of years make!

The Real Deals (22-12-2011)

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A new year ahead... and a new page for SG PropTalk!

2011-12-31T23:07:00.009+08:00

As we bid farewell to 2011 and welcome a brand 2012 in an hour or so, the wife and I would like to wish you a terrific year ahead. The private home market is shaping to be equally exciting next year (albeit for slightly different reasons), and we look forward to continue sharing our thoughts with you via SG Proptalk.

And with the new year comes new aspirations: During the past month, the wife and I have been toying with the idea of setting up a property consultation arm (of sorts) to complement SG Proptalk. This stamped from several enquiries we had received from readers on whether we do provide such service.

The consultation arm is currently still work in progress, but we have at least decided on its name - SG PropConsult.

We will be adding an additional page on our blog dedicated to SG PropConsult, which will provide information about the services that we can provide.

Our main aim with SG PropConsult is to provide potential home buyers with objective information/opinions/recommendations on both new and existing developments in Singapore to enable them to make better-informed decisions. So whether it relates to a report on specific development in question, or a recommendation report on developments within a specific area/district that best meet your purchasing criteria (pre-determined), we will be open to discussion to undertake the project (for a nominal fee, which will help reimburse us for our time, effort and petrol cost). We may also be able to connect you with property marketers that we have gotten to know (and trust) during the course of writing our blog, who may specialize in marketing developments in the location that you are interested in.

What we deemed unique about SG PropConsult is that you (the home buyers/investors) are our "clients", as opposed to a typical property-marketing arrangement whereby the agent's obligations are mainly towards the property seller.

Given the limited resources that the wife and I are operating with, we cannot realistically expect to take on every project that may come our way. Having said that, we are not even sure if there is actual demand for services from two "non-professional" property watchers. But we reckon that if we don't try, we will never know!

More details will be available on our SG PropConsult page soon. Meantime, please give us your thoughts about SG PropConsult.

Happy New Year everyone!

With best wishes,
The Folks @PropTalk

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Do REDAS and PUB share the same marcom team?

2011-12-31T21:44:00.002+08:00

The articles below were featured in The Straits Times Forum page today.

Some may find the recent comments from REDAS somwhat difficult to stomach. But seriously, would you expect them to do any different (i.e. vigorously defend the interests of its members)?

The comments were probably made under the same rationale as those from our water agency, which initially insisted that the latest "water incident" at Liat Towers/Lucky Plaza was not flooding but rather, "ponding"...

Reflections at Keppel Bay: Villa unit achieved $3,256psf!

2011-12-30T15:02:00.001+08:00

A four-bedroom apartment on the fifth level of a six-level villa block at Reflections at Keppel Bay recently fetched $11 million, according to caveats lodged and downloaded from URA Realis as at Dec 14. The standout transaction of the 3,380sqft unit achieved a price of $3,256psf, considered the highest average price at Reflections so far. The price was achieved as the unit is said to be "one of the best facing units with 180-degree views of the sea", says Eunice Chen, a property agent with Global Property Strategic Alliance, who brokered the deal jointly with her colleague PK Soh. The buyer is said to be a Singaporean, who is buying for his own use.

The record price deal for the unit was done before the government introduced the additional buyer's stamp duty (ABSD) on top of the existing 3% on Dec 8. When the government introduced it, property consultants anticipated the worst for the high-end market, as foreign buyers account for a third to half of purchases in this segment. "Many were caught off-guard and there were concerns about whether the stamp-duty hike would discourage property investors," says Benson Koh, senior group district partner at SLP Real Estate Empire. Like other property consultants, however, he believes it is too early to tell what the impact will be, as the rule came into effect only recently.

SLP's Koh brokered the sale of a two-bedroom unit at Reflections for $1,888psf recently.

The most recent sub-sale at Reflections was for a 1,012sqft two-bedroom unit on the seventh floor that changed hands for $1.57 million ($1,550psf). The unit was purchased at $1.41 million ($1,393psf) in August 2007, when the project was launched.

With six soaring glass towers of 24 to 41 storeys and 11 villa apartment blocks of six to eight floors, Reflections dominates the skyline in the HarbourFront, Keppel Bay and Telok Blangah area.

The development spans 750m of shoreline and, depending on the orientation of the units, some have views of the bay, while others of the golf course, parks and also Mount Faber. The most premium units are those with direct sea views and tend to be in the villa blocks. The 99-year leasehold project developed by Keppel Land and designed by renowned architect Daniel Libeskind obtained its Temporary Occupation Permit (TOP) about a fortnight ago.

So far, 835 of the 950 units launched at Reflections have been sold, according to Keppel Land. In the latest phase, only 115 units are available for sale, which include the 13,000sqft triplex super penthouse. The asking price of the super penthouse is said to be $45 million to $60 million.

The average transacted price today is said to be $2,168psf, compared with $1,950psf when the project was launched four years ago, according to Keppel Land.

About 60% of the buyers are said to be Singaporeans and permanent residents, as well as local corporate buyers, with foreign buyers making up the rest.

Reflections has seen a wave of transactions in the months leading to its completion and more recently, since its completion. In the week of Nov 23 to 29, a three-bedroom, 1,539sqft unit on the 10th floor of one of the towers was sold by the developer for $2.6 million ($1,690psf) on Nov 22. In the secondary market, sub-sale prices achieved in October and November ranged from $1,513 to $2,668psf, according to URA Realis.

Source: THEEDGE SINGAPORE

For those who are interested, below are our previous posts on Reflections at Keppel Bay:
http://sgproptalk.blogspot.com/2011/09/project-spotlight-reflections-at-keppel.html
http://sgproptalk.blogspot.com/2011/08/why-buy-1-unit-when-you-get-purchase.html
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Will the US$ Sibor rates affect home loan rates?

2011-12-29T20:43:00.002+08:00

As reported in The Business Times today, the US-Dollar Sibor rates are at 52-week high.

Two questions come to mind:

1. Does this mean that the local Sibor-pegged loan rates will increase in tandem with the US$ Sibor rates increase?

2. Will we soon see a return of SOR-pegged housing loans, since we understand that the Singapore-US$ swap rates are set to increase?

Maybe some of you financial/banking folks out there can shed some light on the matter...

Nov SRPI up but "shoebox" prices continue to dip

2011-12-29T19:51:00.001+08:00

Source: The Business Times

So the message from industry experts seem to be: Owners of "shoebox" do not have to worry... yet.

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Renewed interests in pre-war flats at Tiong Bahru...

2011-12-28T22:07:00.003+08:00

A wave of transformation is sweeping through the once-sleepy Tiong Bahru estate.

Thanks to a new breed of indie retail shops and coffee houses, the 20 blocks of pre-war conserved flats have attracted renewed interest from home buyers and this has pushed up home prices in the area by about 50% over the last two years.

Located near Tiong Bahru Market and Food Centre, the area bounded by Seng Poh, Outram and Tiong Poh Roads was once an old estate.

The 20 blocks of pre-war flats were built in the 1930s and awarded conservation status in 2003.

In the past year, the estate has been gaining attention for the rising number of independent shops and coffee houses that has sunk roots there.

One of the shops specialising in Bhutanese art and home decor opened for business in March this year.

Tan Tiong Pin, owner of Bhutan Shop, said: "This was still considered an old estate two years ago. Many elderly folks lived here. But with new condominiums built, many expatriates and yuppies now live here."

A couple who moved into one of the Tiong Bahru pre-war apartments nine years ago fell in love with the estate.

Three months ago, they opened a shop selling curios and vintage items, which are attracting tourists and residents from other estates.

Terence Yeung, owner of Flea & Trees, said: "There's a charm in this space. When people come to this area, they find it's like an oasis in a big city, right next to the heart of the city and that's very charming."

With new life breathed into Tiong Bahru, prices of the pre-war flats have also gone up.

Property agents say conserved flats in Singapore are rare.

With the attractive amenities and shops in Tiong Bahru, agents say prices for the pre-war flats have jumped.
A 1,000sqft pre-war flat, for example, is now going for close to a million Singapore dollars.

Source: Channel News Asia

Would you pay a million bucks for a 1,000sqft "walk-up" with about 55 years left on its 99-year lease?

Click below to access the URA web-page on the Tiong Bahru Conservation Area:
http://www.ura.gov.sg/conservation/tbahru.htm

Click below to access an informative blog-site that is dedicated to the Tiong Bahru Estate:
http://tiongbahruestate.blogspot.com/
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More EC, you see...

2011-12-27T21:52:00.003+08:00

More land will be released for the development of executive condominiums (ECs) in 2012.

The Ministry of National Development (MND) says that it is prepared to supply land sites for 5,000 EC units next year.

This is part of the government's move to help more higher income Singaporeans own private housing by expanding the EC market.

The government has taken an earlier step by raising the monthly income ceiling for the purchases of new ECs from $10,000 to $12,000 in August this year.

Minister of State for National Development and Manpower Tan Chuan-Jin said that the increased income ceiling has benefited around 220 households who have booked their ECs since the widening of the scheme.

Mr Tan was speaking at the Real Estate Developers' Association of Singapore (REDAS) anniversary dinner.

The EC scheme was introduced in 1995 to provide a more affordable private housing option for Singaporeans.

Since the introduction of the scheme, 14,600 EC units have been launched by developers and 3,000 units are coming on-stream.

Still, Mr Tan pointed out that the majority of Singaporeans will continue to live in public housing.

He reiterated that the government remains committed to help first-time owners and newlyweds purchase their own homes.

But Mr Tan said that from next year, the government will begin to pay more attention to helping HDB second-timers.

On the recent move to introduce additional buyers' stamp duty, Mr Tan said that it is "natural and not unexpected" for the announcement to attract much public discussion with diverse views.

He added that the volatile equity markets and uncertainty in Europe may cause more foreign funds to be attracted to Singapore's property market.

The latest move is targeted to moderate such investment demand to avoid the need for a major correction in the future.

Mr Tan said that developers may not welcome such a move but he seeks their understanding for the good of the industry.

Source: Channel News Asia

Accelerated construction of public housing, increased number of Government Land Sales (GLS) sites and now more land release for development of ECs... The wife and I really hope that there will be enough demand over the next 3 - 5 years for all these new supply PLUS the substantial inventory of unsold homes that are already in the market.
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Enbloc sales pass $3 million in 2011, powered by small sites!

2011-12-27T12:19:00.000+08:00

According to The Straits Times today, the value of collective sales this year has surged past the $3 billion mark, powered to a great extent by the sale of smaller sites.

Data from Credo Real estate showed that 49 sites were sold this year for a total of $3.04 billion - well ahead of the 36 sites sold for $1.77 billion last year.

Most of the sites went for prices below $100 million, with only 12 sold above the $100 million threshold. But these 12 sites had a combined value of $1.71 billion, making up 56% of total sales.

Given the expected economic slowdown heading into next year and the new "5-year rule" imposed on all redeveloped (and GLS) sites by the Government, the wife and I reckon that the 2012 collective sale scene will pale in comparison to 2011 (or maybe we are stating the obvious?). And all them en-bloc aspirants of larger sites (say, $500 million and above) should probably not hold their breath waiting...

Yuletide Greetings...

2011-12-25T00:50:00.000+08:00

Happy Holidays Everyone!

2011 private property demand by districts: What's hot and not?

2011-12-24T23:59:00.002+08:00

What's hot

Bedok
The District 16 town of Bedok is the most popular pick this year, said Mr Nicholas Mak, executive director of research and consultancy at SLP International.

So far this year, Bedok has recorded 3,848 caveats for both new and resale transactions. More than 100 units were sold at the 577-unit Archipelago project during its preview weekend earlier this month, at an average of $1,000psf.

Bedok Residences stirred up controversy over its queuing system last month, ultimately selling more than 470 units out of the project's 583 homes at a $1,359psf median price.

"Bedok benefits from a big pool of people who live in the east. This means the pool of potential buyers and sellers is also bigger than in other areas. Most of these people also tend to be reluctant to move outside the east and tend to seek out homes within the eastern neighbourhoods," said Mr Mak.

Punggol
The rapid redevelopment of the Punggol area has boosted the popularity of this fledgling waterfront new town.

According to SLP International, this has helped boost the ranking of District 19, which includes Hougang, Punggol and Sengkang, to the No. 1 spot for new home sales, with a total of 3,102 deals so far this year.

The neighbourhood recently entered a new stage of development, with more than 5,000 new private homes slated for completion over the next few years. Many buyers will be drawn by an attractive new waterway and plans for a new mall near the MRT station.

Still, some buyers have tended to dismiss the neighbourhood, saying it does not measure up to the amenities and infrastructure boasted by mature towns like Toa Payoh and Tampines.

But others have been more open to the area's development potential, encouraged by the Government's plam to establish Punggol as a waterfront town. In the first nine months of this year, close to 1,900 uncompleted units were launched for sale in District 19.

Projects such as A Treasure Trove and The Luxurie proved a hit, with each development achieving take-up rates of more than 70%.

These projects have helped to boost overall sales activity in Punggol by 9% year-on-year, and lifted new home sales in the area by 40%, according to date compiled by Jones Lang LaSalle (JLL).

Yishun and Sembawang
Yishun and Sembawang have also done well, riding on healthy demand for private homes with innovative designs, said Mr Ong Kah Seng, director of property research firm R'ST Research.

So far this year, 1,184 new homes have been sold in District 27, which encompasses the Admiralty, Sembawang and Yishun areas. Several notable projects such as Miltonia Residences and Canberra Residences have contributed to the boost in new home sales.

Still, Mr Ong added that such far-flung areas face some hurdles as they are not so well-located and do not have significant development potential.

This means some buyers may sideline these areas in favour of neighbourhoods like Jurong East and Paya Lebar which have better fundamentals like strategic location and long-term development goals.

District 15
Coming in third in new homes sales ranking is District 15, with nearly 1,149 deals closed this year. Made up of neighbourhoods such as Katong, Joo Chiat and Marine Parade, this location has once again proved to be popular among home buyers.

The area has also done well in overall home sales. According to data compiled by Savills, District 15 chalked up 11% of the total caveats lodged this year, second to the 12% garnered by District 19.

Ms Chia Siew Chuin, Colliers International's head of research, said the location's popularity stems from its proximity to the city, airport and recreational and leisure facilities such as East Coast Park.

"(Districts 15 and 14) also host a wide array of supporting amenities... as well as a large selection of food and beverage haunts," said Ms Chia.

What's not

District 9 and 11
Despite being among Singapore's most prestigious postal codes, Districts 9 and 11 have achieved less than stellar sales this year.

The two areas include high-end luxury homes in the Chancery, Bukit Timah, Orchard, Oxley and Cairnhill neighbourhoods.

It has been a lacklustre year for the high-end and luxury home segment. The poor transaction volumes in these two particular districts have dragged them to the bottom five postal districts for this year, said Dr Chua Yang Liang, head of research at JLL. Year-on-year sales in District 11 slumped 53% while those in District 9 tumbled 47%.

Dr Chua said limited new supply in the prime market is to blame: "People looked for better value options with a smaller overall quantum as the economy stuttered and buyers became more budget conscious."

"(This benefited) the mass market as the more affordable properties on offer drew in the buyers," he said, adding that foreign buyers have also been switching their location preference.

Promising

Marymount and Thomson
Interest in this District 20 neighbourhood has been building throughout the year, partly due to the opening of the remaining sections of the MRT network's Circle Line, which now links the area to Holland Village and Bouna Vista.

"(The neighbourhood) is one of the few low-rise estates available which is centrally-located, and perhaps still considered affordable for the average to above-average income buyer," said Mr Ong.

A 603sqft unit at Tresalveo, a condominium located opposite Marymount MRT station, sold last month for $748,000 or $1,241psf.

Mr Ong added that the smaller but more strategically located neighbourhood gives off an exclusive, quaint vibe, which could differentiate the area from the rest of the housing supply that will come on-stream in the next few months.

Set to underperform

Districts 9, 10, 11
Prime areas popular among foreign buyers are likely to be the worse performers next year, said JLL's Dr Chua. He explained that these areas will experience a drop in transaction volumes involving foreign buyers as they feel the pinch from the new 10% stamp duty.

Other analysts said the market for high-end properties had been slow even before the measures and this trend is set to continue, with prices and sale volumes remaining in the doldrums.

The changing profile of foreign buyers is partially to blame, said Mr Mak.

"More of them are from China and are turning to suburban residential projects, this compared to earlier batches of buyers like Europeans, Indonesians and Australians who tend to favour snapping up homes in the prime districts."

Next year will no doubt be a challenging one for the private residential market as it adapts to the new cooling measures and the economic slowdown.

Segments within the residential market will become more distinct, say analysts, with landed property to be a more resilient sector due to its limited supply and lower foreign participation.

For now, both buyers and developers are playing a waiting game, said property consultants, and a clearer picture of what tone the market will take will probably emerge only later next year.

Source: The Straits Times

Our two-cents worth on the subject: Unless a new world order takes over the local private property market scene next year, we reckon apartments in Districts 9, 10 and 11 will generally hold their values better than those in the other districts. This is especially when a major price correction does occur.

As such, these "prime" districts will continue to generate decent demands (albeit lower expected transaction volumes due to the new cooling measures that may discourage some foreign buyings).

Project sales update: The Hillier & The Nautical

2011-12-23T20:13:00.003+08:00

The Hillier
Over at Hillview Avenue, Far East Organization is said to have collected more than 100 cheques for Soho-style apartments at The Hillier since it began previewing the project last Friday. The buyers for the 99-year leashold project are mostly Singaporeans.

The average price achieved is $1,150psf, after absorption of the standard 3% stamp duty and provision of a furniture voucher. The apartments, ranging from about 500sqft to 800-plus sqft, come with a flexible floor plan and a 3.4-metre ceiling height, in line with Far East's recently launched Soho brand offering "strategic locale, excellent connectivity and flexible space". The brand is inspired by New York City's trendy Soho neighbourhood.

The Hillier, near the upcoming Hillview MRT Station on the Downtown Line, will be a mixed-use development with 528 Soho apartments sitting on a two-storey retail and lifestyle podium, hillV2. Far East will retain the retail component, where well-known New York grocer Dean & DeLuca will have an outlet.

The Nautical
Over at Jalan Sendudok in Sembawang, Hao Yuan Investment, controlled by mainland China parties, is said to have issued options for about 50-plus units for The Nautical condo. The developer is understood to be deciding when to hold an official launch of teh project, which will be accompanied by the start of an advertising campaign.

The average price of about $860psf for the five-storey project, which will have 435 apartments, is after a 5% early-bird discount.

Prices of a typical unit without private enclosed space or roof terrace will be in the $850-880psf range on average.

The Nautical comprises one, two, three and four-bedroom units and penthouses (including 32 dual-key units). Absolute prices start from about $409,000 for a 420sqft one-bedder. The highest-priced unit, at slightly over $1.5 million, is a 1,916sqft penthouse.

Buyers of the 50-plus units are mostly HDB upgraders, comprising predominantly Singaporeans.

CBRE, GPS and PropNex are marketing agents for The Nautical.

The project's development is managed by MCC Land, a unit of Chinese state-owned enterprise Metallurgical Corporation of China or MCC Group. MCC Land is also the developer of Canberra Residences, which is next to The Nautcial. The 320-unit Canberra Residences, which was released in January at an average price of around $830psf, is about 90% sold. Both condo projects are on 99-year sites and are five storeys high.

Source: THE Business Times

Faber Garden Enbloc: Update

2011-12-22T22:02:00.000+08:00

The wife and I have heard that the Faber Garden tender has closed on Nov 22 with no bid received.

But given the $830 million price tag, it is not difficult to appreciate why.

Click on the link below to read our previous post on the Faber Garden collective sale:
http://www.sgproptalk.blogspot.com/2011/10/enbloc-news-faber-garden-dunearn.html

We are now waiting with bated breath for the en-bloc result of Thomson View, which tender will expire on Jan 12, 2012. The asking price of between $595 million and $635 million is a major stumbling block, but we are rooting for this one to go through (vested interest, but no, we do not own a unit in this development)...

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Three more GLS sites released

2011-12-22T13:02:00.001+08:00

The government has released three residential sites for sale on Thursday. These are at Bedok South Avenue 3, Jervois Road and Boon Lay Way.

The Urban Redevelopment Authority (URA) said they can yield about 1,325 housing units, adding to the 21,560 units launched for sale under the Government Land Sales (GLS) Programme this year.

The land parcels at Bedok South Avenue 3 and Jervois Road are launched for sale under the Confirmed List, while the site at Boon Lay Way is made available for application for sale under the Reserve List of the second half 2011 GLS Programme.

The land parcel at Boon Lay Way in Jurong Gateway, envisioned as Singapore's largest commercial hub outside the city centre, is expected to have a good mix of office, retail, hotel,entertainment, food & beverage (F&B) and other complementary uses. With a site area of about 1.1 hectares, it can potentially yield about 590 housing units.

The 2.8 hectare land parcel at Bedok South Avenue 3 is near Tanah Merah Interchange, while the Jervois Road land parcel, with a site area of about 0.8 hectares, is at the fringe of the city centre near Redhill MRT Station.

Source: Channel News Asia

The wife and I understand that tender for the residential site at Jervois Road will close on February 2, 2012, while the one for Bedok South Avenue 3 will close on February 9, 2012.

And under the Government's Reserve List system, the land parcel at Boon Lay Way will be released for sale if the criteria for the triggering of the site are met. When the site is put up for tender, a tender period of about four weeks will be allowed before the tender closes.

Location of GLS sites
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Had your daily dose of laughter yet?

2011-12-21T17:32:00.002+08:00

The cartoon is from gapingvoid.com, which we featured in our "Quote of the day" widget.

And since today's offering is property related (sort of), the wife and I reckon we should post it for a few chuckles.

Project Spotlight: Scotts Square

2011-12-20T20:33:00.000+08:00

Scotts Square hits $3,764psf
by Cheryl Cheah

One of the prime condominiums that saw increased buying interest from foreigners last month was Scotts Square by Wheelock Properties, which obtained its temporary occupation permit (TOP) in September. It features 338 high-end apartments in two towers of 35- and 43-storeys sitting on top of an 80,000sqft retail podium. The freehold development is located in the prime Scotts Road, flanked on both sides by the Grand Hyatt and Marriott Hotel. Apartments are a mix of one-, two- and three-bedroom units, with sizes ranging from 624 to 1,249sqft.

Since obtaining their TOPs, the residential units in the development have seen a spike in transactions. There were three in the week of Nov 15 to 22., based on the latest caveats lodged and downloaded from URA Realis as at Dec 6. According to Joseph Tan, executive director of residential services at CB Richard Ellis (CBRE), the exclusive marketing agent for Scotts Square, almost 20 units were sold since TOP, with most of the units sold in November. However, caveats have yet to be lodged.

Although there haven't been that many sub-sale transactions, owners are now asking for prices in the range of $4,000 to $5,000psf, says Don Chiam, a property agent and division head of Savills.

The most recent transaction was the sub-sale of a 1,249sqft, three-bedroom unit on the 13th floor, which changed hands for $4.7 million ($3,764psf). Two other units on the 11th level, both 635sqft, one-bedroom apartments, were sold for $2.4 million each ($3,710psf) on Nov 17. To date, well over 250 units have been sold at the latest median price at $3,710psf. In terms of rental rates, a 947sqft, two-bedroom unit was recently transacted at $8,000 per month, which works out to around $8.44psf per month, notes CBRE's Tan. Quite a few customers are also "repeat buyers", those who had bought a unit for their own use earlier, and then purchased another unit as an investment. Almost half of the buyers are said to be foreigners.

Scotts Square is said to be popular with foreign buyers, particularly Indonesians and Chinese. "The Indonesian buyers, in particular, like it because of the location where there are many luxury boutiques but the interest among local investors are increasing as well," says Lily Gozali, a senior realty adviser of KF Property Network. "It's too early to tell what the new measures will have on foreign buying interest."

Investor interest has returned to Scotts Road area possibly owing to the recent preview of Far East Organization's 231-unit Scotts Tower, a small office/home office (Soho) project. Of the initial 56 units released in the 103-year leasehold project located at the corner of Scotts Road and Cairnhill Road, 34 had been sold prior to its official launch. Average prices achieved for the units sold are said to be $3,100psf. Quantum prices start from $1.9 million for a 624sqft one-bedroom Soho apartment. The project is designed by award-winning, co-founder and principal architect of UNStudio in Amsterdam, Ben van Berkel, and contains one- to three-bedroom apartments and four-bedroom penthouses. Given the positive response, Far East Organization officially launched the project on Dec 7.

Source: THEEDGE SINGAPORE

The Estuary aka MCL's 100% sold project in Yishun...

2011-12-19T14:45:00.000+08:00

The wife and I happened to be in Yishun over the weekend and took this photo of The Estuary.

It looks like construction is chugging along quite well. From our vintage point (i.e. standing in traffic at the intersection), the wife and I felt that the outer-most block at the corner of Yishun Ave 1 and 2 (Block 87) is way too close to the main road. But we both agreed that the view of Lower Seletar Reservoir from The Estuary is probably more pleasant compared to what you get with those new developments along Bedok Reservoir....and minus the drowned souls too (bless them!).
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Sharp fall in number of properties going under the hammer

2011-12-18T13:31:00.004+08:00

The Business Times has reported that value of properties sold at auction this year has plunged to a three-year low of $95.62 million.

This is due mainly to a chill in secondary-market sales of residential properties following higher seller's stamp duty rates introduced in January, says Colliers International.

It (Colliers) predicts a further decline with the figure for next year potentially coming in close to the $83.7 million low plumbed in 2008, during the global financial crisis.

In the past year, residential properties made up more than half of total auction sales value. This year, their share slipped to just 28.4%, compared with 51.3% in 2010 and 52.5% in 2009. Investors have diverted their attention to non-residential properties due to the cooling measures aimed at the residential sector.

Source: The Business Times

Seems like the hammer is more useful for breaking SMRT trains' glass windows (caveat: only when the train breaks down inside the tunnel and the ventilation fans start shutting down, although SMRT has strongly advised agianst doing so) than for auctioning properties these days...

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November's home sales up 22.3% month-on-month

2011-12-16T11:19:00.002+08:00

Just before the cooling measures on Dec 7 changed the property landscape, private home sales had spiked sharply in November, the latest numbers released by the Urban Redevelopment Authority (URA) shows. But the immediate future looks starkly different, as consultants expect sales to slow by 20 to 30%.

Buyers snapped up 1,701 private homes in November, excluding executive condominiums (ECs) - a 22.3% increase from October's 1,391 units.

Including ECs, 1,854 homes were sold, compared to 1,642 in October. This translates to 153 ECs being sold in November. (*shouldn't the Nov EC sales be 212?!)

The cooling measures have changed the equation.

Png Poh Soon, director, consultancy and research at Knight Frank, says that excluding executive condominiums (ECs), sales could fall to some 1,000 units or fewer per month. After Chinese New Year, this could rise moderately to between 1,100 to 1,200 units he said.

ERA key executive officer, Eugene Lim agreed. "We expect the market to take a breather in December and January as developers and buyers take stock of the recent changes... We can expect slower sales by about 20 to 30% over this festive period," he noted.

Added PropNex Realty chief executive Mohamed Ismail: "It will be interesting to see the results of private property sales from December onwards, especially after the ABSD (additional buyer's stamp duty) has taken effect."

On Dec 7, the government announced a series of cooling measures, which included an additional 10% stamp duty for foreign buyers.

According to Chia Siew Chuin, director of research and advisory, at Colliers International, these measures could result in an initial knee-jerk reaction in the market. That, coupled with potential homebuyers who may be sidelined during the year-end school holiday and festive season, is likely to put a cap on demand in December.

In the first 11 months of the year, developers had sold 15,393 private homes (excluding ECs), and 2,855 ECs. For the whole of last year, developers sold 16,292 private homes and 1,052 ECs.

The slowdown in December could mean that the total sale of private homes in the primary market may now be close to last year's level - instead of easily surpassing it.

Taking into account the economic outlook and likely effects of the new measure, take-up for new homes sales in 2012 could potentially fall between 9,000 to 11,000 units, said Ms Chia.

Alan Cheong, associate director or Savills Research and consultancy added: : Transaction volumes should be tepid in the light of a standoff between local buyers who think they can get a better deal and developers who have the financial strength to stay put."

Dennis Wee Group's senior manager in research and consultancy, Lee Sze Teck, added: "It could be till February that we will see the full effect of the ABSD. Most developers are adopting a wait and see approach before deciding whether to offer relief package to offset the ABSD."

According to CBRE, prices of luxury/prime residential properties could fall by 10 to 15% in 2012, whereas mass-market homes could fall by 5 - 10%. Landed home prices will likely see a smaller correction of less than 5% since foreigners are generally not allowed to buy and supply is limited.

"However, we are of the opinion that these measures are unlikely to be a permanent feature because of the nature of Singapore's highly open economy," CBRE added.

Savills' Mr Cheong added: "Property prices were already moderating before these cooling measures were announced. In the face of global uncertainties, these measures came as a surprise, not in terms of timing, but in the form."
The market had looked quite hot before the measures were announced. Top sellers in November included Bedok Residences (477 units sold at $1,359psf median price), The Palette (367 units sold at $895psf median price), Parc Vera (83 units at $825psf median price).

One of the drivers pushing sales was the supply of new units in the market, say consultants; in a move to launch projects before the year-end holiday period, developers released a total of 1,979 units for sale, a month-to-month increase of 47.9%.

This marks the second highest launch and sales volume this year, after April's 2,055 units launched and 1,805 sold, said Colliers' Ms Chia.

The Outside Central Region (OCR) - where suburban mass-market condominiums are located - dominated November's launch and sale figures. Sales in the OCR jumped 49% month-on-month in November to 1,328 units, or 78.1% of all units sold.

This is also the highest monthly sales in the region, since July 2009.

New launches were also up, helping drive new demand, with 1,518 new units launched to the (OCR) market in November, an increase of some 123% compared to October, pointed out Chua Yang Liang, from Jones Lang LaSalle.

Colliers International's analysis showed that about 37% of the 1,701 homes sold by developers were priced at $1,000psf or less. More than half of the transactions (about 52%) fell between $1,000 and $1,500psf.

Source: The Business Times

The wife and I were reminded by the fact that last year's total private home sales of 16,292 units was a record. So given the slew of cooling measures announced by the Government (SSD, ABSD etc) so far this year and the poorer global economic situation compared to last year, the property market (15,393 units as of November) has done spectacularly well year to date.

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THE CASCADIA: Want to know how it looks like inside?

2011-12-15T22:37:00.004+08:00

The Cascadia has received its Temporary Occupation Permit (TOP) a few months ago. The wife and I had the opportunity to visit the development today and here are the photos we took.

The Cascadia has a total of 13 blocks. The "inner cluster" (Blocks 929, 931, 933, 935 & 937) are located at the back of the development. The 5 blocks are much too close to each other for our comfort, and we actually felt a tad claustrophobic walking around the grounds between these blocks.

The "external cluster" (Blocks 921, 923, 925, 927, 941, 943 & 945) lined the swimming pools and water features that are located at the front portion of the development. The 7 blocks within this cluster are better distance apart from each other, and most of the inner-facing units have nice view of the pool area. However, there seems to be a distinct lack of laundry drying area within the apartment units (a common problem with new developments these days) - you can see laundry hanging on the glass partition in many of the balconies, which is a shame.

The gym is located at the clubhouse next to the main pool. It is elevated so you get an excellent view of the swimmers and sun-tanners while you are running on the thread-mills.

The clubhouse also houses an outdoor lounge area and a function room.

The wife and I love the kid's pool - our son will probably spend hours playing here... if we are living in The Cascadia that is (one can always dream!)

There are two things within the development that we did not particularly like. The grounds (especially around the inner-cluster) are rather green but the vegetation are (at least in our opinion) a tad over-done. Maybe this is deliberate, i.e. to provide a sense of nature, but we find that it looked rather "upkept".

We also have an issue with the underground carpark. Several sections have a huge "step-down" (see photo) with no retaining walls or dividing rails in between. Although the parking blocks at the back of each lot will prevent cars from rolling over the step, young kids and the elderly may trip over and really hurt themselves. The management should probably look into erecting some kind of barrier to prevent (human) accidents from happening.

For those who are interested in The Cascadia, you be pleased to know that there are still some "developer's unit" available. The sales office is on-site and you now have the added luxury of actually seeing what you are buying into.

Click on the links below to see the showflat photos and read our review of The Cascadia:

http://sgproptalk.blogspot.com/2010/06/cascadia-review.html

http://sgproptalk.blogspot.com/2010/06/cascadia-showflat-photos.html

Property Spotlight: Shelford Road/ Adam Road areas

2011-12-14T22:52:00.006+08:00

The Shelford Road neighbourhood has traditionally been popular with families because of its location within a 1-km radius of Nanyang Primary School, says Grace Ng, deputy managing director of Colliers International. "Some Singaporeans who live elsewhere are even willing to relocate to the neighbourhood, by first renting an apartment in the area to be within 1-km of the school, and subsequently buying a unit," she says.

The area is likely to see greater interest, with the upcoming Botanic Gardens MRT station, which is within walking distance, as well as the recently opened Farrer Road MRT station on the Circle Line, adds Ng.

Several new condominiums have sprung up in the area in recent years. As it is in a landed housing neighbourhood, the condos in the Shelford Road area are generally low-rise, with a height limit of five storeys. Newly completed freehold condos include the 33-unit Shelford 23 by Hoi Hup, and City Developments' 77-unit Shelford Suites. Next door to Shelford Suites is 18 Shelford by Popular Land, completed last year.

At Shelford 23, the most recent transaction was the sub-sale of an 829sqft two-bedroom unit that changed hands in June for $1.42 million ($1,713psf). Prices of secondary transactions done at Shelford Suites from September to early-November ranged from $1,606 to $1,800psf, according to URA Realis. Meanwhile, three units at 18 Shelford were sold in October at median price of $1,900psf, probably the highest price achieved in the area, say some property agents.

Construction is just starting at the 69-unit 10 Shelford by boutique developer DB2 Development, where units are one-bedroom and one-plus-study measuring 431 to 980sqft. Launched in May, the project is fully sold, with the latest transaction being the sale of a one-bedroom 431sqft third-floor unit for $806,900 ($1,874psf).

With new condos in the Shelford area trading at $1,600 to $1,900psf, homebuyers and investors are eyeing some of the older condos in the area, which have been transacted at $1,300 to $1,500psf. "Some people prefer the older condos because the pricing looks more attractive, given that these condos are freehold and located in prime district 11, compared with some of the leasehold condos in the suburbs, where shoebox apartments are trading for up to $1,500 to $1,600psf," says Colliers' Ng.

A recent transaction in the Shelford area was done at Nineteen Shelford, a 256-unit freehold condo by Bonvests Holdings and completed 15 years ago. It was for an 883sqft, two-bedroom unit on the second level, which was sold for $1.2 million ($1,399psf), according to a caveat lodged with URA on Nov 15. The development has a mix of studio units starting from 635sqft to three-bedroom apartments of 1,163sqft, as well as maisonette units of 1,281 to 1,572sqft.

Another condo that has seen buying interest is the 118-unit freehold Adam Park Condo, developed by Tuan Seng Holdings and completed in 2004. The project, designed with a tropical resort theme and a jungle spa, has two entrances - one on Shelford Road and the other on Adam Road. The condo comprises only two- to four-bedroom apartments, measuring 893 to 1,744sqft.

Based on the latest caveats lodged and downloaded from URA Realis as at Nov 30, there were two recent transactions at Adam Park Condo. Both transactions involved the sale of 958sqft two-bedroom units in different blocks. One was a third-level unit that was sold for $1.4 million ($1,467psf), the second time it has changed hands in the resale market. The unit last changed hands in February 2010 for $1.15 million ($1,200psf) and its price at launch in June 2002 was $895,510 ($935psf).

The other unit went for $1.3 million ($1,376psf). The seller had purchased it in June 2002 for $890,120 ($929psf), thus seeing a price appreciation of 48% in almost a decade.

Owners of older condos such as Adam Park Condo are asking for $1,300 to $1,400psf, says Kelly Ng, associate agency head at real-estate agency GPS Alliance. Meanwhile, in the Shelford area, owners of older condos such as Nineteen Shelford are asking for $1,400 to $1,600psf. "Newer condos in the area tend to feature smaller units, so there is still demand for older condos," she adds. "Western expatriates, in particular, prefer the older condos because they are bigger. Sale prices are still stable, as there's still demand for units in the Adam Road/Shelford area."

While rental rates in the area are still relatively stable, GPS Alliance's Ng says some expatriates who had previously chosen the Adam Road area for its tranquillity and convenience are now opting for units in the Newton and Novena area instead. She attributes this change in preference to the ongoing construction of the Circle Line, which has "disrupted the tranquillity and traffic in the Adam Road area". However, the area continues to be a draw for families that want to move there for the sake of their children's education. Besides Singapore residents, the area still attracts mainland Chinese and Indonesian investors, she adds.

Source: THEEDGE SINGAPORE

The wife and I have a couple of observations/comments (what's new?) after reading the article:

1. The Botanic Gardens MRT Station is no longer an "upcoming" station, as it has been operating since October 8 (okay, at least on days when train services on the Circle Line are not disrupted).

2. And speaking of MRT, the condos featured in the article are not exactly "within walking distances" from the nearest operating MRT Station (i.e. Botanic Gardens). The distances are probably walk-able but we reckon it is not an especially pleasant walk on a hot (or worse, rainy) day.

3. Although condos in the Shelford Road neighbourhood may be within 1-km of Nanyang Primary School, balloting is still very much the order of the day... if experience of the past few years is any indication.
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Enbloc News: Robin Road site sold for $52 million

2011-12-14T22:14:00.000+08:00

The collective sale of a 16-unit apartment located at Robin Road has gone through for $52 million, says property consulting firm Credo Real Estate.

The winning bid came from Sing Holdings, which vied for the two 4-storey block apartment that forms part of four adjoining properties.

Ms Yong Choon Fah, Executive Director of Credo Real Estate, said: "More than 80% of the owners at 2 to 8 Robin Road have consented to Sing Holdings' offer of $52 million, which translates to $1,462 psf ppr based on an allowable plot ratio of 1.54, including balconies."

Ms Yong added "Development charge is not payable for the 10% balconies Gross Floor Area space allowed."

Sing Holdings had previously won the tender for two other adjoining developments: Robin Court for $77.33 million and Robin Star for $47 million via by private treaty.

Combined, the site can be turned into a joint condominium development of up to five storeys.

The latest en bloc site measures 23,084sqft, and together, Sing Holdings will have a total land area of 87,963 sqft.

Source: Channel News Asia

It took 2 additional months of negotiations after the tender closed and the final price is a tad shy of the $58 million that owners were originally asking for, but the collective sale did garner a favorable result...

Click below to read our original post about this collective sale:

http://sgproptalk.blogspot.com/2011/09/more-enbloc-news-no-2-8-robin-road.html

New Project Info: The Nautical @Sembawang

2011-12-13T19:54:00.004+08:00

Project Name:   The Nautical
Developer:   MCC Land
Location:   Jalan Sendudok (next to Sembawang Shopping Centre)
Tenure:   99-year wef 29 August 2011
Site Area:   297,791sqft
Plot Ratio:   1.4
Total Units:   435 (17 Blocks of 5-Storey each)
Total Parking Lots:   441 excluding handicapped lots
Estimated TOP:   28 February 2016

Unit Types & Approx. Sizes
1-Bedroom (57 units):   430 - 576sqft
2-Bedroom (64 units):   778 - 975sqft
3-Bedroom (148 units):   884 - 1,266sqft
3-Bedroom Premium (102 units):   1,142 - 1,409sqft
4-Bedroom (16 units):   1,637 - 1,866sqft
Penthouses (48 units):   1,579 - 1,928sqft

Location Map

Site Plan

The wife and I understand that preview for The Nautical will commence sometime after 15 December 2011.

Residential property price index: 1997 - 2011

2011-12-12T21:35:00.001+08:00

Below is published in The Straits Times last Friday.

Private home prices is now at an all time high since 1997...

Property sector update

2011-12-12T18:52:00.002+08:00

Here is a report by Kim Eng Research about the latest implementation of additional buyer's stamp duty (ABSD) in the Singapore property market.

Kim Eng is expecting a drop of 10 - 20% in mass-market home prices next year due to the new cooling measure.

But what we find most interesting about the report is the list showing foreigner as a percentage of total buyers for selected new projects - these range from 2% for The Greenwich to a whopping 56% for Silversea!

Click the link below to read the full report:
http://www.scribd.com/fullscreen/75444842?access_key=key-jez0skaiifz11m92z52

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Now is not the time to cool private property market...really?!

2011-12-11T15:29:00.007+08:00

The wife and I came across this article by Mr Andrew da Roza in the forum page of The Straits Times yesterday.

While only time will tell if the Government's latest set of property cooling measures is counter-intuitive, we felt that Mr da Roza's arguments against the additional buyer's stamp duty (ABSD) for foreigners are flawed on at least two counts:

1. There is a fundamental difference between immigrant and foreigner. Based on several on-line definitions of the former, an immigrant is a person who leaves one country to settle permanently in another. Taking this definition of immigrant within the Singapore context, one would be referring to PRs and "new citizens", i.e. those who are prepared to sink their roots in Singapore and contribute towards the betterment of our country. This is opposed to foreigners who are just working here (because the prospects for them in Singapore are currently better than what they can find elsewhere, but they will not hesitate to move once the situation changes) or foreign investors (who are moving money into Singapore because it currently offers the best returns/stability, but will pull their money out at the first sign of change ).
The new set of property control measures already allow PRs and Citizens to own at least one property without having to pay the ABSD. This should help fulfil the aspirations of home-ownership for these two groups of people living in Singapore. And should they wish to purchase additional properties for investment (read: profit) purposes, the Government has no obligation to help them.
As far as foreigners who are working or investing in Singapore are concerned, they are mostly here under the notion of "greener pastures". And once the economic situation deteriorates, those who can find alternative employment/investment elsewhere will move - a fact acknowledged by Mr da Roza.
Given such, the wife and I question the wisdom of trying to "attract" foreigners (and their money) into Singapore by providing them with a level playing field for private property purchase.

2. Mr da Roza also mentioned that "even China and Hong Kong have relented in the face of imminent global recession and are moving to lift their property cooling measures". The wife and I are particularly interested to know where he gets his facts from. The information we have gathered suggests that both China and Hong Kong are still very determined to keep property prices in check, but they will consider relaxing their property cooling measures if the global economic situation starts to affect local property prices adversely. We believe this is the same stand that our Government will adopt. The whole premise of the ABSD is not to crash the property market, rather to prevent a property bubble from emerging.

And contrary to Mr da Roza's final comments, if something is not done to rein in the sky-high property prices that are still prevalent despite the economic problems that have surfaced around the world, potential buyers such as Ms Lim and Ms Yang are more likely to be left holding negative equity in their new matrimonial homes should they decide to plunge into the property market now...

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Discounts galore from developers post-ABSD...

2011-12-10T19:05:00.000+08:00

Developers are already offering packages on homes to offset the stiff new stamp duty measures that came into effect only two days ago.

Far East Organization is offering a 5% relief package to affected buyers at all of its already-launched projects.

It will reimburse buyers 3% of the unit price to offset the new stamp duty. Buyers will also get a furniture voucher worth 2% of the flat price.

They will get the voucher only after putting down a 30% deposit if the project has not been completed.

The package applies across the board to Singaporeans, permanent residents (PRs) and foreigners, so foreigners will still be worse off after the new measures.

Far East's already-launched projects have another discount that differs between properties.

Prices of units at its Seastrand project in Pasir Ris Drive 3 are discounted by up to14%, making the cheapest unit an estimated $937psf. But with only three- and four-bedroom units left and the smallest three-bedder at 1,109sqft, the minimum purchase now would cost about $1.04 million before stamp duty.

With an additional 10% buyer's stamp duty for foreigners of $104,000 now, Far East's relief package would help a buyer save almost $52,000 - about $30,000 initially and the rest subsequently.

However, a Far East agent said that unofficially the discount rate could go up to 16% of the original unit price. This means buyers can negotiate a 21% discount off the original total price by combining the uniform 5% cut with the discount that applies to the Seastrand.

This would more than offset the extra stamp duty incurred, although it is believed that the discount applies on a case-by-case basis.

Far East has not announced a dateline for its relief package but the agent said it could last until the end of this month.

The Seastrand's temporary occupation permit (TOP) is expected on Dec 31, 2016.

Wing Tai's luxury Helios Residences at Cairnhill Circle is also offering a relief package, said a company sales agent.

Buyers will get a cash rebate of up to 2% of the total price upon payment. That goes up to 2.5% at the start of the second year of occupation and 3% at the start of the third year.

They will not be allowed to sell their unit for three years following purchase.

The smaller units can cost around $4.2 million, said the agent, adding that the relief package is meant to help "lessen the burden" on customers.

The agent said the deal is only applicable to Helios Residences, as its target market is foreigners, who are more likely to be affected by the stamp duty imposition, but did not specify a deadline. Helios Residences obtained its TOP on Jan 28.

Sales agents at Keppel Land, UOL and CapitaLand did not know of any discount packages being offered.

Real estate agents at DWG, DTZ and Huttons also said their firms were not offering discount packages, but some said they might be able to negotiate an additional 1% cash rebate.

Source: The Straits Times

Given the partial/full absorption of ABSD by developers through the additional discounts that they are giving on their projects, the latest property measure is looking increasingly like a transfer of wealth from developers to our Government...
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Enbloc News: Henry Park Apartments sold for $175.9 million!

2011-12-09T21:49:00.002+08:00

A collective sale site at Henry Park located off Holland Road has been sold to Kentish View Pte Ltd, a unit of Far East Organization, for $175.888 million, making it the largest en bloc deal by value this year.

Its marketing agent Credo Real Estate says it has been a closely contested exercise that attracted five submissions for the prime District 10 apartment site.

The 999-year leasehold site with a land area of nearly 100,000sqft comprises 48 apartments and 16 shop units.

If the sale is approved by the Strata Titles Board, each apartment owner stands to pocket gross proceeds of between $2.3 million and $2.9 million, while the shop owner could receive between $3.2 million and $4.7million each.

Credo says this would be the largest en bloc sale deal by value out of the 47 known deals done this year, the average of which has been $60 million.

The Henry Park sale surpasses the collective deal for Hong Leong Garden Shopping Centre which fetched $171 million in September.

Credo says the sale price for Henry Park Apartments translates to a land rate of about $1,258 psf ppr.
It adds that the developer has also made an application to purchase an adjoining State land parcel of nearly 1,400sqft.

If the application is accepted, Credo says taking the same sales price, it will translate to a land rate of about $1,246 psf ppr.

Source: Channel News Asia

Well, the wife and I did say that this one has potential to go through successfully before the end of the year. It'll be interesting to see if Far East can build and sell out the new development on this site within the stipulated 5-year period...

Click below to read our previous post on the Henry Park Apartments collective sale:
http://sgproptalk.blogspot.com/2011/11/more-on-henry-park-apartments-en-bloc.html

Update (10 December 2011):
The Straits Times today reported that the tender for Henry Park Apartments closed on Dec 1, with the sale concluded on Wednesday, just avoiding the new cooling measures which kicked in on Thursday. The new rules require developers to build and sell all the units in a new project within five years of buying the site.

The 99,800sqft site is zoned residential with commercial at the first storey in the 2008 masterplan. The authorities have allowed a gross plot ratio of up to 1.4 and a maxium building height of four storeys.

The wife and I stand corrected on our earlier comments.
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ABSD: Do you know that it applies to Developers too?

2011-12-09T18:16:00.001+08:00

To put things in perspective, if a developer buys a residential site for $200 million and is unable to meet the five-year limit to complete building the new residential project on the site and selling all the units, it will have to pay an additional $20 million in ABSD.

And it looks like a much longer wait for "en-bloc aspirants" such as Pine Grove, Laguna Park, Pearlbank Apartments etc...

ABSD: Case of not all foreigners being equal...

2011-12-09T11:50:00.001+08:00

Citizens of five countries that have free trade deals with Singapore, including the United States and Switzerland, will be treated as Singaporean for the purposes of the new stamp duty measures.

When they buy a private home, Americans, Swiss and nationals from Liechtenstein, Norway and Iceland will be treated the same as Singapore citizens, the taxman said in a guide on Wednesday.

This will enable them to avoid the new 10% additional buyer's stamp duty that foreigners now have to pay when they buy a private home.

Free trade agreements usually ensure that a country's citizens are accorded certain trade protections when they are in the partner nation.

The Additional Buyer's Stamp Duty (ABSD), as the new levy is called, was announced by the Government on Wednesday and hits foreigners hardest. They have to pay an additional stamp duty of 10% when buying a home.

But the foreigners from the five countries can apply for remission or a relief.

The Inland Revenue Authority of Singapore (Iras) website says they must provide identification, acceptance to option to purchase/sale, the purchase agreement and the ABSD declaration form.

Under the new rules, permanent residents (PRs) buying a second and subsequent property will pay an additional 3% stamp duty, while Singaporeans buying their third or subsequent homes must pay an extra 3%.

The rule is also that for purchases made by two or more parties with mixed residency status, such as a Singaporean with PR, the higher rate will be imposed.

But Iras also gave examples of situations where remissions can apply. These are in cases where married couples have mixed residency status.

For example, a PR who currently owns a property while his Singaporean spouse owns none can apply for relief from the additional stamp duty when they co-purchase a home.

In another scenario, a PR and a Singaporean spouse co-own a property. When they next jointly buy a property, they can apply to be exempt from the 3% levy.

the relevant documents have to be submitted to Iras.

Relief will also be provided for qualifying developers.

Iras also said that people who want to downgrade from private housing to an HDB flat will be allowed a concessionary period to sell their private residential properties. The application for relief in such cases can be made through the HDB.

More details about relief schemes can be found in the ABSD e-Tax guide, which can be downloaded from www.iras.gov.sg/irasHome/page04.aspx?id=910

Source: The Straits Times

The wife and I wonders if the same courtesy will be accorded to us should we decide to buy a private property in... e.g. Liechtenstein, assuming the citizens there get preferential treatment over foreigners for property purchase.

We have not looked at the ABSD e-Tax guide (yet) but reading the Straits Times report, it sure sounds like citizens of the five countries that have free trade deals with Singapore are treated better than our PRs when comes to buying a second property....

Disclaimer: We are NOT according animal status to any nationality here.

Has it really been two years...?

2011-12-09T01:11:00.010+08:00

The wife and I had originally intended to post this on Wednesday, since Dec 7th was the second anniversary of SG PropTalk. However, the Government's sudden decision to implement the Additional Buyer's Stamp Duty took centrestage over our little tribute during the past two days.

The past year has been a rather busy one for us on the property front: We sold our (tiny) apartment in District 10 at the end of 2010, decided to go on rental for a year, bought a 30+ year-old apartment in District 20 during 1Q 2011, embarked on a 3-month renovation stint whereby we practically gutted the entire interior of the apartment and rebuilt, and have moved into our "new" home about 2 months ago. But enough about us...

With the support from our readers, SG PropTalk has achieved over 360,000 page views and now averages more than 400 unique visits daily. Although the numbers are peanuts compared to the other more established (commercial) property web/blog sites , the wife and I are pretty proud of our "achievements": Just remember that we are merely a two-person outfit and running our blog during our spare time.

For the past year, we have tried to update our blog on a daily basis (sometimes with multiple postings a day). We have also included more news and editorial articles about the Singapore private property scene, and even some from further ashore. We have also strived to maintain objectiveness and impartiality when it comes to our comments and reviews. And we certainly hope that the information we have shared on our blog have been useful to our readers.. in some small ways at least.

The wife and I can also proudly proclaimed that SG PropTalk has a small reader following now. We are continually encouraged by the discussions that are generated through our postings and in our forum page. We are also receiving more emails asking us for property recommendations or our opinions on specific projects. We still maintain that we are no experts in the property field but we have tried to answer all queries to the best of our abilities (and as promptly as we can managed).

There are certainly areas that the wife and I can do better: The number of new project reviews have dropped compared to last year. This is despite the over-whelming number of new launches in 2011. But due to the hectic demands of our day-jobs and the added parental duties after our son started primary school this year, we are struggling somewhat to find time to visit showflats. And the last thing we want to do is "go through the motion". We will continue to provide reviews/our thoughts on new projects as often as we can manage them and we seek your continual understanding and patience on our limitations.

Last but not least... the wife and I thank you for supporting SG PropTalk during the past year. Please continue to support our blog and if you feel up to it, do click on our "Nuffnang" ads from time to time. And come same time next year, we hope SG PropTalk will still be around for us to make our little tribute speech again...

P/S: We welcome any suggestions/comments/constructive criticisms that our readers may have about SG PropTalk. So please keep these coming!

Yours Sincerely,
The Folks @SG PropTalk

http://sgproptalk.blogspot.com/2010/12/we-are-one.html
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Property market slowdown: So this time's for real then?

2011-12-08T19:45:00.000+08:00

The Singapore property market is bracing for a slowdown, with experts predicting a steep drop in transaction volume and prices over the next few months, following the latest cooling measures.

At least one real estate agency thinks the immediate reaction will be a slowdown in the private property market.

CEO of PropNex Realty Mohamed Ismail said he expects a price correction of approximately 15 to 20% in the central core region, and a correction of 10 to 15% in the mass market segment in the next six months.

PropNex also expects transaction volume for properties to dive by as much as 40% in the core central region - like Orchard and Marina Bay. This is because of the significant number of foreign buyers for such properties.

Meanwhile, PropNex expects transaction volume to fall by as much as 20% in the mass market segment.

Analysts expect buyers to adopt a wait-and-see approach.

Mr Mohamed said: "It takes a very bullish decision from a foreigner to come and invest in Singapore in today's market, having to pay a 13% stamp duty upfront, and (being) subjected to the Seller's Stamp Duty in the next four years, of 16%, 12%, 8% and 4%.

"And even if you sell after four years, if he buys a property today, he must expect at least a 25 to 30% increase in the property price to break even, taking into consideration other costs and interests and all other elements."

Under the latest changes, foreign buyers of private properties in Singapore will now have to fork out 10% more in stamp duty while permanent residents and Singaporeans are also affected with an increased stamp duty on their second and third properties respectively.

PropNex said the new measures could have been targeted to preserve affordable pricing in the mass market segment - homes costing less than $2 million where prices have surpassed $1,000psf.

It argues that having a blanket policy will impact the high-end market which has been the investment interest of the foreign buyers.

Norman Lu, a foreign buyer, said: "We are very disappointed about this rule. Because even though we are foreigners, we have been working in Singapore...we also contribute to this country. So as a foreigner, we feel that the government does not welcome us."

Source: Channel News Asia

Mr Lu may have felt hard done by our Government but then again, many countries around the world have similiar policies concerning foreign purchase of private residential properties. Maybe that's what they meant by "Citizenship has its privileges"...?

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ABSD: Reactions from Developers & Buyers

2011-12-08T12:15:00.004+08:00

DEVELOPERS SAY: Mass-market and luxury homes 'will all be hit'
The measures announced yesterday will hit developers aiming for the luxury market but mass-market builders will not escape either, said analysts.

High-end developers such as SC Global and Wing Tai could see demand slip as foreigners, who generally account for more than half of the sales in the upper-price brackets, will be hit by the additional 10% stamp duty.

This is over and above the existing buyer's stamp duty of 3%.

Independent research firm Sabio Global director Alan Lok said: "Traditionally, the Chinese buyers come here because Singapore is considerably cheaper than Hong Kong, but a stamp duty of 13% is quite drastic.

"This will definitely make them (foreign buyers) think twice about buying property here."

The mass market will also feel the impact as Chinese buyers have been steadily moving into the suburbs so the stamp duty levy is likely to cool their buying.

While a decline in demand is almost certain, analysts and developers believe the measures will not do much to dampen property prices given that land is still pricey and construction costs are rising.

Property developer Roxy-Pacific executive chairman and chief executive Teo Hong Lim said: "Well, it doesn't mean that just because sales are slow, we have to sell at a loss, right? We still have to break even."

However, he does not think that the measures will affect his business very much as 50% of his pipeline is made up of commercial - mainly retail and office - units.

He also added that foreign buyers only make up about 10% of his clientele on average.

Mr Wong Heang Fine, chief executive of CapitaLand Residential Singapore, said: "Given the uncertainty in current market outlook, the latest measures on additional buyer's stamp duty were unexpected. We will study the details and take them into consideration."

While share prices of all developers are likely to slide today, Kim Eng analyst Wilson Liew believes the impact will not be that great for those with a more diversified business model.

"There will be weakness in the short term, but CapitaLand for example has significant businesses in China, and that will be a buffer for them even if their Singapore business is affected," he added.

Additional Buyer's Stamp Duty - at a glance

BUYERS SAY: First-timers cheer move; others get cold feet
Early reactions to the latest round of property market measures were mixed though the consensus seems to be that home prices will moderate.

First-time Singaporean home buyers generally cheered the move, as they believe it will now be easier for them to get a foothold on the property ladder. Many have been concerned that foreign buyers, especially those purchasing mass-market homes, have been driving prices up.

But some foreigners and permanent residents (PRs) expressed disappointment at the measures, which they labelled as "harsh".

The hardest hit will be foreigners who are not PRs. They will be slugged with an additional 10% on any home purchase, on top of the existing stamp duty of about 3%.

For a foreigner buying a $1 million home, the stamp duty will jump significantly to $124,600 from $24,600.

PRs will also be slapped with a 3% additional stamp duty for their second and subsequent home purchases while Singaporeans will face the same charge only for their third and subsequent buys.

Property agents say that foreign buyers are likely to put any home purchases on hold in anticipation of prices dropping as the new measures take effect.

Some agents have already reported deals falling through in the first few hours after the measures were unveiled.

PropNex chief executive Mohamed Ismail said that two of his firm's foreign clients pulled out of separate deals at Marina Bay Residences. Another backed out of a deal for an Orchard Road property.

"Although one was already at his third viewing and will be unaffected if he closed the deal by today, he saw no pint because prices might drop," he said.

Mr Ismail added that the measures did not seem to be "well thought through" as their blanket application will adversely affect the high-end market in particular.

He suggested that the additional buyer's stamp duty be applied in a more targeted manner instead. For example, it could be applied to mass-market homes of less than $1,500psf so that the segment remained largely for Singaporean buyers, he said.

A Chinese buyer who wanted to be known as Mr Chen said that he was surprised at how "harsh" the new rules were. He had flown in from Shanghai last week to visit some friends but also to explore the possibility of buying a home in the prime districts of 9, 10 and 11.

He said that he would put his plans on hold until the market situation became clearer.

However, first-time Singaporean buyers and upgraders like human resource executive Germaine Lim welcomed the news, which they hope will bring prices down.

Ms Lim, 29, said: "Hopefully, without foreigners competing with us, we can finally find something within our budget."

Source: The Straits Times

Just when you think the property market cannot be "cooler"...

2011-12-07T23:55:00.002+08:00

The government has imposed an Additional Buyer's Stamp Duty (ABSD) for private property of between 3% and 10% for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market.

The changes take effect on December 8.

Foreigners will pay 10% Additional Buyer's Stamp Duty (ABSD) for any residential property.

Permanent Residents owning one and buying second and subsequent properties will pay 3% ABSD.

Singaporeans owning two and buying a third and subsequent residential properties will pay 3% Additional Buyer's Stamp Duty.

The ABSD will be imposed over and above the current Buyer's Stamp Duty, which are 1% on the first $180,000 of purchase consideration or market value of the property (whichever is higher), 2% on the next $180,000 and 3% for the remainder.

In a joint statement on Wednesday, the Finance and National Development ministries say the government's objective is to promote a sustainable residential property market where prices move in line with economic fundamentals.

They said prices of private residential properties have continued to rise, albeit more slowly in the last two quarters.

Prices are now 13% above the peak in the second quarter of 1996, and 16% above the more recent peak in the second quarter of 2008.

They said that even with the current economic uncertainties, the demand for private residential property remains firm.

Given the uncertainty in stock markets and with interest rates remaining low, private property in Singapore continues to attract local and foreign investors.

They added that excessive investment demand will make the property cycle more volatile, and thus increase the risks to Singapore's economy and banking system.

The government said the higher ABSD rate for foreign buyers in particular is necessary, in view of the large pool of external liquidity and strong buying interest from abroad, and the relatively small size of the Singapore market.

The government said foreign purchases account for 19% of all private residential property purchases in the second half of 2011, up from 7% in the first half of 2009.

For purchases made jointly by two or more parties (eg a Singaporean with a PR, or a PR with a foreigner), the higher applicable ABSD rate will be imposed.

For example, if a citizen purchases a property with a foreigner, the ABSD of 10% will apply.

In the case of a joint purchase by Singaporeans, who each already owns properties, the ABSD of 3% will apply as long as one of the purchasers already owns two properties.

Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam, said: "We have always had open markets and must keep them that way. However, the reality is that investment flows into our property market are now larger than before, and unlikely to recede as long as interest rates remain low.

"The additional buyer's stamp duty should help cool investment demand, and avoid the prospect of a major, destabilising correction further down the road."

Nicholas Mak, Executive Director of Research and Consultancy at SLP International, said: "It will curb investment demand for private residential properties quite drastically, especially demand from non-resident foreigners. And I think in the next one to two months or so, demand from non-resident foreigners will almost dry-up."

Home buyers are mixed in their views.

One Indian foreigner said: "I know there is a stamp duty, but any increase in that will probably take it out of my level where I want to buy."

An Indian who is a Permanent Resident said: "Nowadays, HDB properties are also difficult to buy, because of more conditions. So they have to buy property here. Definitely they'll keep buying more irrespective of whether the stamp duty is increased or not."

One Singaporean said: "It probably wouldn't have an effect in the short-term, because the property market prices are still rising, people are still speculating."

Minister for National Development Khaw Boon Wan said: "We are ramping up the supply of new Executive Condominium units through the Government Land Sales Programme.

"This will help higher-income Singaporeans own private condominium units in an affordable way, as the sale of new EC units is restricted to Singaporean households only."

Singaporean first-time buyers and upgraders, and buyers of HDB flats will not be affected by the new measure.

Certain reliefs will be provided so that the measure will not impact home occupation demand by residents.

For example, relief will be provided for Singaporean-foreigner/PR married couples buying their homes.

Reliefs will also be provided for qualifying developers and for purchases falling within the scope of Singapore's international trade agreements.

The government will continue to ensure an adequate supply of private housing to meet-medium term demand.

There are 41,000 unsold private housing units in the pipeline.

The government will inject sites that can potentially yield a total of 14,100 units in the 1H2012 Government Land Sales (GLS) Programme, similar to the supply in previous GLS programmes.

Of these, about 7,000 units will be from sites on the Confirmed List.

These numbers take into account the ample pipeline supply and the dampening effect of the ABSD.

The government will also expand the supply of executive condominiums (ECs) in 2012 and is prepared to release sites that can potentially yield 5,000 EC units for the entire year.

Sites for 3,500 EC units will be made available in 1H2012, including 3,000 EC units on the Confirmed List.

The Confirmed List quantum is comparable to the 3,000 EC units from five sites sold for the whole of 2011. More details will be provided in the press release for the 1H2012 GLS Programme on MND's website.

The Government will continue to monitor the property market and adjust its property policies in step with changes in the market and the economy.

Source: Channel News Asia

The wife and I have just returned from our short family vacation (literally that is, since we have only touched down like two hours ago) and this is the first piece of property news we happened to chance upon.

The Additional Buyer's Stamp Duty (ABSD) should appease (somewhat) those who are worried by the increasing number of private home purchases by foreigners, which they claimed have driven up property prices. It will also help to dampen the flow of "hot money" into our private property sector (which is probably the larger factor in driving up prices), given the current double-whammy of much higher buying and selling stamp duties.

And for Singaporeans that already own two private residential properties and wanting to buy a third, we reckon they should not complaint (too much) about the ABSD.

So maybe the government is finally listening, as they said they would...

Update: The Business Times (8 Dec 2011)

Tender for GLS site at Alexandra Road closed with 7 bids

2011-12-06T21:08:00.001+08:00

The tender for the development of a residential site at Alexandra Road closed on Tuesday with seven bids, the Urban Redevelopment Authority (URA) said.

The top bid of $396 million was jointly submitted by Sunmaster Holdings, Intrepid Investments and Garden Estates Limited. These are units of City Developments, Hong Leong Group and Hong Realty respectively.

The bid translates to $8,120.08 per sq m.

Tanglin Land submitted the second highest bid of $363 million, while Sherwood Development sent the third highest bid of $339.5 million. The lowest bid of $318.3 million was handed in by Multi Wealth (Singapore).

While the number of bids was fewer than analysts had expected, the margins between the bid prices were slim. The top bid was only 9.1% and 16.6% higher than the second and third highest bids.

"The keen interest and bidding by the consortium is spurred by the rare availability of an attractive site situated in a convenient and established location at the city fringe area that is generally popular with homebuyers/investors," said Ms Chia Siew Chuin, Director of Research & Advisory at Colliers International.

Analysts estimate the breakeven price for the site is around $1,300 psf.

Mr Li Hiaw Ho, Executive Director at CBRE said developers can build a high-rise project of over 40 storeys of some 550 apartments at the 99-year lease site.

Launched on October 17, the property measures 9,952.6 sq m with a maximum permissible gross floor area (GFA) of 48,768 sq m. It is located near the Redhill MRT station.

URA said it will award the tender after evaluating the bids.

Source: Channel News Asia

According to previous reports, the said site has a plot ratio of 4.9 and a maximum GFA of 524,936 sq ft, yielding between 540 and 580 units in a development that can be built up to 45 storeys.

Units at the neighbouring condo project Ascentia Sky were reportedly transacted at an average price of $1,381psf in the last six months, while units at Metropolitan Condominium, 100m away, transacted at $1,313psf.

Fewer high-end home deals, non-PR foreigners' purchase up

2011-12-05T21:20:00.001+08:00

Transactions in Singapore's high-end residential market, such as up-market apartments/condos in choice districts and bungalows on Sentosa Cove, have fallen this year, but non-permanent resident foreigners' share has gone up for both categories of properties, according to Savills Singapore.

Analysts attribute the increase partly to mainland Chinese fleeing restrictions on property buying in their home market and instead parking their monies in Singapore's property market. As well, some investors may be inclined to escape the economic gloom in Western economies and to favour the relatively healthier economies in Asia. Singapore stands out as a property buying destination in Asia for its transparency, political stability and relative safety.

Savills' analysts found that in the first 11 months of this year, 1,285 caveats were lodged for apartments and condos in districts 1, 4, 9, 10 and 11 priced at least $2,000psf of strata area - down 33% from the same year-ago period. The figure for full-year 2010 was 2,156.

However, non-PRs' share of purchases of non-landed homes in these five districts priced at over $1,951psf (or $21,000 per sqm) has increased from 28.4% last year to 37.8% in the first 11 months of 2011.

The latest figure surpasses the 31.1% in 2007 and 33.2% in 2008 - during the earlier foreign buying frenzy. Savills' analysis, which was based on URA Realis caveats data as of Nov 30, also showed that on the total foreign buying pool (PRs and non-PRs combined), Indonesians have been the top buyers since 2007.

Their share of the total number of caveats (including purchases by Singaporeans and companies) edged up from 15.4% in full-year 2010 to 16.4% during the Jan - Nov 2011. However, the 236 upmarket apartments/condos they have bought this year is about 35% shy of the 363 units they acquired in full-year 2010.

On the other hand, the number of upmarket apartments picked up by mainland Chinese has risen from 136 for full-year 2010 to 170 in Jan - Nov 2011. Their share of total buying also doubled from 5.8% to 11.8%.

A longer-term comparison reflects a similar picture. The number of high-end apartments bought by Indonesians has roughly halved from 438 in 2007 to 236 in Jan - Nov 2011, while the number of caveats lodged by mainland Chinese has quadrupled from 43 to 170.

Indians - who did not even feature among the top five nationalities of foreign buyers in 2007 - were the fourth largest foreign buyers of high-end apartments in Jan - Nov 2011, with 31 caveats or a 2.2% share of total purchases.

Credo Real Estate executive director Ong Teck Hui observed that traditionally Indonesians have been the predominant buyers of high-end apartments in Singapore. But recently, the Chinese and Indians have increased their presence in this segment, as wealth levels rise on the back of strong economic growth.

As well, property buying curbs in China are driving some mainland Chinese to park monies in Singapore, he added.

Over at Sentosa Cove (where foreigners don't need to be PRs to qualify to buy landed homes), the Chinese are the biggest foreign buyers (PRs and non-PRs combined) of bungalows. They purchased five of the total 20 bungalows transacted in Jan - Nov this year. Singaporeans bought eight bungalows.

As a whole, non-PR foreigners picked up seven bungalows in the upscale waterfront housing district in Jan - Nov 2011, giving them a 35% share of total purchases, up from their 33.3% share in full-year 2010.

Savills' analysis found that the average price of bungalows transacted in Sentosa Cove has risen 11.1% from $1,910psf of land area for full-year 2010 to $2,122psf for Jan - Nov 2011. In absolute dollar quantum, the average price per bungalow transaction has appreciated 7.7% from $17.1 million to $18.4 million. The total number of Sentosa Cove bungalows transacted has slipped from 54 last year to 20 in Jan - Nov 2011.

Steven Ming, executive director of Savills Prestige Homes, expects transaction activity in Singapore's high-end residential sector to remain subdued in the next few quarters against the backdrop of a turbulent global economy.

"But the market should continue to attract regional and global high net worth clientele interest, as they look for safe havens to store their wealth. Singapore is one of the two AAA-rated countries in Asia," he added.

Source: The Business Times

It is still not too late to learn Mandarin, or employ more Mandarin-speaking staff for that matter...

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China property prices cooling?

2011-12-04T22:21:00.000+08:00

Housing prices in 100 major cities in China dropped on a monthly basis for a third consecutive month in November and posted their biggest month-on-month decline this year, according to the privately compiled China Real Estate Index System (CREIS).

The decline provides further evidence that the government's two-year tightening campaign is cooling the property market amid signals it is now trying to slow the decline and its impact on the rest of the economy.

The data came after the People's Bank of China (PBOC) said on Wednesday it would cut banks' reserve-requirement ratio by half a percentage point to 21%, indicating Beijing has shifted its priority to supporting economic growth from combating inflation.

But the PBOC move is meant to ease the liquidity situation for the overall economy and is not aimed at the property sector, the official People's Daily reported yesterday, citing industry sources.

"It doesn't signal that property-tightening measures will be loosened and it will be difficult to change the declining property-price trend," the report said.

In theory, the reserve-ratio cut should help property developers to get development loans and home buyers to get mortgages, but with China's property tightening measures still in place, it remains to be seen whether banks will actually support these market participants, the newspaper said, citing Weiye Property Consulting assistant manager Hu Jinghui.

CREIS said yesterday a survey of property developers and real estate agencies showed the average home price last month was 8,832 yuan (S$1,781) a sq metre, down 0.3% from 8,856 yuan in October. The average November price was the lowest since May, when it was 8,819 yuan.

The CREIS survey, conducted monthly with online real-estate brokerage SouFun Holdings, has been watched widely since China scrapped a national property price index in January. It showed property prices in 57 cities declined last month from October, while prices in 43 cities rose. Average prices for new property last month climbed 4.06% on a year-on-year basis, a smaller increase than October's 5.21% gain.

"The price data provide a hint about upcoming data from developers reporting November sales, which are expected to be quite bad. The property price decline will continue as developers try to boost sales," said Shenyin Wanguo Research analyst Kris Li.

Chinese Premier Wen Jiabao and Vice-Premier Li Keqiang recently said that China would resolutely maintain property-tightening measures amid speculation that controls might be eased if a steep drop in housing prices hurt economic growth.

The government earlier this year implemented higher interest rates and limits on house purchases to curb speculation. The property price declines in some areas are putting pressure on developers and on local governments that depend on land sales for revenue.

Source: Dow Jones

For the benefit of our non-Chinese speaking readers, the sign board in the picture says "Home prices will not be (water) diving. It is just doing push-ups".
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THE EDGE: High-end condos in district 10 see buyer interest

2011-12-02T20:47:00.001+08:00

There have been some transactions in the high-end condominium segment in district 10.

In the Tanglin area is the 46-unit luxurious 8 Napier, located next to Gleneagles Hospital and Medical Centre and the Singapore Botanic Gardens. According to URA, as at end-October, 27 units in the luxury condo have been sold. The project was completed last year. The developer of 8 Napier is Hasetrale Holdings. In late 2007, 19 units were sold to private equity real estate investment fund MGPA's Asia Fund III at an average price of $3,550psf. The fund sold the units in July last year for an undisclosed price.

Last year, some units purchased for $3,550psf four years ago were sold on the secondary market at an average of $3,200psf. From last December to September this year, units sold in the low-rise development ranged from $3,000psf for second-floor units to $3,527psf for higher-floor units. Most recently, a 2,013sqft three-bedroom unit on the fifth level was sold for $6.5 million ($3,229psf). The buyer is said to be a Permanent Resident who is buying for her own use, says Nancy Hawkes of Jones Lang LaSalle, who brokered the sale.

There seems to be interest in old condos with spacious apartments. At the 274-unit freehold Tanglin Park condo developed by City Developments Ltd (CDL) 22 years ago, there were two transactions in the week of Nov 1 to 8, based on caveats downloaded from URA Realis as at Nov 23. A 1,593sqft three-bedroom apartment on the eighth level was sold for $3.2 million ($2,009psf). This is the fifth time the unit has changed hands in the last 16 years (URA's database of caveats go back only to January 1995).

One can trace the ups and downs of the property market from the transaction history of this unit. The very first recorded resale was in April 1995, when the unit was sold for $1.83 million ~~($1,146psf)~~ <1,149psf>. It changed hands three years later for ~~$1.53~~ <$1.23> million ($772psf), in December 1998, at the height of the Asian financial crisis. The unit was subsequently resold in January 2007 for $2 million ($1,255psf). The buyer sold the apartment six months later, at the peak of the last property boom, for $3 million ($1,883psf), enjoying a 50% gain in that short period of time.

The second transaction at Tanglin Park in the week of Nov 1 to 8 was for a 1,109sqft two-bedroom apartment that changed hands for $2.1 million ~~($1,858psf)~~ <$1,894psf>. The seller paid $1.15 million ($1,037psf) for the apartment in a resale in 1995, hence seeing an 83% gain in 16 years.

"Tanglin Park's main attraction is its location; being in a quiet and exclusive neighbourhood is definitely an advantage," says Andy Goh, a property agent and president of AG Prestige Home.

Another condo that is known for its luxurious and spacious apartments is the 330-unit Ardmore Park by Wheelock Properties that was completed 10 years ago. The development comprises three 30-storey towers and typical units are 2,885sqft four-bedroom apartments. There are four penthouses of 8,740sqft. A four-bedroom unit on the eighth floor of one of the towers changed hands recently for $9 million ($3,120psf). Based on caveats lodged, the seller had purchased it for $5.03 million ~~($1,742psf)~~ <$1,744psf> when the project was launched in July 1996, and hence saw a 79% capital appreciation. "Ardmore Park is a perennial favourite not only because of its spacious units but also its facilities and landscaping," says Goh. "The condo attracts a good mix of investors and occupiers, although these days, most of the buyers are looking to buy for their own occupation."

Source: THEEDGE SINGAPORE

THE EDGE should really double check their figures before they go to print...

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The Real Deals (1 December 2011)

2011-12-01T23:05:00.003+08:00

Here is the latest issue of (with its new yellow "Tiger" branding no less), which talks about mix-used land sites that are integrated with transport nodes.

It also provides some good data on two existing (older) integrated projects - Compass Heights and The Centris.

Click on below link to access the report:
http://www.scribd.com/fullscreen/74383487?access_key=key-iqhgvlgr17wkv8wickm.

The wife and I have tried posting the document in its embedded form but found that it slows the loading of our blog page to a crawl. We believe this is an incompatibility issue between Blogger and Scribd. If anyone of you from Blogger is reading this, please look into it. Thank you!

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New Project Info: Archipelago

2011-12-01T17:22:00.001+08:00

The 577-unit Archipelago @Bedok Reservoir, a project which boasts a combination of both condominium and strata houses, is expected to preview tomorrow.

The development will be launched in phases; the first phase will feature between 180 and 200 units.

The 99-year leasehold project, which is located on a 491,080sqft site, is expected to fetch an average price of between $1,000 and $1,100psf.

The five-bedroom strata houses are about 4,400sqft each and have an indicative price of above $3 million.

BT understands that a preview of Archipelago will be held for invited guests tomorrow, and for those who have registered interest with the marketing agents. The development is marketed by Knight Frank, DTZ, CBRE and Savills.

Condominium units include one-bedroom to five-bedroom units, and penthouses. One-bedroom units range from 527 to 667sqft, and are expected to fetch $600,000 onwards. Two- and three-bedroom units, which range from 829sqft to 1,894sqft, constitute approximately 63% of the units sold.

There are a total of 15 five-bedroom units, which are split into three stacks; they range between 2,411sqft and 2,648sqft.

There are 51 penthouse units, including 15 penthouse lofts, which feature two bedrooms and a study. The penthouse units range from 1,432sqft to 3,434sqft, and include variations with lofts, four bedroom, five bedroom, and five bedroom with study.

Source: The Business Times

What The Business Times failed to mention in its report is the developer for Archipelago - this development is a collaboration between the UOL Group and Singapore Land.

So we have another new project in Bedok Reservoir... as if the area is not congested enough.

Please support our Forum!

2011-12-01T13:11:00.000+08:00

Yes, we do have a Forum page - To access, just click on the "SG PropTalk Discussion Forum" link under "Pages".

The wife and I have set this up for any questions/comments that are not specific to our blog posting. And hopefully, the forum will also facilitate some interesting discussions amongst our readers.

So please check it out and say your piece!

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Three more GLS sites out for sale

2011-11-30T19:35:00.001+08:00

Three residential sites with the capacity to yield 1,830 new homes have been put on the market. Located in the Bartley, Kovan and Clementi neighbourhoods, these 99-year leasehold sites are part of the confirmed list of sites under the second half of this year's Government Land Sales programme.

They will add to the potential 14,945 units able to be built on sites that have been released for sale so far this year.

All three sites are close to MRT station, an attribute analysts say could attract between five to eight bids per site.

The largest of the trio has been tipped by analysts to draw strong developer interest. Located in Jalan Lempeng, the choice site is close to a network of amenities such as the new Clementi transport hub, Clementi Mall and established schools.

"There is strong demand for mass market housing in Clementi district as there is a limited new supply of apartments," said Mr Eugene Lim, ERA Realty's key executive officer.

With a site area of 2.4ha, the plot can be built up to 735,929sqft and potentially yield about 685 apartments. Its top bid is expected to hover around $540psf ppr with new homes selling within a range of $1,150 to $1,170psf. The tender will close on Jan 12.

The other big site is in Mount Vernon Road, off Bartley Road, and could possibly generate about 785 new homes. The land parcel has a site area of 2.1ha and a maximum gross floor area of 784,032sqft.

Mr Png Poh Soon, head of research at Knight Frank, expects the top bid for this site to be in the range of $610 to $630psf ppr, with an average selling price of about $1,200psf. Tender for the plot ends on Jan 10.

The last and smallest site is a 1.7ha plot at the junction of Kovan Road and Simon Road. A new development on the site could contain about 360 units.

Experts are predicting a top bid of between $550 and $560psf ppr, with the eventual new development selling at an average price of about $1,100psf. The tender for this site closes on Jan 18.

Source: The Straits Times

So... another 1,800 (at least) new apartments coming our way!

And for those of you who are wondering: 1 hectare (ha) = 107,639.104sqft

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October's SRPI rises: Positive sign ahead?

2011-11-29T14:50:00.000+08:00

The monthly Singapore Residential Price Index (SRPI) showed that prices of non-landed private homes climbed 0.9% in October 2011 – reversing a three-month trend of zero or negative growth.

The index, which is complied by National University of Singapore, tracks prices of completed projects. It showed that prices were flat in July, and then fell 0.2% in August and another 0.1% in September.

The index is now at a fresh high. Analysts said that October’s climb in the index was caused by resale home prices catching up to those fetched by new launches.

“In the last 3 – 4 months, we have seen zero or negative price growth for resale homes, but during the same period, new launches continued to be priced strongly,” said Ku Swee Yong, chief executive of International Property advisor. “Resale prices could now be catching up.”

Market sentiment also recovered somewhat in October, noted Knight Frank’s head of research and consultancy Png Poh Soon.

“We believe the increase (in October’s SRPI) could be a reflection of the improvement in market sentiment due to a broad-based recovery of the stock market, arising from possible positive developments in the European Debt Crisis. This could have led to some to believe that the debt deal struck in Europe could be a sustainable solution,” said Mr Png.

“Coincidentally, there was also positive news coming out from the US and China, which also encouraged home buyers who might be looking to capitalise on the still low interest rate environment to purchase properties.”

Yesterday’s flash estimate showed that the SRPI Small Index, which covers completed non-landed private homes island-wide of up to 506sqft, rose 0.9% in October after falling 3.5% in September. Analysts noted that the SRPI Small unit sub-index could be more volatile than the other indices as the sample size for the index is likely to be limited.

The estimates also showed that prices in both the “central” and “non-central” locations rose in October.

Prices of completed private apartments and condos (excluding small units) in the central region rose by 1%, while prices in the non-central region (excluding small units) rose 0.8%.

Looking ahead, Mr Ku said that resale prices could continue to trend upwards as new launches from developers set benchmark prices in certain locations.

And sellers could continue to up their asking prices because some units in new launches in the vicinity of their homes command benchmark prices, noted another market watcher.

Source: The Business Times

The wife and I certainly hope that the predictions are correct. But whatever good news regarding the European Debt Crisis and the US/China economies have slowly dissipated in recent weeks. And given the slower expected growth that our Government has already pre-empt about, as well as the gloomier predictions by several financial houses on the state of the Singapore private residential market going forward, we are keeping our fingers crossed that the October SRPI is not the calm before a major storm…

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Enbloc News: Olina Lodge back in the market again

2011-11-28T20:25:00.003+08:00

The freehold Olina Lodge will be up for tender once again, at an indicative price of $220 million or $1,544psf ppr, slightly lower than its previous asking price of $225 million or $1,666psf ppr.

The District 10 residential site, located a short distance away from Holland Village and popular schools such as Nanyang Primary School and ACS International, has a land area of 84,288sqft and a plot ratio of 1.6, translating to a maximum gross floor area of 134,862sqft.

According to sole marketing agent DTZ, no development charge is payable if the freehold site is redeveloped within its maximum plot ratio. Shaun Poh, DTZ head of investment advisory services and auction, noted that the investment quantum of the hilltop site is more likely to appeal to developers that are seeking “mid-sized residential development sites” in a popular residential district. Assuming the indicative price is met, owners stand to receive around $3 million to $ 4 million per unit.

The tender for Olina Lodge closes on Dec 13 and the freehold property can be built up to a maximum height of 12 storeys under Master Plan 2008. Olina Lodge is a four-storey walk-up residential development comprising 67 apartments and is about 20 years old.

Source: The Business Times

The wife and I did a quick check of our previous postings and found that Olina Lodge first put their development up for collective sale back in June 2011. We understand the tender ended with no bid – and that was before the whole EU debacle started to unfold.

So we reckon a $5 million dollar reduction in asking price now is not going to cut it. But we shall see...

Click below to read our previous posting on the Olina Lodge en-bloc:
http://sgproptalk.blogspot.com/2011/06/enbloc-news-olina-lodge.html
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Mainland Chinese is largest foreign homebuyers in Q3 2011

2011-11-26T12:25:00.001+08:00

Buyers from mainland China continued to snap up private homes in Singapore 's east in the third quarter, pushing up their share of deals, according to a new report from DTZ.

The property firm, which analysed caveats lodged for both new and secondary sales, also found that foreigners bought 18.6% of all private homes that were sold in Q3 - a new high. Foreigners (excluding Singapore PRs) accounted for 16% of all private home sales in Q1 and Q2.

Buyers from mainland China were the biggest group of non-Singaporean (that is, foreigner and Singapore PR) purchasers. They accounted for 30.6% of all private home transactions in Q3, up from 26% in Q1 and Q2.

"Mainland Chinese buyers are increasingly looking to buy properties overseas, including in Singapore, as a result of property cooling measures in China which have led to residential property prices falling in some cities," said DTZ's South-east Asia research head Chua Chor Hoon.

"The predominantly Chinese population, good infrastructure and education system, and the safe and clean environment here make Singapore property an attractive investment option for mainland Chinese investors to park their money or buy a home for their children studying here."

Private homes in the east were most popular with Chinese buyers. Their purchases in teh first nine months in District 15 (Katong, Joo Chiat and Amber Road areas) and 16 (Bedok and Upper East Coast areas) totalled 419 units and made up 21.7% of their total purchases.

Standard Chartered analysts Regina Lim similarly noted in a new report this week that foreigners bought 28% of all mass-market homes (that is, homes that sell for less than $1 million) in the first nine months of this year - higher than the 19% in 2009 and 22% in 2010.

"With volumes and prices staying buoyant despite the weakening economic environment and repeated initiatives by the government to dampen the market this year, we will not be surprised if new measures directed at foreigners are introduced by the government, which in turn could negatively affect home prices, Ms Lim said.

Foreigners' share of all homes bought rose even as overall transaction volume fell.

According to DTZ, transactions of private homes fell to 6,879 units in Q3 2011 - some 24.5% lower than the 9,107 transactions recorded in the previous quarter. The figure was also lower than the average of 8,003 and 9,167 units per quarter in 2009 and 2010 respectively.

DTZ, which downloaded the caveats from URA Realis on Nov 15, also found a larger proportion of buyers with public housing addresses buying private homes with sizes below 1,000sqft, as the overall quantum for such homes is lower and hence attractive to HDB upgraders.

Source: The Business Times

Standard Chartered: Mass market prices could fall by 30% over next 3 years!

2011-11-25T21:37:00.000+08:00

Private home prices in the mass market could fall by up to 30% over the next three years as supply ramps up amid falling demand, according to a new report.

Standard Chartered analysts see demand being hit by the stuttering economy and slower population growth in the wake of tighter immigration rules.

Population growth will shrink to between 1.5 and 2% for the next three to five years, they noted, while economic expansion is set to slow 3 to 4%, from an average of 6.1% over the past five years.

But housing supply will go the opposite way with the number of mass market units expected to rise by 3.1% next year and 5.4% in 2013.

"We expect lower population growth and high completions to induce a 20 to 30% decline in home prices from 2012 to 2014," the report said.

Source: The Straits Times

Is it just us or have market sentiments gone from cautiously optimistic to increasingly pessimistic in recent days? Reports from two separate sources within a span of one week certainly seems to suggest so....

http://sgproptalk.blogspot.com/2011/11/pure-pessimism.html

Developer Focus: Lian Beng Group

2011-11-25T06:22:00.000+08:00

According to this article from Kim Eng Research, both Spottiswoode Residences and Spottiswoode 18 are 90% and 96% sold respectively as of October 2011.

And by the way, Kim Eng has maintained a BUY on Lian Beng's stocks...

Click on below to read the article:
http://www.scribd.com/fullscreen/73694424?access_key=key-mbthwtetqem7n9m86n0

Bedok Residences: Over 350 units sold on the first day!

2011-11-24T12:30:00.001+08:00

The wife and I wonder if this puts to rest the notion that people are deliberately employed to queue at this project to create a perception of strong demand... since there is really a strong demand?

Project Spotlight: Kerrisdale

2011-11-23T14:43:00.002+08:00

Surrounded by a mix of low-rise, pre-war shophouses along Petain Road and Beatty Road, off the main Serangoon Road, is the 481-unit Kerrisdale condominium by Allgreen Properties. Completed in 2005, the 99-year leasehold Kerrisdale, comprising three 30-storey towers, was the first of three significant high-rise condos that have transformed the demographic landscape of the once-aging neighbourhood. The other large condos are the 910-unit freehold City Square Residences (completed in 2009), adjacent to the City Square Mall and the Farrer Park MRT station; as well as the 600-unit, 99-year leasehold Citylights condo (completed in 2006), adjacent to the Lavender MRT station.

Next door to Kerrisdale is a vacant lot that URA has zoned for the development of a 390-room hotel. The 99-year leasehold site is on the reserve list and waiting to be triggered. Another hotel site nearby is also on the reserve list and can yield 375 rooms.

What is attracting both owner-occupiers and investors to the area is its accessibility, with the opening of the new MRT stations, as well as amenities such as the City Square Mall, which is equivalent in size to Ngee Ann City shopping mall, and Mustafa Centre. The area is also popular with those who like the vibrant Little India and Kampong Glam neighbourhoods, with their conservation shophouses and retail-and-F&B mix, which are also a tourist draw, say property agents.

Another upcoming facility that investors are most interested in is the $800-million medical complex called Connexion, which will house the Farrer Park Medical Centre, with 189 clinics, a 220-bed Farrer Park Hospital, a 230-room hotel called One Farrer Hotel, as well as a retail and commercial podium called Owen Link. The project is expected to be completed in 2013, after a nine-month delay.

“Prices at Kerrisdale went up quite a bit when City Square Mall opened, and we’re likely to see another round of price escalations when the upcoming medical hub opens,” says Hans Chee, an associate director and realtor with L.Square Properties.

There has been a notable increase in the number of transactions at Kerrisdale in recent months. Three units changed hands over the week of Oct 19 to 24, based on the latest caveats lodged the week of Oct 18 to 25 and downloaded from URA Realis on Nov 9.

One was a three-bedroom, 1,259sqft unit on the 24th floor, which was sold for $1.37 million ($1,088psf), the third time it has changed hands so far. The original owner purchased it from the resale market in February 2007 for $661,000 ($525psf) and sold it three years later, in May 2010, for $1.07 million ($850psf), making a 62% gain. The previous owner, in turn, enjoyed a 28% price appreciation when he sold it recently for $1,088psf.

On the 22nd level of the same block, a 1,270sqft, three-bedroom apartment changed hands for $1.34 million ($1,055psf). The owner had purchased it from the developer in March 2006 for $668,000 ($526psf) and sold it last month for $1,055psf, double the amount he initially paid.

Meanwhile, at a neighbouring block within the development, a 1,270sqft, three-bedroom apartment on the 26th floor was sold at the end of last month for $1.32 million ($1,039psf).

According to URA statistics, over the last two years, home prices on the city fringes, or Rest of Central Region, have increased at a faster pace than those in the prime districts (Core Central Region) or the suburbs (Outside Central Region). For instance, from 3Q2009 to 3Q2011, based on the URA price indices, prices of non-landed properties (apartments and condos) on the city fringes have jumped 34.5%, compared with 26.8% in the prime districts and 31% in the suburbs.

According to listings on property websites such as propertyguru.com and iproperty.com, owners are asking for $1,050 to about $1,250psf. Despite having risen in the last two years, these prices are still considered “good bargains” by potential buyers, adds Chee.

Source: THEEDGE SINGAPORE

Thinking about investing in Kuala Lumpur?

2011-11-22T20:36:00.002+08:00

Bedok Residences: What the fuss...?!

2011-11-22T10:37:00.004+08:00

We said yesterday that Bedok Residences is going to be a sell-out judging by the long queues forming even before the project's launch date. But we may be wrong...

Source: The Straits Times

New holiday job for students: "Queuer" at project launch

2011-11-21T21:57:00.002+08:00

Units at a new property launch go on sale on Wednesday and already some 500 people are in the queue.

And about 100 of them are students.
Most of the students said they are helping family or friends queue for a spot in Bedok Residences, a development coming up at Bedok New Town.

Interested buyers must get a queue number, and the students said they are being paid about $10 an hour to do the job.

Residents in the area said some of them have been there since 10:00 pm on Sunday.

Bedok Residences will have 583 units and is part of a 15-storey integrated development consisting of residential units, a shopping mall and a transportation hub.

The development is by CapitaLand Residential Singapore and CapitaMalls Asia.

Source: Channel News Asia

So it looks like there is little doubt that Bedok Residences will be a sell-out. The question is just... at how much per sqft.

The Marq sets another record high!

2011-11-21T19:13:00.006+08:00

$6,850psf... The wife and I cannot even begin to phantom the notion of paying that kind of money for an apartment (not that we have that kind of money in the first place), even if the development comes with club library/lounge where they serve drinks, concierge service and furnishings by Hermes.

Source: The Business Times

Wondering why there are so many foreign buyers of local properties?

2011-11-21T11:12:00.002+08:00

The Real Deals (17 November 2011)

2011-11-20T11:24:00.002+08:00

The latest issue of focuses on the recent happenings in the Executive Condominium (EC) sector.

http://www.scribd.com/fullscreen/73240116?access_key=key-2belmdhtwui118ayqx1a

For those of you looking to buy an EC, you are likely to be spoilt for choice as the Government looks to roll out more of such projects next year. And compared to current price of public housing under the Design, Build and Sell Scheme at around $600psf - Trivelis, the latest DBSS launch in Clementi, were sold at about $580 psf to $728 psf - the wife and I reckon that EC is definitely better value for money. Despite having to pay about $100 - $150psf more in price, the later comes with facilities and can be privatised after 10 years.

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Bad news not just for housing agents, but banks too...

2011-11-19T18:17:00.001+08:00

Source: The Business Times

Pure pessimism?

2011-11-19T17:44:00.006+08:00

Or does Daiwa really know something that others do not...?

Source: The Business Times

Enbloc News: Dragon Mansion sold for $130 million

2011-11-18T12:07:00.001+08:00

A developer has been awarded the Dragon Mansion site at a knock-down price, making it one of the few collective sale bids to have found a buyer this year.

A joint venture between Lian Beng Group and Centurion Properties offered $130 million for the Spottiswoode Park Road site, lower than the indicative price of between $132 million and $142 million.

In May, Dragon Mansion was asking even more: between $150 million and $156 million.

The $130 million price translates to a land cost of $1,093psf ppr, including a 10% bonus gross floor area for balconies. No development charge is payable.

The sale of the property will leave owners of the building’s 68 units (about 1,324sqft each) richer by $1.91 million each. This is according to Jones Lang La-Salle, which brokered Dragon Mansion’s collective sale.

Dragon Mansion is a freehold 18-storey development zoned for residential use. The 38,618sqft site at 14 Spottiswoode Park Road has a plot ratio (ratio of maximum gross floor area to land area) of 2.8, which will allow the future development to be built up to 36 storeys.

Dragon Mansion was sold through a tender exercise which closed on Wednesday. The tender drew a handful of bids, said JLL national director and head of investments Stella Hoh.

The sale is subject to approval from Strata Titles Board.

This is the second block of Dragon Mansion to be sold. The first block next door was sold earlier to Roxy-Pacific Holdings in December 2009 for $863psf ppr. Roxy is now developing the site into Spottiswoode 18.

UOL Group paid $732psf ppr and $740psf ppr for the nearby Spottiswoode Apartment and Oakswoode Heights sites respectively in 2007 – which it is developing into Spottiswoode Residences condo.

The biggest collective sale so far this year was the sale of the mixed-use Hong Leong Garden Shopping Centre.

The development in the West Coast neighbourhood was bought by an Oxley Holdings-led consortium for $171 million in September.

Source: The Straits Times/The Business Times

As per always, it is good news that travel (in this case, being released) fast. If only marketing agents handling collective sales are as forthcoming on the status of, say, Pine Grove...

Have a good weekend everyone!

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North-South divide, Singapore style?

2011-11-17T17:29:00.001+08:00

Property prices and rents of some Novena and Thomson properties along the construction route of the North-South Expressway (NSE) could be hurt by the project, but only during construction, say analysts.

On Tuesday, the Government announced that 21 private properties will have part of their land acquired to develop the 21.5km expressway. Aside from this, dozens more homes will be hit by noise, dust pollution and traffic diversions that typically plague large-scale projects.

These may deter prospective buyers and could lead to a 3% to 5% drop in property values, said some analysts. The impact would depend on the property’s location and whether the nearby portion of the expressway is above or below ground.

The construction could also derail an attempt by owners at Novena Ville to mount a collective sale.

Credo Real Estate, marketing agent for the sale, said less than 1% of the development’s land area is being acquired by the authorities and that this will not lessen the plot’s redevelopment potential.

However, industry watchers point out that developers are wary of buying this type of site as they do not like to launch a new project in the thick of construction chaos or at lower prices.

Newer projects will not be spared either. City Developments’ (CDL) Cube 8 project will have 89.6sqm shaved from its total land area while another 239.1sqm will be taken from its 368 Thomson project.

Responding to queries from The Straits Times, a CDL spokesman said it is too early to determine exactly how owners will be compensated for the loss of the common space, but more details will be released soon.

He added that the group does not anticipate any significant impact on the projects’ construction process. Both are slated to receive their temporary occupancy permit (TOP) in 2014, a year before major construction of the expressway begins.

While well-built homes can command higher prices after they have received their TOP, the expressway’s construction means that owners wishing to sell will have to adjust their pricing expectations, said Dennis Wee Group director Chris Koh.

Profits can still be made, but the inconvenience from the building works needs to be factored into the selling price, he said.

Resale properties may also be affected. Mr Ku Swee Yong, chief executive of International Property Advisor, believes properties along the construction route in Novena and Thomson area could under-perform the overall private housing market by perhaps 10%.

Rents will be hit as well, with potential tenants expected to shy away from homes located close to construction sites.

“In the case of Farrer Road, when road work was being done for the Circle Line, the entrances of development like Spanish Village and Gallop Gables were a mess. It creates a bad impression of the place even before the potential tenant has seen the room or the unit,” said Mr Ku.

More clarity will be needed before any firm forecasts on prices or rents can be made, said some market observers, with others already predicting that prices of properties along the expressway could jump after its completion as owners market it as an attractive feature of their properties.

Source: The Straits Times

So moral of the story is: People want the convenience of (and the possible capital appreciation of their estates that is associated with) an expressway being near their homes only if it miraculously appear out of thin air, i.e. do not inconvenient us with the construction phase please!

And for the folks who bought units at Cube 8 and 368 Thomson, there is good reason to feel aggravated by the "enforced shrinkage" of their estates even before the developments are completed. However, they probably shouldn't complain too much about the anticipated noise and dust pollution arising from the NSE construction...

More on the October private home sales data

2011-11-16T11:11:00.005+08:00

Source: The Business Times

Breaking News: Fall in the number of private homes sold in October

2011-11-15T14:33:00.002+08:00

The number of private homes sold in October went down by 14.9%.

Latest figures from the Urban Redevelopment Authority showed 1,387 private units were sold in October. That's 244 units lower than the month before.

In September, 1,631 units were sold.

Source: Channel News Asia