Parc Seabreeze

Preview by appointment...

Address: 532 Joo Chiat Road
Tenure: Freehold
Expected Completion: Mar 2012
Site Area: 58,750 sqft
Description: 20 storey in one tower block
Total Units: 94

Unit Types:
3 bedrooms ~ 1314-1398 sqft
4 bedrooms ~ 1625-1647 sqft
3+1 penthouse ~ 2347 sqft
4+1 penthouse ~ 3004 sqft

Facilities: Basement Carpark (103 lots), Landscape Deck, Sky Terrace, Children Play Area, Lap Pools, Social Pool, Children Pool, Spa Pool, Dining Pavilion, BBQ Pits, Gymnasium, Aqua Gym, Sauna and Steam Room

Location:

• Excellent transportation linkages like PIE, ECP (10-15 mins to CDB, Marina Bay Integrated Resort, Suntec Shopping belt, Raffles City, Changi Airport)
• Easy access to abundant of amenities, i.e. supermarts, wet markets, banks, food centres
• Close proximity to excellent schools like CHIJ (Katong) Primary, Tanjong Katong Primary, Chatsworth Intl Sch, Victoria Jr College, Ngee Ann Pri School, St Patrick School
• Excellent recreational facilities (East Coast Park, Chinese Swimming Club, Parkland Golf Driving range, Marina Bay Driving Rang & Golf Course)

Email lushhome@gmail.com for more information or appointment.

On the market

In this new weekly column, we bring you a sampling of properties up for sale around the island. In the spotlight this week and next: New project launches.

Whitley Villas
freehold
115 Whitley Road
Units: Six semi-detached houses and two cluster bungalows

Prices: $3.5 million for a semi-detached house, $4.5 million for each bungalow

Launch date: Yesterday

Developed by the Fortune Group, this series of two-storey houses, with attics, is located in an established residential area near the Catholic Junior College.

The semi-detached units range in size from 2,895 sq ft to 3,024 sq ft.

Also on offer are two cluster bungalows - one 4,219 sq ft and the other, 4,316 sq ft, in size.

Huit Terraces
999-year leasehold
6-10 Meng Suan Road

Units: Eight terraces

Prices: $2.3 million for corner units and $1.75 million for intermediate ones

Launch date: Yesterday

The main draw of these three-storey terrace houses is a private infinity pool on the second floor of each unit.

The corner houses each have a land area of up to 3,162 sq ft, with a built-up area of up to 5,134 sq ft.

The intermediate units each have a land area of 1,957 sq ft and a built-up area of 3,912 sq ft.

East Coast Residences
freehold
412 Upper East Coast Road

Units: 59

Prices: From $994 per sq ft (psf), averaging $1,125 psf. Monthly maintenance estimated at $225 to $360

Expected launch date: April/May, but previews are ongoing now

This project, near the Lucky Heights area, offers mainly smaller units, starting at 517 sq ft for a one-bedroom unit with a study and going up to 1,238 sq ft for the three-bedroom units.

There are also 10 penthouses, from 1,378 sq ft to 1,679 sq ft in size. Floors are marble in the living and dining areas and timber in the bedrooms. Wardrobes, kitchen cabinets and ovens are provided.

Ventura View
freehold
16 Rambutan Road, off Joo Chiat Place

Units: 24

Prices: $800 to $950 psf

Launch date: This week

Located near several well-known eateries, Ventura View offers a wide range of units, from studios starting at 397 sq ft in size to a four-bedroom penthouse that spans 2,286 sq ft.

The project, by construction firm DJ Builders, comes with a swimming pool, a gym and barbecue areas.

Source : Sunday Times - 6 Apr 2008

Email lushhome@gmail.com for more information.

Parc Centennial

Location: 100 Kampong Java Road (District 11)
Tenure: Freehold
Expected Completion: Dec 2011
Total Units: 51 units in a single 19 storey residential block
Unit Types:
1+study ~ 1345sqft
2 bedroom ~ 1098-1163sqft
2+study ~ 1249sqft
3 bedroom ~ 1550-1572sqft
Penthouse ~ 2486sqft (3 br) & 2885sqft (4 br)









Preview soon. Email lushhome@gmail.com for information or special invitation.

New home sales slump to 9-month low in Feb

URA sees slowest sale of 170 units since start of its data releases in June ‘07.

The number of new homes sold by developers dropped to just 170 units in February - the lowest since the Urban Redevelopment Authority (URA) began releasing monthly sales data in June 2007.

And CB Richard Ellis executive director Li Hiaw Ho estimates that new home sales could be just 700-800 units for the first quarter of 2008 - even lower than the 894 units sold in the fourth quarter during the Asian financial crisis in 1997.

In an analysis of the data released yesterday, Jones Lang aaLaSalle (JLL) said, however, that prices were comparatively stable.

The firm’s head of research (South-east Asia) Chua Yang Liang said that using the ‘lowest median prices’ category of the URA data, median prices declined 0.7 per cent for units sold in the Core Central Region (CCR) and 5 per cent in the Outside Central Region (OCR) on a month-on-month basis.

For units sold in the Rest of Central Region (RCR), the lowest median price increased 14.2 per cent from $765 psf in January to $874 psf in February.

Colliers International said 107 units were launched in the RCR and 64 were taken up. In the CCR, 31 units were launched and 35 were sold, while in the OCR, 205 were launched and 71 were sold.

Colliers International director of research and consultancy Tay Huey Ying pointed out that although the units launched in the RCR accounted for 60 per cent of all new units launched in February, the number of units sold in the OCR accounted for a much smaller 42 per cent of all purchases.

On the other hand, while the number of new units launched in the CCR accounted for only 9 per cent of all units, sales accounted for a much larger 21 per cent of all units sold.

‘On a deeper analysis, it is estimated that the sales take-up of new units launched in the month of February was strongest for CCR and weakest for OCR,’ Ms Tay said.

She also noted that sales of new units launched in the CCR improved from an estimated 53 per cent in January to 58 per cent in February, while sales in the OCR are estimated to have declined significantly from 49 per cent in January to just 22 per cent in February.

‘This could indicate the resilience of demand for high-end and luxury properties even in the wake of global economic and financial sector uncertainty,’ she said.

Another concern could be the increasing number of new homes ready for sale that have not been launched. At end-December 2007 there were 4,000 such units. But the number has since swelled to more than 6,500 units from 92 unlaunched projects.

Ms Tay said that assuming the US recession is ‘mild and short-lived’, market activity could pick up towards the end of 2008 or early 2009. ‘Based on this scenario, developers may launch a total of some 6,500 to 7,500 units in 2008,’ she said.

However, if the US falls into a prolonged recession, she reckons 5,000 to 5,500 units could be launched, with the mass-market likely to continue to dominate new launches.

With developer sales falling, the secondary market appears to be taking up some of the slack.

According to a DTZ Debenham Tie Leung report, the volume of developer sales of non-landed freehold and leasehold homes fell a sharp 60 and 74 per cent respectively in Q4 2007 quarter-on-quarter. However, secondary market freehold and leasehold transactions fell 47 and 43 per cent respectively for the same period.

Foreigners bolstered sales figures. URA said that they accounted for 31 per cent of all non-landed secondary market transactions in 2007.

Source : Business Times - 18 Mar 2008

New home sales nosedive in Feb

Only 185 out of 343 units sold, down from 328 in January, but prices are holding steady.

SALES of new homes slowed almost to a standstill last month, delivering another blow to the already-weak housing market here.

Property developers yesterday said they sold only 185 new units in February, about half of the 343 they launched in the month and well down from the 328 sold in January.

This anaemic performance, coupled with the continuing quietness of the market this month, prompted some experts to predict that new home sales this quarter could hit one of the lowest levels ever seen here.

‘The current weak market sentiment is likely to stay, which means that the total number of new homes sold in the quarter may be 700 to 800 units,’ said Mr Li Hiaw Ho, executive director of CB Richard Ellis Research.

He said this could be worse than during the Asian financial crisis, when just 894 new units were sold in 1997’s last quarter. Only Sars in 2003 saw fewer new homes sold: 427.

In contrast, developers sold 14,811 new homes in the exuberant boom last year, or an average of 3,700 homes each quarter.

Property consultants say they were not surprised by last month’s feeble numbers, given the Chinese New Year holiday and the snowballing global financial crisis originating from the United States.

But even as some admitted the contraction was ‘worse than expected’, they stressed the silver lining: home prices are still holding steady.

At Hong Leong Holdings’ Aalto in Jalan Kechil, two units were sold for a median price of $2,619 per sq ft (psf), up from the median $2,078 psf fetched by three units in January.

‘There are strong fundamentals to support home prices,’ said Mr Chua Yang Liang, Jones Lang LaSalle’s head of South-east Asia research.

‘En bloc sellers have to look for housing and they are cash-rich. We still believe in the ‘remaking Singapore’ story and with more foreigners coming in, property prices are likely to hold in the coming months.’

But market confidence will ‘remain shaky’ until the extent of the US recession can be measured, said Ms Tay Huey Ying, director of research and consultancy at Colliers International. She expects market activity to remain lacklustre until June.

At some projects, prices have started to dip slightly. At Ritz-Carlton Residences in Cairnhill, only one unit was sold last month at $4,140 psf. None was sold in January, but five were taken up in December for between $5,053 and $5,146 psf.

The best performer last month was the Cosmo condominium in Guillemard Crescent, where 41 out of 45 units were sold, mostly within the first week of its launch, for between $1,048 psf and $1,152 psf.

Source : Straits Times - 18 Mar 2008

The Hamilton: Upcoming condo equipped with garage in the sky

PARKING the car is set to reach a whole new level - with a high-rise condominium where every apartment comes with its own private garage in the sky.

The Hamilton, coming up at 37 Scotts Road on the former site of Hotel Asia, will make this fantasy come true.

Residents of the 30-storey tower will be able to drive their vehicle into a special glass elevator that will lift the vehicle from the ground floor to their 'porch' on the same level as their living rooms.

The 56-unit development has not been launched yet. But when built, it will become the first residential high-rise in Singapore, and only the third in the world after developments in New York and Dubai, to have this vroom-with-a-view parking feature.

Ms Leny Suparman, director of developer Hayden Properties, said the feature offers 'a unique way of living in a condominium yet with the advantages of a landed property'.

Motorists here have already become familiar with high-tech 'stack' parking, though it is not quite the seamless elevator ride The Hamilton promises.

At the Chinatown nightlife hub Club Street, the first fully mechanised public carpark was launched last month.

And MacDonald House in Orchard Road has had an elevator take vehicles to its carpark on the second and third levels after its refurbishment in June 2005.

Owning a unit at The Hamilton, complete with its own private parking bay, will not come cheap.

Hayden Properties is unable to give any price indication for its units - averaging 3,000 sq ft in size.

But according to the Urban Redevelopment Authority's website, apartments in the vicinity have been going for around $4,000 per sq ft.

At The Hamilton, that could work out to about $12 million a unit.

In land-scarce Singapore, mechanised parking systems may seem the way to go, taking up less space than conventional parking lots.

Source : Sunday Times - 16 Mar 2008

No major property launches expected in the next 3 months

Kuwaiti pullout from $818m deal, low top bid for Jurong West site unnerve market

MAJOR residential property launches are unlikely for at least three months after the already nervous market was spooked by two sobering events this week, market analysts said.

The first was the pullout of a Kuwaiti investor, Kuwait Finance House, from an option to buy $818 million worth of 97 units at Goodwood Residence.

The second was when the top bid by a property developer for a Jurong West landed housing site came in at less than half what had been expected.

Market sentiment was already jumpy given general market uncertainty, in the wake of the United States sub-prime crisis.

Developers were already saying they are prepared to delay their launches. Property consultants now do not expect any major condominium launches in the next three months. Some developers could even postpone their launches indefinitely, they said.

Still, prices are generally holding steady for now and smaller players will still launch small projects in the months ahead.

Industry sources speculated that Kuwait Finance House had pulled out as it had bought the units at a very high price that could not be supported by the current market.

As for the Jurong West site, sources said the low bid of $78 per sq ft of land area reflected rising building costs and current sentiment. If the Government awards the tender, sale prices of below $1 million per unit will fit in well with upgraders' expectations and needs, they say.

An industry source said: 'The Kuwaiti pullout is bad news but it's not as if things have suddenly changed drastically.' The fundamentals in Singapore are intact but sentiment has deteriorated, he said.

'There are people who have money to buy but they just want to wait and see.' With buyers and sellers largely waiting on the sidelines, there is little action.

Developers prefer to err on the side of caution and even if they offer homes for sale, they are doing it quietly, sources said.

Indeed, so far this year, the 405-unit Waterfront Waves in Bedok Reservoir has been the only new major condo launch. A few blocks have been launched and 110 units have been sold.

Small, quiet releases include the 47-unit Cosmo in Guillemard Crescent and some projects in Telok Kurau. Despite the sluggish market, some of these small projects such as Cosmo and Suites@Owen in Owen Road have sold well.

A consultant said: 'There are foreign funds and investors still in the market that are on the lookout for bulk condo purchases.'

Among high-end properties, a fund recently agreed to buy - at a discount - the remaining units at Grange Infinite, sources said. The 68-unit freehold condo in Grange Road has more than 40 units left.

There is no lack of high-end condo projects - with quite a few ready or nearly set for launch.

These include Far East Organization's Silversea in Amber Road, UOL Group's Breeze by the East in Upper East Coast Road, and City Development's condo project in Thomson Road.

But financially strong developers are likely to delay launches to the second half, said a consultant.

While the bigger players may not act soon, Evan Lim & Co's EL Development is preparing to launch its 51-unit Parc Centennial in Kampong Java Road soon.

'Not everyone can hold back their launches for a long time,' said another consultant. 'But nobody is ready to lower their prices yet.'

He added: 'There's the possibility of prices falling but I haven't seen people panicking.'

In the short term, prices are likely to remain flat.

'It is good for the property market to have a sustainable and affordable price level for the mass market,' said a property developer. He added that demand as well as unprecedentedly high construction costs were problems

STILL STRONG

'The Kuwaiti pullout is bad news but it's not as if things have suddenly changed drastically.' - AN INDUSTRY SOURCE, who adds that the fundamentals are intact

STILL WAITING

'Not everyone can hold back their launches for a long time. But nobody is ready to lower their prices yet.' - A CONSULTANT

Source : Straits Times - 13 Mar 2008

CDL boss prepared to delay launches in subdued market

Some projects can be held off till 2009, he says, as full-year gain swells to $725m

THE property market may have stalled for now, but City Developments (CDL) executive chairman Kwek Leng Beng is not too worried.

He said that if necessary, he can hold off launches of new developments until next year.

‘Rather than launch today when the market is subdued, I would rather start construction on some projects first’ and launch them when demand picks up, Mr Kwek said yesterday.

‘If today there are not many buyers, this means that pent-up demand is building up, which can be very powerful.’

CDL plans to launch more than 400 units in four projects by June, assuming market conditions do not worsen.

It will release the 77 units at Shelford Suites in Bukit Timah, which is said to have been ready for launch for some time.

The group also intends to launch 100 units of the 228-unit Quayside Isle @ Sentosa Cove, and another 100 at a new development on the former Lock Cho Apartments in Thomson Road, which will have 336 units.

The fourth project is a joint venture at Pasir Ris Drive 1. About 150 of its 724 units are targeted for release by June.

Even if the launches end up delayed, CDL may first start construction on Shelford Suites and the Thomson Road project, said Mr Kwek.

This could also bring in more upfront cash for the group when it does sell the homes. Buyers have to pay 30 per cent in cash after foundation work is done, compared with only 20 per cent if no construction has started.

Mr Kwek’s comments yesterday came on the back of a sterling year for CDL last year.

The developer, Singapore’s second-largest, said full-year net profit more than doubled to a record $725 million. Revenue rose 22 per cent to $3.11 billion.

Earnings per share more than doubled to 78.3 cents for the year. Net asset value per share rose to $5.72 as at Dec 31, from $5.21 a year ago.

Last year, CDL booked profits from projects such as St Regis Residences, Tribeca and The Sail @ Marina Bay.

But it has yet to recognise any profits from One Shenton, The Solitaire, Cliveden at Grange and Wilkie Studio - which account for about $1.7 billion of sales. In all, the group sold 1,655 homes last year for a record $3.4 billion.

CDL’s hotel and office properties are also enjoying high occupancy rates in the buoyant market. Its offices are almost 96 per cent occupied, compared with a market average of 92 per cent.

The group has also not adopted the same approach to revaluing its properties as some of its competitors, which have reported huge revaluation gains. With these gains, its profit would have surged to $2.8 billion, it said.

The group is recommending a final cash dividend, tax-exempt, of 20 cents a share in total.

LATENT DEMAND

‘If today there are not many buyers, this means that pent-up demand is building up, which can be very powerful.’

MR KWEK, on why he would rather begin construction on some projects, and launch them later on when demand picked up.

Source : Straits Times - 29 Feb 2008

Martin Place Residences

Location: Martin Place (District 9)
Tenure: Freehold
Expected Completion: Dec 2011
Total Units: 302 in two 33-storey residential towers

Unit Types:
1 bedroom ~ 592-646 sqft
2 bedroom ~ 1044-1163 sqft
3 bedroom ~ 1421 sqft
3 + study ~ 1722 sqft
4 bedroom ~ 1894-2002 sqft
Penthouse ~ 3326, 3380, 3434 sqft

Facilities:
Swimming Pool (Olympic-size 50m x 25m; 8 lanes)
Children's Pool
Clubhouse with Function Room, Gymnasium and Changing Rooms
Children's Play Area
Play Pavilion with Lawn
Tennis Court
Spa Pools (2 spa pavilions, and 2 spa pavilions with BBQ facilities)
Pool Deck
Grand Pavilion with Kitchen, Barbeque Facility (2 nos.) and Lawn
Sky Terrace at 14th Storey
Reading Lounge
Yoga Corner
Sky Lounge
Water Garden

Expected Price: from $1900psf

Email lushhome@gmail.com for preview invitation.

Wheelock may not launch Orchard View this year

WHEELOCK Properties (Singapore) is likely to hold off launching Orchard View at Angullia Park for sale until next year, when the project is slated for completion. The company had earlier indicated that the development would be launched some time this year.

The group, which yesterday posted a six-fold jump in group net profit for the quarter ended Dec 31, 2007, to $217.5 million, also said it expects to launch Ardmore 3 next year. Piling work for the project is in progress and the development is slated for completion in 2012.

For Orchard View, the main construction work is already in progress and the development is scheduled for completion next year.

For the quarter ended Dec 31, 2007, Wheelock's revenue from continuing operations rose 43.8 per cent to $189.3 million. Wheelock's strong topline and bottomline were mainly due to the start of revenue and profit recognition for units sold in Ardmore II condo. The bottomline also received a boost from a $200 million revaluation surplus on Wheelock Place, the group's retail-and-office investment property on Orchard Road.

Wheelock, which has changed its financial year-end from March 31 to Dec 31, said that for the current year it will book the remaining profits from The Sea View condo in the Amber Road area and The Cosmopolitan at the River Valley/Kim Seng Road corner, which are slated for completion in first-half 2008 and mid-2008 respectively.

It will also continue to book profits from Ardmore II based on the progress of construction work and expects to book maiden profits on Scotts Square, a 338-unit apartment development which is already 67 per cent sold at an average price of $3,988 psf. 'Sales of the remaining units are ongoing and we expect to sell progressively over the next two years,' the group said.

Wheelock Place is also expected to continue maintaining full occupancy in the current strong market conditions and 'prospects for improved rental rates are good for both office and retail space'.

'The group remains in a strong financial position to take advantage of opportunities which may arise,' Wheelock said.

As at Dec 31, 2007, the group had total liabilities of $749.5 million and total equity of $2.18 billion. It had cash and cash equivalents of $557.7 million as at the same date. Shareholders will receive a 6-cent per share (one-tier) first and final dividend for the period ended Dec 31, 2007.

With the change in its financial year, the group reported net earnings of $273.5 million for the nine months ended Dec 31, 2007, against net profit of $297.9 million for the 12 months ended March 31, 2007.

Wheelock's net asset value per share stood at $1.82 as at Dec 31, up from $1.69 as at March 31, 2007.

Earlier this month, the group boosted its investment in fellow upscale residential developer SC Global Developments from 12.01 per cent to 13.09 per cent.

Source : Business Times - 23 Feb 2008

Modest weekend sales at Waterfront Waves

IN A bellwether post-Budget property launch, Frasers Centrepoint and Far East Organization sold 20 units at the weekend at their Waterfront Waves condo fronting Bedok Reservoir. The project was officially launched at the weekend with the start of an advertising campaign.

Post-Budget launch: Twenty units at the 99-year leasehold project, which fronts Bedok Reservoir, were sold over the weekend

The sales brought the total sold so far at the 99-year leasehold project to 100 units, including 80 sold earlier after the condo was soft launched around mid-January. So far, 180 units at the 405-unit development have been released.

The average price currently for the entire development is $750 per square foot after discounts, with the spread ranging from around $650 psf to $930 psf. However, for the 100 units sold so far, the average achieved is $801 psf, as they are among the better-facing units. About 85 per cent of buyers of the 100 units are Singaporeans and 35 per cent have existing HDB addresses.

Property industry watchers were keeping an eye on Waterfront Waves for an indication of buying sentiment after Friday's Budget.

Some developers hoped the Budget would boost buyer confidence, paving the way for them to go ahead with launches they had held back because of sentiment dented by the stock market plunge and sub-prime woes.

While the 20 sales at the weekend seem modest, Frasers Centrepoint assistant general manager (sales & marketing) Elson Poon said the result was 'within our expectations in view of current market sentiment'.

'People are still cautious when it comes to making big-ticket purchases,' he added.

The project's pricing may have been a factor, market watchers reckon.

Mr Poon confirmed that the $801 psf average price achieved for the 100 units is a new high for a condo launch in the Bedok Reservoir area. Three-bedroom units at Waterfront Waves cost between $880,000 and just over $1 million.

Giving his take on the outcome for the maiden launch post-Budget, CB Richard Ellis executive director (residential) Joseph Tan said: 'The buying mood is still cautious. But if you're expecting a price correction, it may not happen for a while. The bulk of unlaunched projects are held by mainstream developers. They have the capacity to hold and control prices.'

Another property consultant said: 'If there's any price drop it may be started by smaller developers, who usually try not to hold. As long as they can make money, they'll let go.'

Source : Business Times - 19 Feb 2008

Demand for mass market projects shifts into higher gear

Developers not keen to release high-end projects in shaky market, say analysts

DEVELOPERS' housing sales figures for January reflect a change in strategy to focus more on mass market projects.

Despite the still lacklustre figures for overall developer launches and sales last month, an analysis by Knight Frank shows the number of private homes (excluding executive condominiums) launched and sold in January in the Outside Central Region (covering traditional mass-market/suburban locations) rose 190 per cent and 123 per cent respectively from December 2007.

In contrast, launches and sales in the Core Central Region and Rest of Central Region fell in January, compared to December.

Given the dearth of activity in high-end locations, the Core Central Region suffered the biggest drop in median prices for units transacted during the month, with the figure halving to $1,623 per square foot in January, from $3,200 psf the previous month.

Elsewhere, median prices held steady, edging up 1.6 per cent to $1,053 psf in the Rest of Central Region and $811 psf in the Outside Central Region. The median prices include private homes as well as ECs.

Property consultants expect developers to continue to push out mass market projects, since demand fundamentals are stronger in this segment than the high-end sector, where buying traditionally emanates more from speculators.

'Despite the more dismal global economic outlook, the employment rate in Singapore is still high and this will continue to support demand for mass market homes,' says Colliers International director of research and consultancy Tay Huey Ying.

'As for high- end/luxurious projects, developers are quite cautious and not so prepared to release them amid the current, uncertain market conditions. They will want to wait for better conditions before they launch these projects,' she said.

Monthly data from the Urban Redevelopment Authority (URA) show developers sold a total 316 private homes (excluding ECs) in January, up slightly from 305 units in December, which was the lowest figure since URA began publishing developers' monthly sales figures and prices in June 2007.

However, Colliers' Ms Tay says that stripping out the bulk sale of 97 units at Goodwood Residence in December, the January sales figure was roughly a 52 per cent improvement from December.

January volume was boosted by the launch of new projects like Waterfront Waves at Bedok, which sold 79 units during the month, and Wilkie 80, which saw 50 units sold.

'We observed that luxury prices remained firm despite a decline in sales volume. In the prime districts, units in Grange Infinite, Helios Residences, Hilltops and Scotts Square were sold at median prices between nearly $3,300 psf and $3,700 psf.

'At Sentosa Cove, units in Marina Collection and Turquoise were sold at above $2,650 psf,' says CB Richard Ellis executive director Li Hiaw Ho.

However, Knight Frank director (consultancy & research) Nicholas Mak points out that the number of homes priced above $4,000 psf sold by developers has fallen from 72 units last July to five units in December.

In January, there was not a single primary market transaction in this price range.

Colliers' analysis shows the highest priced home sold in January was a $3,671 psf unit at Scotts Square, compared with $5,146 psf in December achieved at The Ritz-Carlton Residences, and the record $5,600 psf achieved for a unit at The Orchard Residences last October.

The number of new private homes (excluding ECs) developers launched in January sank to a low of 410 units, about 8 per cent less than the 446 units in December and about a fifth of the high of 1,885 units in August last year.

Property consultants suggest developer sales in February may be lower than those in January because of the Chinese New Year.

'However, developers are likely to maintain prices at current levels as they monitor the market situation,' CBRE's Mr Li says.

Source : Business Times - 16 Feb 2008

New home sales remain low with cautious property market

Developers launching fewer units as fears over US slowdown, stock volatility linger

CAUTION remains the watchword in the property market, with buyers still kept on the sidelines by concerns over the United States economy and choppy stock markets.

Developers sold just 316 new homes last month - a tad up on the 305 sold in December - and launched only 410 units, compared with December's 445.

Prices also reflected the uncertain mood and remained largely flat, with overall median prices showing a slight dip.

The removal of the deferred payment scheme has brought transactions to a more sustainable level, according to property services firm Jones Lang LaSalle.

There were some bright spots. Wilkie 80 in Wilkie Road was sold out, while Waterfront Waves in Bedok Reservoir Road reported favourable sales. They made up 41 per cent of all new units sold last month, according to the sales figures out yesterday.

The pinch was felt most in the high-end sector, with few homes sold and none above $4,000 per sq ft (psf). This is a sign that the high-end segment may be experiencing a 'challenging period', said Knight Frank director of research and consultancy Nicholas Mak.

The new figures, which came from developers but were released by the Urban Redevelopment Authority, show that some of the heat may have come out of the market.

Median prices for new private homes, excluding executive condos and landed homes, fell 3.2 per cent from $1,124 psf in December to $1,088 psf last month.

The lowest transacted price was $737 psf for a unit at Coastal View Residences in Jalan Loyang Besar, while Scotts Square in Scotts Road achieved the highest at $3,671.

Projects outside the central region performed best. There were more sales, and the 220 units launched marked the highest since last August.

Buyers at the leasehold Waterfront Waves picked up 79 units and pushed prices up to $909 psf.

In the mid-end segment, Wilkie 80 was sold out at a median price of $1,544 psf. Zenith in Zion Road, launched in December, sold 22 units, while 12 out of 50 units at Mount Sophia Suites went for a median price of $1,719 psf. At the landed project Pavilion Park, 24 terrace houses sold at between $1.8 million and $2 million.

Consultants project lower sales this month, as the Chinese New Year festival will deter buyers from venturing into the market.

'However, developers are likely to maintain prices at current levels as they monitor the market situation,' said Mr Li Hiaw Ho, the executive director of CBRE Research.

Mr Mak expects sales volume for the first quarter to remain thin due to uncertainties over the US economy and stock market turbulence. More developers are delaying or reviewing launches, particularly high-end ones.

'The challenging period experienced in the high-end segment is expected to continue, but the fall in the volume could be compensated by the steady volume in the other segments,' he added.

Colliers International director for research and consultancy Tay Huey Ying said: 'We see the mass and mid-end segments supported by en bloc sellers looking for replacement homes.'

Developers could end up launching and selling up to 9,000 new private homes this year, compared with 14,811 last year, she said.

Source : Straits Times - 16 Feb 2008

Less private home launches as property market slows down

There are more signs that Singapore's property market is slowing down.

Latest numbers from the Urban Redevelopment Authority (URA) show that developers launched just 410 new housing units in January – that is 16 percent less than the number of units launched in December, which was also a quieter month.

Industry watchers said market sentiments have cooled due to the sub-prime crisis and global economic slowdown.

In fact, private home sales in Singapore were at a standstill in January, with developers selling 328 private homes last month.

A unit at Scotts Square at Scotts Road commanded the highest price of S$3,671 per square foot.

At the lowest end, 12 units at La Casa in Woodlands Drive fetched between S$537 and S$601 per square foot.

While last year's property boom is not expected to be repeated, analysts do expect the market to pick up again in the second quarter. - CNA/so

Source : Channel NewsAsia - 15 Feb 2008

Some small property launches but most still hold back

Developers selling projects abroad first before launching them in Singapore.

PROPERTY developers are starting to gingerly test the volatile market with a few launches now that the festive season is behind them.

Those dipping their toes into the choppy waters, however, are mostly offering smaller projects away from the prime areas, said property agents.

Home seekers may have to wait a bit longer for major launches, with the earliest set for next month or April.

Meanwhile, developers waiting for the market to regain momentum are selling Singapore projects overseas before launching them locally, said Mr Ku

Swee Yong, director of business development and marketing at Savills Singapore.

‘Developers are still waiting for the stock market here to settle down,’ said Mr Ku.

Savills is dispatching a large sales team to Dubai next week to market Skypark at St Thomas Walk, CapitaLand’s condo on the Silver Tower site in Cairnhill, and the units Kuwait Finance House bought in Reflections at Keppel Bay and Goodwood Residences last year.

For local buyers, one project likely to be launched within weeks is the 47-unit Cosmo at Guillemard Lane. Prices could be $1,100 to $1,200 per sq ft (psf), said Mr Patrick Oei, associate group director for Huttons Real Estate, which is marketing the project.

Another upcoming launch is that of the 108-unit Verve Residences near Jalan Rajah, with prices likely to range from $900 to $1,100 psf.

These prices are similar to recent transactions in each area, showing that levels are still holding steady.

Homebuyers also picked up a few units in three freehold boutique projects launched in Telok Kurau recently. One is the 28-unit Costa Este, which is selling at $663 to $980 psf. The others are Palm Galleria and Espira Spring, launched during the Chinese New Year weekend with average prices of $850 to $870 psf.

Generally, smaller projects have done well, even in shaky market conditions, said Mr Oei, citing Casa Fortuna in Balestier and Wilkie 80 in Wilkie Road. Both were sold out within three days of their launches late last year. The 106-unit Casa Fortuna sold at about $1,000 psf, while Wilkie 80’s 50 units were taken up at $1,500 to almost $1,800 psf, Mr Oei said.

As for bigger projects, the first phase of Waterfront Waves at Bedok Reservoir will be officially launched this weekend. Prices for the 60-odd units still unsold will rise marginally from the current average of $750 psf, said Ms Kellie Liew, a project director at HSR Property Group.

The next brand-new launch may be Frasers Centrepoint’s Martin Place Residences in Kim Yam Road, due next month. Staff previews for the 302-unit condo started last month, at $1,800 to $2,300 psf.

Other launches to look out for include the delayed Marina Bay Suites and Ho Bee’s project at Dakota Crescent.

Not all industry players, though, have high hopes for upcoming launches. ‘The market is really quiet,’ said one agent. ‘Showflat crowds have thinned out to five or 10 people at a time. We’re still placing advertisements, but no telephone calls are coming in.’

Source : Straits Times - 13 Feb 2008

Let public have first bite of property before directors

IT was reported recently that a listed company had sold a property it had developed to the relatives of a director.

What was unusual this time was that the relatives were walk-in customers during a public sale which was held after the sales preview for invited guests.

The sale was also on the same terms as those offered to members of the public.

I feel that this approach to transacting properties with directors and their related parties represent a standard of corporate governance for other listed companies to follow.

I am sure that shareholders have no qualms about directors buying properties that were left unsold after having been launched to members of the public or even if directors purchased them during the public launch.

However, if directors were given preference to units during the pre-launch, as is often the case, these transactions should be disclosed by the company in a clear and transparent manner.

At the outset, companies should state if these property sales, or the profits from any subsequent resale by the directors, are meant to be part of their remuneration.

If they are, then the amount should be determined and, if necessary, approved at annual general meetings.

Also, if the directors were related to the major shareholder, then minority shareholders should get a chance to vote on it.

If the company's view is that the sale was not part of their remuneration, then there should be a test of valuation or a governance guideline to be followed to ensure that revenues were maximised in the sales to directors.

The reason being, even when properties are sold at list prices without discounts, it is not clear to shareholders that the properties were sold at the best possible price.

If directors were responsible for setting prices and would also likely to have had the first pick of the best units, it is difficult for shareholders to be certain if the launch price was correctly priced to begin with.

The only way to be confident that a company got the best price for the property is if the properties were first open to third parties for purchase or bidding.

Therefore, the guideline for sales to company directors should be that the directors make purchases after the public launch, or at the very least, during the launch.

This will clear doubts on whether the transactions involving directors were in the interest of shareholders.

Ang Hao Yao

Source : Business Times - 5 Feb 2008

Waterfront Waves: Twice as costly, but residents still want to return

Bedok Reservoir en-bloc residents book units in new development

FIRST you sell your apartment in an en-bloc sale.

Then you wait for a new condo to come up on the same spot and buy a unit in it.

That is what some have been doing at an estate on Bedok Reservoir Road.

The good thing for them: Their new home will be in a location they know and love.

The not-so-good thing: Prices have soared.

According to a spokesman for Frasers Centrepoint Homes, one of the developers for Waterfront Waves, there are at least five former owners who have bought a total of six units there.

Since the launch, 80 of the 148 units have been sold.

The spokesman said: 'Former residents return as they feel a sense of belonging in the neighbourhood after living there for years.'

She said owners from the old estate, Waterfront View, were given a day for an exclusive preview and to select units ahead of invited guests. But she added that there would be no discounts for former owners.

These residents will have to pay around twice the sum they got from their en-bloc sale, if they choose to buy a similar-size apartment.

Depending on size and location, the new apartments cost $690 to $870 psf.

Said 71-year-old businessman OhBin Cheng, a former resident who visited the Waterfront Waves showroom two weeks ago: 'The timing was terrible. We went en bloc before the property boom when property prices were still low.

'Then, when we got the money for the collective sale and wanted to buy, housing prices started soaring.'

TWICE THE PRICE, HALF THE SIZE

Not content to live in a smaller apartment, Mr Oh, who got $660,000 for his 1,600 sqft Waterfront View apartment, decided to buy an HDB flat in Tampines for the time being.

Because Mr Oh is fond of his old estate, he hopes to buy a two-bedroom unit about half the size of his old apartment, which, he said, costs almost $700,000.

He said: 'I hope prices will drop so that I can come back here to live.'

Another resident, a 54-year-old retiree who declined to be named, also found himself paying more, just to live in the same estate.

He made a down payment for a 1,600 sq ft, four-bedroom unit, which costs $1.27 million, more than twice the $630,000 he received for his old unit.

Worth it: Former Waterfront View resident Oh Bin Cheng will be returning to the site of his old home. - File Picture: The Straits Times

But unlike other former residents, he is not complaining.

He said: 'I am glad that they released the East Wing first, which is where my former block, 736, used to be.

'What's even better, this time, my view of the reservoir is not blocked. I'm looking forward to watching all the water activities.

'Where else can you get a unit so near the water, except at Sentosa or Marina Bay, where it is so expensive?'

EAGER TO RETURN

Indeed, so eager was he to return that he was among the first few to visit the showroom.

For now, his family is living in another condominium just two streets away. He had bought a unit there earlier.

But he will have to sell that apartment to pay for his new home when it is ready in three years' time.

'Still, I'm happy with my purchase, I can get back many of the memories from living there,' he said.

Some property agents The New Paper on Sunday spoke to, however, felt that most residents would welcome a change, and prefer not to return to new developments on the sites of their en-bloc sale estates.

Property agent Andrew Lin, 28, said: 'It's not really common for former residents to return. Most of them settle down well in their new homes.

'The only reason for them to return would be if there was any additional discount given to them by the developer.'

Source : New Paper - 3 Feb 2008

Prices unlikely to fall yet even if launches have been stalled

Larger developers can still hold out, but some may be more open to slightly lower offers.

SENTIMENT in the property market is lacklustre, showflats are quiet and developers are delaying launches. So there is a chance that prices will head down, right?

Wrong. While stock market volatility and fears of a United States recession have sent many property buyers to the sidelines, developers have not lost their nerve yet.

Prices for post-Chinese New Year launches are unlikely to head south over the next three months, consultants said.

‘Major developers are financially strong, so buyers can’t expect price cuts at launches,’ said Knight Frank director of research and consultancy Nicholas Mak.

Even if the stock market suffers, the property market tends to lag behind by two to three quarters. Usually, property prices fall only when there’s a recession or general weakness in the labour market, said Mr Mak. Singapore is not facing either of those scenarios and they are not expected to arise, he added.

But individual sellers and some smaller developers could find themselves over a barrel in the months to come if buyers stay home.

Developers certainly have an ample supply of projects for launch, having picked up a slew of sites during the boom times in the past two years.

While many can delay launches, those with 99-year leasehold sites might not be able to hold out for long, said a developer.

Still, even if developers are unwilling to cut prices, they could be more willing to negotiate in today’s more subdued market.

‘Officially, their prices might remain at the levels seen last year, but they could be more open to serious but slightly lower offers,’ said Savills Residential director Ku Swee Yong. However, he does not expect them to budge by more than 5 per cent.

And there are still buyers out there looking for homes. Take the situation at the 618-unit Farrer Court. Owners there will receive their collective sale proceeds early next month and not all would have bought a home yet.

Time for homebuyers to do their homework

FIGURES from the Urban Redevelopment Authority (URA) show that private home prices shot up 31.2 per cent last year - way up from 10.2 per cent in 2006 and very close to the spurt seen in the 1996 peak year.

High-end property prices have far exceeded the 1996 peak while mid-tier homes are on a par, noted one market watcher.

Mass market property is a different story. Prices are still below the last peak and good buys could pop up, Mr Ku said.

This segment remains supported by HDB resale flat prices, which rose 17.5 per cent last year, the fastest growth seen since prices shot up by 25 per cent in 1996.

Buyers need to do their homework and look for properties in ‘good’ locations, with easy access to public transport. They could consider fairly new, completed condominiums near an MRT station, said Mr Ku.

They might even look at suburban landed homes, said Mr Ku, who feels those in the Upper Thomson Road to Mandai Road stretch are still undervalued.

As for new mass market launches, the 99-year leasehold Waterfront Waves in Bedok Reservoir has done fairly well. Eighty of the 148 units have been sold. Prices remain at $690 to $870 per sq ft.

‘I think buyers are slowly gaining the upper hand - if they do not already have it,’ said Chesterton International’s head of research and consultancy, Mr Colin Tan. ‘For every buyer, there are many sellers right now. But their expectations are different, there is still a wide gap in between and no sales are taking place.’

Nevertheless, if the stand-off lasts longer than expected, some developers and sellers could panic and slash prices so as to draw in buyers, said market watchers.

These are likely to be the very small developers or new entrants facing a credit crunch, they said.

‘Singapore’s property market is still bullish. The external factors affecting it are actually good because they have stopped the market from overheating,’ said a seasoned property investor.

‘Developers were selling at tomorrow’s prices. Now, they might have to ask for today’s prices.’

Source : Sunday Times - 3 Feb 2008

Rental market watchers home in on key figures

Launch delays, construction bottlenecks may lead to lower home completions than thought.

With private residential rents shooting up 41 per cent last year, one big question is on the minds of property market watchers.

They are now busy trying to figure out just how many private homes will be completed in the next few years - as that will be a key factor affecting how private residential rents will move.

For each of 2006 and 2007, some 6,500-plus private homes received their Temporary Occupation Permit (TOP), meaning that the properties were completed and ready for occupation. This is lower than in preceding years as developers were more cautious in the 2003 to 2004 period due to weak demand for private homes then.

‘As a result, developers initiated fewer projects and bought fewer Government Land Sale sites during the period,’ an Urban Redevelopment Authority (URA) spokeswoman said in response to BT’s queries.

Going forward, about 8,300-plus private homes are slated for completion this year, 13,400-plus units next year and around 18,500 units in 2010 - going by URA estimates as at end-Q4 2007, which were based on the latest quarterly update of completion dates declared by developers for their projects.

However, the actual number of private home completions in 2009 and 2010 may be much smaller because of construction capacity bottlenecks and developers delaying new launches, property consultants and analysts suggest.

Jones Lang LaSalle’s head of research (South-east Asia) Chua Yang Liang says: ‘One factor is whether developers decide to delay launching new projects, given current soft market conditions, especially in the high-end segment, where there may be oversupply concerns. If developers delay project launches, chances are they will also delay the start of their construction.’

The second factor is the bottleneck in construction capacity. This, in turn, will push back TOP dates of projects.

Dr Chua suggests a closer look at URA’s latest numbers as at end-2007, which split the estimates for the number of private homes completed into two groups - based on whether they are in projects which are already under construction or in planned projects.

The 13,493 units slated for completion in 2009, for instance, comprise 11,026 units already under construction as at end-2007 and 2,467 planned units. Dr Chua argues it is almost a certainty that the 11,026 units already under construction will be completed in 2009.

For the units that are being built, ‘there’s no turning back barring unforeseen construction delays. As for those under planning, developers may have some free-play to delay their construction or the tight construction sector may lead to a delay in their completion dates. So there’s for certain at least 11,026 units that will be completed in 2009′, he adds.

For 2010, Dr Chua estimates that between 9,000 and 11,000 new private homes will receive TOP, lower than the headline estimate of 18,509 indicated in the latest official stats. ‘Everyone will be monitoring the official completion estimates quite closely, quarter to quarter,’ he says.

Dr Chua expects URA’s overall private residential rental index to increase by 12-15 per cent this year, after surging 41.2 per cent in 2007.

Knight Frank managing director Tan Tiong Cheng expects private home rents to rise by about 20 per cent this year - roughly half the pace for last year, given that many private residential projects are likely to be completed only in late 2008 and 2009.

Lehman Brothers in a research report dated Jan 28 also projects private residential rents will by rise by 20 per cent this year and stay flat in 2009.

Citigroup in a Jan 25 report noted that the 8,364-unit TOP forecast for 2008 contained in URA’s latest data as at end-Q4 2007 was 51 per cent higher than the 5,541 units forecast for completion in 2008 in URA’s end-Q3 2007 data.

‘With actual demolitions of en bloc developments still impending in the next 9-12 months, net supply will remain low. Construction capacity bottlenecks with competing infrastructure projects may cause completions to be lower than expected,’ Citi Investment Research said.

The net stock of private homes increased by just 1,448 units last year - the smallest rise in at least 12 years.

Property consultants say that this was caused by a combination of a relatively low number of homes that received TOP in 2007 as well as demolition of properties that have been sold by en bloc sales in the past two years.

Source : Business Times - 2 Feb 2008

Market conditions delay Marina Bay Suites launch

KepLand targets after Chinese New Year, but within first quarter.

The launch of Marina Bay Suites has been postponed, with ‘market conditions’ cited as the cause by Keppel Land group chief executive Kevin Wong.

The news comes as a surprise as the consortium developing it - Keppel Land, Cheung Kong Holdings/Hutchinson Whampoa and Hongkong Land, had earlier said that the launch would be around end-January, before the Chinese New Year.

The consortium also said then that over 600 potential buyers, half of them foreigners, had registered their interest in buying into the 221-unit luxury development, priced at around $3,000 psf.

However, at a press conference to announce the company’s full-year financial results yesterday, Mr Wong said that the launch would now be after the Chinese New Year - within the first quarter of 2008. He also said that units would be ‘progressively released in tandem with market conditions’.

Keppel Land’s other launches, including the next phase of Reflections at Keppel Bay, The Tresor and Madison Residences, will all be staggered to follow the launch of Marina Bay Suites to ensure that they do not coincide.

For Reflections at Keppel Bay, which has 400 units remaining, Mr Wong said that its launch would be around mid-2008.

Adopting the cautiously optimistic tone already shared by other developers, he said: ‘If everything picks up in the second half of the year, then we will be back in business.’

His announcement follows Wing Tai deputy chairman Edmund Cheng’s comment on Monday that it would monitor global markets ‘to see how things pan out before we launch anything’. Wing Tai projects that have yet to be launched include Belle Vue Residences and L’Viv.

Earlier this month, City Developments also said that depending on construction schedules, and if the opportunity arose, it could consider short-term leases for Lucky Tower, which it acquired through a collective sale in May 2006.

Keppel Land’s Mr Wong does expect prices in the high-end sector to be affected if a recession takes hold of the United States economy. ‘But we expect mid to mass-market prices to go up steadily,’ he added.

Mr Wong, who said that Keppel Land saw a default rate of about 5 per cent on its projects during the last property slump in the mid-1990s, added: ‘There will be some (if there is a recession in 2008) but the percentage will be fairly low.’

Commenting on the postponement of the Marina Bay Suites launch, Knight Frank director (research and consultancy) Nicholas Mak said that ‘developers are all watching each other now, but someone has to take the plunge first to test the water’.

‘Because of the thin volume at the moment, the market is looking for direction. But we must bear in mind that the volume and price increases in 2007 was out of the ordinary.’

Mr Mak also highlighted that developments with licences to sell will increase as the year progresses. ‘If developers wait for prices to go up, everybody could be launching at the same time.’

Source : Business Times - 30 Jan 2008