Resale prices of private homes continue to rise

SINGAPORE: Resale prices of private homes continue to rise in the second quarter of this year. 

According to DTZ Research, resale prices of private residential properties increased at a faster rate across all segments in the second quarter of this year compared to the first. 

It says the average resale price of leasehold condominiums in the suburban areas rose the fastest by 3.9 per cent on-quarter, compared to 0.8 per cent in the first quarter.;

The average resale price of freehold condominiums in the prime districts of 9, 10 and 11 grew by 3.3 per cent on-quarter compared to 0.4% per cent in the first quarter, based on a basket of completed condominiums tracked by DTZ Research.

The average resale price of luxury condominiums rose the least at 1.7 per cent.

But DTZ Research said it reflected an increase over the flat prices registered in the first quarter. 

This it said is the only segment with prices still below the 2007 peak.

Ms Chua Chor Hoon, Head of DTZ South East Asia Research, said prices continue to trend upwards because sellers are benchmarking against the prices of new launches.


- CNA/fa


http://www.channelnewsasia.com/stories/singaporelocalnews/view/1137625/1/.html

The Urban Redevelopment Authority (URA) released today the flash estimate of the price index of private residential property for 1st Quarter 2011.

Based on the estimated price index of private residential property, prices rose from 194.8 points in the 4th Quarter 2010 to 198.8 points in the 1st Quarter 2011. This represents an increase of 2.1%, compared with 2.7% in the previous quarter (see Annex A). The rate of price increase has moderated for 6 consecutive quarters, since 4th Quarter 2009.

URA also released today the flash estimates of the price changes in the 3 geographical regions for 1st Quarter 2011. Prices of non-landed private residential properties increased by 0.9% in Core Central Region, 2.2% in Rest of Central Region and 3.1% in Outside Central Region in the quarter (see Annex B). In comparison, for 4th Quarter 2010, prices of non-landed private residential properties increased by 2.2% in Core Central Region, 1.9% in Rest of Central Region and 2.1% in Outside Central Region.

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold. The statistics will be updated 4 weeks later when URA releases the full 1st Quarter 2011 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.


Supply in the Pipeline

As at 4Q2010, there was a total supply of 65,699 uncompleted units from private housing projects in the pipeline.1 Of these, 33,000 units were still unsold. This supply can last for about 3 years based on the historical annual take-up over the past 5 years. This supply also does not take into account new sites that were recently sold2 or will be made available for development through the Government Land Sales (GLS) programme. Prospective home-buyers are advised to take into consideration the ample pipeline supply of private housing, as well as the potential supply of private housing from GLS sites, when making decisions on property purchase.

1 These refer to new development and redevelopment projects with planning approvals, i.e. either a Provisional Permission (PP) or Written Permission (WP).
2 These refer to new projects for which planning approval have not been obtained yet.
 

By Seah Chiang Nee

A luxurious 7,072 sq ft penthouse at a prime district has just changed hands for S$30 million in one of the most expensive deals on a per square foot basis.

The buyer was a permanent resident from Hong Kong and, the seller, an Indian tycoon who had bought it in 2006 for S$17.3 mil (RM41.21mil).

The cost of the triplex with five bedrooms and an 11m swimming pool worked out to S$4,242 per sq ft, a record in land-scarce Singapore.

Last June, an unknown Chinese national snapped up a bungalow on Sentosa Island for S$36 million, the highest paid for a residence here.

The PR holder from China had considered the price a “bargain”, according to the agent who handled the sale.

These are among a rising number of wealthy foreigners – especially Chi­nese, Indians and Indonesians – who have made this city their family residence while doing business outside.

Asia’s growing wealth, particularly from China and India, is slowly making its way into Singapore. More Europeans, too, are parking their money here.

For a glimpse of a Singapore in, say, another 10 or 15 years just take a picture of Monaco or Zurich and superimpose it on this island.

What will emerge is a city of wealth – transient and abiding, a land of personal banking, celebrity-chef dinners, where Bentleys, Lamborghinis and Ferraris ply the street and branded goods will become daily items.

An example of the foreign presence can be gauged at Sentosa Cove, one of Singapore’s most posh and expensive waterfront projects.

More than 3,000 people now live there. They have come from 22 countries, the top five nationalities being Singaporeans (who make up 40%), Australians, Britons, Germans and Chinese.

“Singapore has opened up a lot in recent years and we’re drawing foreigners keen to park their money as well as live here,” a developer said.

The arrival of the nouveau riche has created new fortunes for Sing­apore’s upper middle class, but it has also widened the economic gap between the rich and the poor as few of the lower class derives much benefit from the phenomenon.

For the upper class, the story is clear. Last year the number of millionaires jumped by 26%.

Currently, 11.8% of Singaporean households have at least US$1 mil in investible assets (excluding property) each.

Some recent headlines gave an indication of the change, good and bad.

A Singaporean billionaire, Peter Lim, has just made a US$507 mil bid (since aborted) to buy England’s Liverpool football team.

And two Singaporeans displayed their wealth less gloriously at the casino tables.

One, a company managing director of a seafood business, lost S$26 mil in just three days, while the second, who was in the latest Forbes list of Singapore’s 40 richest people, dropped S$100 mil.

Easy come, easy go!

Cashing in on it, Citibank last week launched an exclusive Ultima credit card for the super rich in Singapore where members must have S$5 mil and admitted only by invitation.

Some of the nouveau riche came because of their children’s education.

Among them is action star Jet Li, who bought a bungalow for S$19.8 mil last year. He took up citizenship and sent daughter, Jane to study here.

Another new settler, US investment guru Jim Rogers, with a net worth of US$1.8 bil, also came to send his daughter to the reputable Nanyang Primary School two years ago. To ensure she got a better chance, Rogers and his wife had performed 40 hours of volunteer work, something the locals do.

Who are the richest foreigners living here?

The Forbes’ list of top 40 ranks China-born Zhong Sheng Jian, 48, as the fourth richest man in Singapore with a net worth of US$2.5 bil.

And 47 year-old Indian-born Sudhir Gupta, now a naturalised citizen is ranked 13th richest. He has a personal fortune estimated at US$320 mil.

Seventeen percent of foreign buyers of high-end property in the first quarter are Chinese, and the number is rising.

One out of five bought houses in prestigious multi-million dollar districts of 9 to 11, the Central Business District (CBD) and Sentosa.

Some salesmen have reported cases of Chinese buyers paying the down payment with a bag of cash, leading to suspicion they may be keen to cover the money trail.

Recently a growing number of foreigners have turned to buying landed properties.

Under the law foreigners, including PRs, cannot buy any property on land or any apartment with fewer than five storeys – except with special approval.

Under its strategy of attracting the wealthy and talented to settle here, the government appears to be loosening the screw.

In the first half of this year, 150 such sales were allowed, most in the prime, rich areas.

Local critics are protesting against such sale of precious landed properties. “It is like selling the country’s Crown Jewels to outsiders,” one blogger wrote.

The influx of foreign wealth is not welcomed by all Singaporeans. Some see their cake becoming smaller and more expensive.

Many of working class citizens living in the heartland do not see much benefit from having so many rich people around – but they feel the pain of rising costs.

A polytechnic student asked: “And what happens to us when they suddenly take their money and go home?”

34% expect prices of new launches to fall; some fear more cooling measures.

The worst-kept secret in the property market is out in the open. Not only are developers less upbeat about the future but a third of them actually expect prices of new homes to decline. And market performance for the suburban residential sector may be the worst hit.

This dose of pessimism was reflected in the latest readings of Real Estate Sentiment Index (RESI) put out by the developers body and NUS.

In the wake of the Aug 30 cooling measures, some 34 per cent of developers polled for Q3 expect prices for new residential launches to decline, albeit by less than 10 per cent, over the next six months. None of the developers surveyed in Q1 and Q2 had predicted price drops.

Just 44 per cent expect more new residential units to be launched over the next half year, down from 68 per cent in the previous quarter.

The sentiment indices slipped below the psychologically significant mark of 5 in Q3, indicating respondents were less upbeat in the quarter and expect more uncertain market conditions over the next six months.

The consensus as indicated by net balances is generally weaker.

Polled on how the suburban residential sector would perform, the net balance in Q3 was -43 per cent. This means that most expect the sector to perform worse over the next six months. In Q2, this net balance was +27 per cent, hinting at better future performance.

'The strong historical price growth in the sector is not likely to be sustained moving forward. Downward adjustment to the price growth, if it occurs in the next few months, will ease some pressure on the affordability level of mass-market residential properties in suburban areas,' said Associate Professor Sing Tien Foo of NUS.

The net balance for the future market performance of the prime residential sector, while still in positive territory, has also been declining significantly, from +54 per cent in Q1 to +32 per cent in Q2 and +3 per cent in Q3.

About 70 per cent of the developer respondents in the latest survey were concerned that the government could intervene to dampen the property market further.

They also cited other factors that could hurt sentiment over the next six months. The concerns included a slowdown in the global economy (cited by 60 per cent), an increase in the supply of development land (53 per cent), too many new property launches (49 per cent), rising interest rates (47 per cent) and tightening financing/liquidity in the debt market (40 per cent).

Eighty-four per cent of all survey respondents consider it likely and very likely that there will be a further increase in the supply of development land over the next six months. An even higher proportion, 90 per cent, of respondents expect the government to further boost the supply of Build-to-Order and Design, Build and Sell Scheme public housing flats as well as executive condo (EC) units.

Recent government steps to cool the market are expected to have most impact on the HDB resale and mass private housing market segments. About 76 and 64 per cent respectively of survey respondents rated their impact on these two market segments over the next six months as significant. Conversely, the measures are expected to have the least impact on the high-end/luxury segment with 64 per cent predicting minimal impact. For the mid-end private housing segment, 79 per cent foresee only moderate impact.

Real Estate Developers' Association of Singapore and NUS' Department of Real Estate polled slightly over 70 respondents for their latest Q3 survey, similar to the size for the Q1 and Q2 surveys.

The Current Sentiment Index, where respondents are asked to rate overall Singapore real estate market conditions now compared with six months ago, fell from 5.8 in Q2 to 4.8 in Q3.

The Future Sentiment Index, where respondents rate overall property market conditions over the next six months, also slipped from 5.9 in Q2 to 4.8 in Q3. As a result, the Composite Sentiment Index (the average of the two indices), also declined to 4.8. The index ranges from 0 to 10 with a score below 5 indicating deteriorating market conditions.

Redas CEO Steven Choo said: 'The RESI was able to track closely the immediate impact the cooling measures has on sentiments in the property sector.'

Agreeing, Knight Frank chairman Tan Tiong Cheng said: 'The findings are not surprising. Just look at the amount of land government has been releasing and the supply of new HDB flats and ECs they're planning, plus the demand-side measures. People have put on their thinking caps to figure out how they'll be affected, whether they are HDB upgraders, buying a second/investment property, or even downgrading.

'The latest survey results are a clear signal to government that the measures are having an impact,' he added.

Separately, the NUS' Institute of Real Estate Studies yesterday released its monthly Singapore Residential Price Index tracking prices of completed non-landed private homes. The overall index rose one per cent month on month in September, slightly slower than the 1.1 per cent increase in August.

NUS' sub-index for Central region, which covers a basket of properties in districts 1-4 and 9-11, increased 0.6 per cent in September, the same pace as in August. The sub-index for Non-Central region appreciated 1.4 per cent in September, slightly slower than the 1.6 per cent gain posted in August.

Sun, Oct 31, 2010
The Business Times

By Kalpana Rashiwala

The Singapore Tourism Board (STB) said Singapore received 947,000 visitors in September.

That's 18.4 per cent more visitors compared to the year-ago month.

It was also the highest number of arrivals received in the month of September and marked the 10th consecutive month of record visitor arrivals.

STB attributed the performance to the Formula One Grand Prix and the draw of the many leisure and entertainment events under the Grand Prix Season Singapore 2010.

Visitor days were estimated at 3.8 million, a year-on-year growth of 17.5 per cent.

Visitors from Indonesia, Malaysia, Australia, China, and India accounted for almost 60 per cent of total visitor arrivals.

Hotels also recorded higher room revenue and occupancy.

-CNA/wk
www.channelnewsasia.com

29 October 2010

Secondary market transactions of private homes slowed down considerably in September over the preceding month following the property cooling measures announced on August 30.

The number of subsales fell about 52 per cent month on month in September, while resales of private homes eased 42 per cent over the same period, an analysis of URA Realis caveats data as of Oct 19 shows.

The sales volumes are expected to increase over the next few weeks as more caveats are lodged for September's transactions. Nevertheless, market watchers reckon the preliminary numbers shown in the analysis by Credo Real Estate is an indication of the slowdown of activity in the secondary market for private homes following the government measures.

Sat, Oct 23, 2010
The Business Times

By Kalpana Rashiwala

Sept saw fall in private homes sold by developers and more units being returned.

THE cooling measures are leaving their mark on the property market - and the latest developer sales data for the month of September seems to underline that.

After the cooling measures were announced on Aug 30, the number of private homes sold by developers fell 27.6 per cent month on month to 911 units in September. BT's analysis also showed that at least 60 units were returned to developers in September, compared with nearly 30 units in August.

Figures released by Urban Redevelopment Authority (URA) also show that the number of private homes launched by developers slid 9.2 per cent month on month to 1,058 in September.

Property consultants readily attributed the slowdown in last month's sales to the cooling measures. Credo Real Estate executive director Ong Teck Hui says: 'I think we can expect sales to slow down further for the rest of the year due to a seasonal year-end slowdown combined with the effect of the cooling package.'

Property consultants are predicting that between 1,000 and 2,000 private homes (excluding executive condos) could be sold in the current quarter. That could still take the full-year tally to over 14,000 units.

Knight Frank managing director (residential services) Peter Ow suggests that those who returned units to developers last month were more likely to have been short-term investors worried that the market would collapse. 'At that point (when the measures were introduced on Aug 30), the downside risks were a lot higher than any price upside. What's walking away and forfeiting 1.25 per cent of the purchase price compared with being caught by a turn in the market?' he said.

'But now some of these people may go back to the market again. Sentiment has improved slightly this month,' he added.

BT's analysis showed that 13 units were returned to the developer for The Scala at Serangoon Avenue 3 last month, which had been fully sold by the end of August. Of these, 12 units were again sold by the developer, leaving only one unit available at end-September in the 468-unit condo.

Other projects with units surrendered last month include The Greenwich in the Seletar/Yio Chu Kang area (seven units), Cyan at Bukit Timah/Keng Chin roads (five units), Jardin along Dunearn Road (five units) and Waterfront Gold along Bedok Reservoir (six units). The Cascadia, Stevens Suites and Tivoli Grande were among the projects which had a unit returned each.

Analysts point out that the actual number of units given back to developers may have been higher, with the number offset by some of these units being again sold by the developer during the month.

A market watcher acknowledged that 'there was a spike in units returned in September but we're seeing a levelling-off in returns'.

Developers' top-selling project in September was the 99-year-leasehold NV Residences in Pasir Ris, with 347 units sold at a median price of $859 per square foot (psf). This was followed by the freehold Vacanza @ East in the Kembangan area with 89 units transacted at $1,107 psf median price.

CB Richard Ellis executive director Li Hiaw Ho noted that projects with small-format apartments continued to do well in September, thanks to their location and affordable absolute price quantum - such as Jupiter 18, Dorsett Residences and ISuites @ Marshall.

In terms of per square foot pricing, the most expensive unit sold by a developer last month was an apartment at The Orchard Residences which was sold at $4,258 psf. Another three units were also sold at Tomlinson Heights (the former Beverly Mai site) at $3,060 psf (median price).

While the number of homes sold in the Core Central Region and the Rest of Central Region fell about 49 per cent and 59 per cent respectively month on month in September to 84 units and 226 units, sales in the Outside Central Region rose nearly 10 per cent to 601.

'This is contrary to market expectation that the cooling measures would have greater impact on sales of mass-market homes,' says Colliers International director Tay Huey Ying.

Developers have sold 3,723 units in Q3 2010, taking the tally for the first nine months of this year to 12,136 units. This compares with 12,828 units in the same period last year and 14,688 units in the whole of last year.

URA will release the final developer sales figure for Q3 2010 on Oct 22, which may be slightly different as it will take into account, among other things, options which are not exercised.

Market watchers point out that the 911 units sold last month still represented a decent showing, coming in above the 847 units for June (when sales slowed down due to eurozone woes and the World Cup season).

Jones Lang LaSalle's SE Asia research head Chua Yang Liang went so far as to say that the latest set of cooling measures on Aug 30 this year fell short of the first set unveiled in September last year in terms of moderating developers' sales volume.

Based on his analysis of the weighted sales volume 30 days before and after the date of intervention, the latest measures led to a 24 per cent drop in sales volume compared with a 33 per cent decline when the first set of measures was announced in September 2009.

'The numbers suggest that the initial shock of government policies is over as the market adjusts to a stricter regulatory environment each time,' he adds.

DTZ's SE Asia research head Chua Chor Hoon suggests that while the measures are cooling sales volumes, they're unlikely to make a significant dent in prices as interest rates remain low and the economy is still growing.

Knight Frank's Mr Ow expects developers to proceed to launch mass and mid-market projects 'as there's still good demand. It's a matter of whether pricing is reasonable.'

'For the high-end and luxury markets, I believe they'll be more careful about releasing new projects just yet as the buyers have not yet returned, especially foreign purchasers,' he adds.

Mon, Oct 18, 2010
The Business Times

By Kalpana Rashiwala

The freehold condo will be built on the Copthorne Orchid Hotel site.

The Glyndebourne, a 150- unit proposed freehold condo slated to be built on the Copthorne Orchid Hotel site along Dunearn Road, is expected to go on the market as early as next week, say sources.

Market watchers suggest the average price could be about $2,000 per square foot (psf).

Unit sizes are said to range from about 690 sq ft for a one-bedroom apartment with a study to 3,563 sq ft for a five-bedroom penthouse.

City Developments Ltd (CDL) is managing the marketing of the condo on behalf of its hotel unit Millennnium & Copthorne Hotels, which owns the hotel.

Earlier this month, BT reported that the closure of the hotel has been delayed by at least three months.

It will now continue to take bookings until March 31, 2011, instead of shutting down at the end of this year as initially announced.

Meanwhile, CDL itself has sold 48 units so far this month at its NV Residences condo in Pasir Ris, taking total sales to 395 out of 450 units released in the 642- unit project.

The 99-year leasehold condo was previewed on Sept 8 at $830 psf on average initially. Prices were later raised 1-2 per cent.

Over in Yishun, MCC Land has sold 100 units of The Canopy executive condo (EC).

The 406-unit project was launched on Saturday at an average price of $645 psf.

An earlier EC launch, Frasers Centrepoint's Esparina Residences in the Sengkang area, saw another 35 units being sold last week, taking total sales to 399 units.

The project, which comprises a total 573 units, is priced at $740 psf on average. Frasers Centrepoint also sold six units at Waterfront Gold and two units at Waterfront Key, both along Bedok Reservoir, and a unit at Flamingo Valley.

Allgreen is said to have sold about 80 units at its Suites at Orchard project at Handy Road, which was released last week.

The average price for the 99-year leasehold project, which comprises mostly one and two-bedders and is located near The Cathay and Dhoby Ghaut MRT station, is said to be about $2,100 psf.

Meanwhile, sales are said to have been tepid at The Cityscape at Farrer, a 250-unit freehold condo at Mergui Road (near Rangoon Road, facing the Central Expressway) by IOI Group and KSH Holdings.

The project was previewed last week and about 15 units are said to have been sold.

Potential buyers may have found the price, understood to be about $1,400 psf on average, steep.

The 31-storey project comprises two and three- bedders as well as penthouses.

Meanwhile, property giant Far East Organization sold 33 units across various projects last week.

Thu, Oct 21, 2010
The Business Times

By Kalpana Rashiwala

Amendment Bill also raises penalties for foreign buyers who flout rules.

The law which governs foreign ownership of landed residential property in Singapore, will be amended to make it costlier for foreign developers to speculate in land here.

The Bill to amend the Residential Property Act (RPA), introduced in parliament yesterday, also aims to increase the penalties imposed on foreigners who flout the rules.

The RPA, which was first introduced in 1973, mandates that 'foreign' housing developers - that is, developers with overseas shareholders and/or foreign directors - must obtain approval to buy private residential land. They are also required to develop and sell units in a 'timely' manner.

The Act also states that permanent residents need approval to buy restricted properties - that is, landed properties and vacant residential land.

They can each buy only one restricted property for owner-occupation and are not allowed to rent out the property. They are also not allowed to sell the property within the initial years.

Right now, foreigners and permanent residents own just over 3 per cent of Singapore's total landed residential stock of close to 70,000 units.

The RPA was last amended in 2006. The new amendment Bill introduced yesterday refines safeguards to prevent developers from speculating. In addition, the penalty framework will also be enhanced to ensure that it continues to be effective and relevant.

Many penalties have not been revised since 1974, despite significant increases in the standard of living and residential property prices in Singapore.

Currently, the RPA mandates that foreign housing developers must complete residential developments within five years (the specified project completion period). They must also sell all units within two years from the time the project receives its temporary occupation permit.

The developers also cannot sell undeveloped residential land.

With the new amendment Bill, the Law Ministry is now proposing that developers who fail to complete and sell their developments within the stipulated period will be subject to a new extension charge framework.

They will pay for the extension of time beyond the original completion timeframe - similar to what they face under the extension premium scheme for sites sold under the government's land sales programme.

Other amendments ensure that foreign purchasers who flout the rules of ownership under the RPA will also face increased penalties.

For example, those who break the rules while buying or selling a restricted property will now face a non-compliance fine of up to $200,000 and/or a three-year jail term, as well as a fine of $2,000 a day for continuing offences. Right now, they face a fine of up to just $5,000 and/or a three-year jail term.

In addition, foreign beneficiaries of restricted properties will have to sell their properties within five years, down from 10 years now. And former Singapore citizens and ex-permanent residents will also have to dispose of their restricted properties within two years after giving up citizenship or permanent resident status.

The amendments are expected to take effect by the end of the year.

Thu, Oct 21, 2010
The Business Times

By Uma Shankari

Singapore's GDP expanded by 10.3 percent on a year-on-year basis in the third quarter of 2010.

On a quarter-on-quarter basis the economy contracted by 19.8 percent, a reversal from the growth of 27.3 percent in the previous quarter.

The advance estimates released by the Ministry of Trade and Industry (MTI) on Thursday said that the Singapore economy remains on track to achieve the overall growth forecast of 13 to 15 percent for the whole of 2010.

Commenting on the sectoral decline on a quarter-on-quarter basis, MTI said the manufacturing sector contracted by 57 percent in the third quarter, after expanding by 67 percent in the preceding quarter.

It attributed the decline largely to the biomedical manufacturing cluster, where some pharmaceutical companies switched to producing a different value-mix of active pharmaceutical ingredients. MTI also cited some plant maintenance shutdowns during the quarter.

The construction sector also contracted by 12 percent, compared to an expansion of 29 percent in the preceding quarter. MTI said this was mainly due to the completion of key commercial and industrial building projects earlier in the year.

The services-producing industries registered a modest sequential growth of 1.6 percent, following a 13 percent expansion in the previous quarter.

MTI said growth for the rest of the year will be underpinned by a number of industry-specific factors.

It said continued growth in global demand for electronic products will lend some support to the electronics and precision engineering clusters.

It added that increasing visitor arrivals, drawn by the Integrated Resorts, will continue to bolster tourism in Singapore.

MTI will release the preliminary GDP estimates for the third quarter of 2010, including performance by sectors, sources of growth, inflation, employment and productivity, in November 2010.

- CNA/de

Whenever I visit my friend at his sprawling Binjai Rise bungalow, I would jokingly ask him if he has had the opportunity to say “hello” to his newfound neighbour, Asian star-turned-Hollywood actor, Jet Li.

Ever since news broke that the celebrity snapped up a Good Class Bungalow (GCB) for a reported S$19.8 million, there has been a lot of talk about Singapore attracting the rich and famous as well foreigner eligibility in buying such properties.

I have to say, despite its no-nonsense and staid reputation, Singapore has over the years done a good job in shedding its conservative image to one that is hip and “happening”.

Foreigners have often been lured here due to the ease of doing business, our political stability, geographic location and efficiency.

However, they, particularly those in show biz, also bemoan about the lack of entertainment and liken the city to a “cultural desert”.

Nevertheless, Singapore has managed to successfully reinvent itself to a place that is buzzing with activities, especially with recent events like the Formula One and the opening of its two new integrated resorts, Marina Bay Sands and Resorts World Sentosa.

This has helped put our city on the world map and on the radar of foreign investors.

The Global Property Guide agrees and recently said Singapore is the hottest real estate market in the world, attracting the rich from far and beyond.

Foreign eligibility

For the record, a foreigner can own landed properties in Singapore.

However, they do face restrictions and need prior approval from the Singapore Land Authority (SLA).

Foreigners will first need to be a permanent resident (PR) before they can be allowed to purchase landed homes in mainland Singapore.

Even so, getting a PR is not a guarantee.

They will need to be further assessed by the authorities based on their qualifications and their economic contribution to Singapore before being given the green light.

Having said that, Sentosa Cove is the only place where foreigners are allowed to purchase landed property without any restrictions.

GCBs are an attractive investment asset class

The lure of owning a GCB is indeed very attractive.

GCBs refer to low-density prime real estate that are located in the leafy, prestigious neighbourhoods such as Cluny Road, Ridley Park, Leedon Park, King Albert Park, Binjai Park and Yarwood Avenue.

According to DTZ, freehold landed properties in prime areas moved up 2 percent quarter-on-quarter to S$1, 611 per sq ft, lower than the 3.3 percent growth recorded in the second quarter.

Meanwhile, freehold units outside the prime areas have hit a new high in the third quarter this year.

It’s per sq ft pricing has now gone up 1.7 percent quarter-on-quarter to $952 per sq ft, surpassing the high of $943 per sq ft recorded during the 1996 boom for the first time.

Despite the slowdown in demand from ultra high net worth investors due to their cautious sentiment over the growth of major economies in the West, I do believe GCBs will continue to be an attractive investment asset class.

Firstly, they will always be in great demand due to their limited availability – there are around 1,000 GCBs spread across Singapore.

Secondly, they offer a good rental yield.

A real estate agent whom I spoke to who specialises in the GCB market said investors can expect to earn between $28,000 to $35,000 in rental income per month.

With the dismal interest rates that banks are currently offering (at less than 1 percent), it is no wonder cash rich investors would prefer to park their money in the GCB market.

In the meantime, I am hoping with bated breath that I would “accidentally” bump into Jet Li the next time I come round Binjai Rise and perhaps snag an autograph or two.

Khalil Adis is an experienced property writer, with in-depth knowledge of Singapore’s and Malaysia’s property market.

By Khalil Adis (courtesy of PropertyGuru)

Investors paid 150 million dollars for a former landmark property. -AFP

Wed, Oct 06, 2010
AFP

LOS ANGELES - A group of Hong Kong- and Singapore-based investors has paid a knock-down price of 150 million dollars for a former landmark property in Beverly Hills, they announced Tuesday.

Joint Treasure Ltd. bought the eight-acre property next to the Beverly Hilton - for less than a third of its sale price of around 500 million in 2007 - at auction from Mexican billionaire Carlos Slim's bank, Inbursa.

The 9900 Wilshire Boulevard site, formerly home to the upscale Robinson's Beverly Hills department store, was owned by Britain's Candy Brothers but fell into foreclosure this year and was acquired by Inbursa, a lender.

The site, bought for 148.3 million dollars, is at the junction of Wilshire and Santa Monica boulevards in the heart of Beverly Hills.

The new owner is a group comprising three partners - Chow Tai Fook Group of Hong Kong; Wee Cho Yaw Family Group of Singapore and David Chiu of Far East Consortium International Limited, a commercial property and hotel developer.

They intend to develop the site with 235 condominiums and 17,000-square-feet of retail and restaurant space, under a plan given permission by local authorities in 2008.

"This is an incomparable site that cannot be replicated, and we intend to build a superb project offering world-class luxury residences," said Daniel Yiu, senior adviser to Joint Treasure.

The first executive condominium (EC) development launched in over five years has received strong response in the market.

Applications for the Esparina have been oversubscribed by at least two times, according to developer Frasers Centrepoint who is unable to give exact figures.

Executive condos are a hybrid of public and private housing. New units have the same restrictions as public housing, but these expire after ten years.

Experts say they are not surprised by the strong response and believe there is pent-up demand for such housing.

The show flats of the Esparina have been packing in crowds over the weekend.

Among the reasons for the popularity of the EC is its proximity to Buangkok MRT Station.

The temporary occupancy permit is expected in the first quarter of 2014.

The Esparina also has a unique selling point in its dual key units. About 12 per cent of the total units can be split into two separate apartments with different entrances.

With rising prices in the property market, observers say the affordability of ECs is another attraction for buyers, especially among the sandwiched income class.

Mark Teo, senior group division director, ERA, said: "There are some families who have the income of between S$8,000 to S$10,000 - that is, exceeding the limit to buy HDB flats directly from HDB.

"But at the same time, if they were to buy a private condo, even a mass market private condo, it could be well above a million dollars, so to them it is a big financial burden.

"EC buyers are generally young professionals, maybe they're just starting to work, so to them they have other expenses to take care of them, so ECs for this group of people really serve this purpose."

In recent years, prices of mass market condos have generally risen by more than half to hit over S$1,000 per square foot, according to experts. This makes ECs more attractive as they are about 25 per cent cheaper.

The 573 units at Esparina, ranging from two- to four-bedroom units and the penthouses, are priced at S$730 to S$750 per square foot on average.

The project is the first EC to be launched since the La Casa in Woodlands in 2005.

There are at least four more developments set for launch this year, which observers believe will help cater to pent-up demand for such developments.

The Canopy in Yishun previews this weekend.

Christine Sun, senior manager, Savills Research & Consultancy, said: "The demand for ECs is expected to stay firm. Buyers would have a wider home selection as a further supply of about 1,980 EC units from four other projects is expected to be released within the next six months.

"The average unit price for these units may not deviate too much from Esparina; they could range between S$720 and S$780 psf."

Mr Teo said: "The introduction of new ECs is going to be able to curb the escalation of prices of mass market condos. However, it is not going to drag the prices down, I believe."

The supply of ECs will be boosted with the release of two more EC sites for sale on Wednesday.

The two sites are at Tampines and Bukit Panjang, and are under the confirmed list of the Government Land Sales Programme for the second half of 2010.

The Ministry of National Development had said in August that it would release more land for tender to yield 3,000 DBSS flats and 4,000 ECs to make it easier for first time home buyers to secure a home.

In 2011, the ministry plans to release land sites for another 4,000 DBSS flats and 4,000 ECs.

- CNA/al
channelnewsasia.com

Resale prices of HDB apartments showed a higher increase than private home prices. -AsiaOne

Flash estimates from the Urban Redevelopment Authority released today show that based on the estimated price index of private residential property, prices rose from 184.2 points in the 2nd Quarter 2010 to 190.0 points in the 3rd Quarter 2010.

This represents an increase of 3.1 per cent, compared with 5.3 per cent in the previous quarter.

The Housing and Development Board's (HDB) flash estimates also showed an increase of 167.8 in the Resale Price Index for the third quarter. This translates to a 4 per cent rise, which is slightly below the second quarter's 4.1 per cent rise - the biggest increase in nearly two years.

The Housing Board and URA will release public and private housing data  for the third quarter on October 22. 

Fri, Oct 01, 2010
AsiaOne

Average price for freehold Vacanza units expected to top $1,000 psf

A joint venture between Hoi Hup Realty and Malaysia's Sunway group is previewing Vacanza @ East, a freehold condo in the Kembangan area, today.

The average price is expected to be slightly over $1,000 per square foot for the 141 units being released in two blocks of the 12-storey project. The project will have a total 473 units in seven blocks.

The project comprises one to four-bedroom units as well as penthouses.

About 39 per cent of units have either two bedrooms or two bedrooms with a study. Another 30 per cent are three bedders.

Last week, Roxy-Pacific group previewed Jupiter 18 at Lorong 102 Changi. So far it has sold more than 70 per cent of the 53 units in the freehold project, which range from one bedders of 388 sq ft to two-bedroom penthouses of 1,119 sq ft.

The average price is about $1,100 psf. In absolute quantum, prices start from slightly over $500,000 for a one-bedder.

Meanwhile, City Developments found buyers for another 35 units at NV Residences in Pasir Ris, taking total sales to 335 units out of 380 launched units in the 642-unit development.

It previewed the 99-year leasehold development on Sept 8 at an average price of $830 psf but later raised prices by about 1-2 per cent.

Meanwhile, Far East Organization sold 23 units last week across its residential portfolio, down from 32 units the preceding week.

In the latest week, it sold units at projects like Floridian, Waterfront Key, Waterfront Gold, The Greenwood, Hillview Regency, Hillvista, Silversea, The Shore Residences, Centro Residences and The Greenwich.

DTZ Research said yesterday that the average capital value of 99-year leasehold suburban private apartments/condos in the resale market rose 2 per cent quarter-on-quarter to $660 psf in Q3.

This is a smaller increase than the 4 per cent rise seen in Q2 this year.

The average cap value of luxury condos also saw a slower 1.6 per cent quarter-on-quarter increase to $2,630 psf in Q3.

In the landed segment, the average capital value of freehold homes in the prime districts 9, 10 and 11 have crept up 2 per cent Q-on-Q to $1,611 psf in the third quarter after rising 3.3 per cent in Q2.

'The slow growth in prices is likely to come to a halt for the rest of the year following the recent implementation of a slew of government measures to cool the residential market. Sales volume is expected to be lower as sellers continue to maintain their asking prices while potential buyers hold out for lower prices,' DTZ said in its release.

Thu, Sep 30, 2010
The Business Times

The National Parks Board (NParks) will be expanding the 6-hectare site of primary rainforest in the Singapore Botanic Gardens to include a 9.8-hectare Learning Forest to showcase the best of tropical trees.

National Development Minister Mah Bow Tan said this at the launch of the "Wealth of the Rain Forest" exhibition on Friday.

The Learning Forest will also include a new marshland showcasing tropical wetland plant species and aquatic wildlife.

Mr Mah added that when completed, the Learning Forest will give visitors an exceptional forest and marshland experience within the city for nature education and nature watching.

Through thematic walks, visitors will get to see giant trees, trees with interesting forms and barks of various textures, a conservation collection of rare fruit and nut species, and a bamboo garden.

The indoor "Wealth of the Rain Forest" exhibition features the richness of plant life in the rainforests, and will be held until October 6.

The exhibition also reveals interesting facts on how certain rainforest plants have
healing properties and how the forests present opportunities for eco-tourism and other forms of recreation.

For example, quinine, the anti-malaria medication, was extracted from the bark of the Cinchona tree found in the forests on the Andes mountains of South America.

The Gutta-Percha (Palaquium gutta), a relative of the Chiku fruit tree, was discovered by the colonial British in Singapore during the mid-19th century for use to insulate the new invention of submarine telegraphic communications cable (from 1866) and is still the preferred non-toxic material for dentists performing root-canal fillings.

"The 'wealth' that tropical rainforests confer is multi-fold. They provide us with sustenance and valuable materials for fabrics, building, fuel, pharmaceutical and medicinal applications. Rainforests also present eco-tourism and recreational opportunities," said Mr Mah.

"But more importantly, rainforests are our key defence against global warming as a mega carbon sink, given their natural capacity to store large amounts of carbon. In fact, the amount of carbon stored in forests is estimated to be more than all the carbon found in the atmosphere."

-CNA/wk/ir
channelnewsasia.com
24 September 2010

It is a permanent residence scheme for million-dollar investors, one which spells out clearly the financial criteria that an applicant needs to fulfill. But from Oct 1, foreign entrepreneurs applying for permanent residence under the Contact Singapore's Global Investor Programme (GIP) will find the bar raised.

They must now have a company turnover of at least $30 million per annum in the most recent year and at least $30 million per annum on average for the last three years to qualify. Previously, they needed at least $10 million in the most recent year and $10 million on average for the last three years.

Also, from Jan 1, they will have to invest at least $2.5 million in a new business entity; or in the expansion of an existing business operation; or in a GIP-approved fund. In the past, entrepreneurs needed only to invest between $1 million and $2 million.

The changes, announced on Aug 31 on the Contact Singapore website, come on the back of a tighter immigration policy. They are also a sign that the Government is being "more selective" about the kind of foreigners the country is taking in, said Government Parliamentary Committee (Manpower) deputy chairman Charles Chong.

"In slowing down the number of immigrants, we could either set the criteria higher or resort to balloting which we don't want. We want to attract higher category applicants. These economic migrants are beneficial for the country," he said.

Mr Chong, who is a Member of Parliament for the Pasir Ris-Punggol GRC, dismissed the notion that this was an election ploy. He described the move as a "general policy shift to reduce the number of immigrants".

However, he acknowledged that the changes could result in fewer entrepreneurs qualifying under the GIP scheme.

Still, Mr Chong added: "The policy is not cast in stone, I'm sure the Government will be flexible and adjust to the needs of the nation."

TODAY/fa
28 September 2010

Next 9 months could see slew of mid-tier and high-end projects in market.

Developers here plan to launch another 34 residential developments with more than 8,800 units by June 2011, data compiled by Knight Frank shows.

Most of the new projects rolled out will be mid-tier and high-end developments. Knight Frank's list shows that 21 out of the 34 possible launches are located in the upmarket districts of 1, 2, 4, 9, 10 and 11.

Developers BT spoke to trust that the latest round of government measures to dampen demand for private homes and HDB flats announced on Aug 30 will impact mostly mass market homebuyers.

They are hopeful that new launches, which are mostly for homes in the mid-tier, high-end and luxury segments, will see healthy take-ups.

'I believe that the hardest hit projects will be the mass market ones,' said EL Development managing director Lim Yew Soon. 'For the mid to high-end projects, the impact will be somewhat lesser.'

The large number of upcoming mid-tier and high-end developments is not a reaction to the latest round of property measures, developers and analysts said. Rather, having pushed out numerous projects targeted at upgraders, many property groups are left with pending mid-tier and high-end project launches.

CB Richard Ellis executive director Joseph Tan said that many developers who bought mass market sites launched them within nine-12 months, with some even pushing out their projects in six-seven months to ride on the exuberant upgrader market.

'The fourth quarter will see more of the mid to high-end launches,' Mr Tan said.

Added one developer: 'Most developers rushed to launch mass market projects last year when that segment of the market was very hot, so there are mostly mid-tier and high-end projects that are waiting to be launched now anyway.'

But, many developers did not want to commit to a firm launch date - even though in some cases, showflats are ready and brochures have been printed.

CapitaLand recently said that it will go ahead with the launch of its new 1,715-unit condominium on the former Farrer Court site in Farrer Road by the end of this year.

The chief executive of the group's Singapore residential arm, Wong Heang Fine, said that while the new government measures have created some 'flux' in the market, things should 'settle in a couple of months'.

The launch of the Farrer Road project will be closely watched as it is the largest single residential development likely to be offered to homebuyers in the near future.

CapitaLand is likely to hedge its bets by rolling out the development in phases, similar to what City Developments and the Hong Leong Group did with their 642-unit NV Residences in Pasir Ris.

EL Development's Mr Lim also said that he intends to launch his 115-unit freehold project on the site of the former Diamond Tower in Jalan Rajah, in the Balestier area, in Q1 2011. But, despite the more bullish outlook for the mid-tier and high-end segments, several large suburban projects will be launched soon.

Esparina Residences, a 573-unit executive condominium (EC) project at Sengkang by Frasers Centrepoint and Lum Chang Building Contractors, will be launched next month.

Major private suburban launches in Q4 2010 include Hoi Hup Sunway Property's 473-unit Vacanza @ East at Lengkong Tujoh; Far East Organization's 214-unit The Lanai at Hillview Avenue; and Keppel Land's yet-unnamed residential development at Lakeside Drive, which will have more than 600 units.

On Aug 30, the government said that it will now disallow concurrent ownership of HDB flats and private residential properties within the specified minimum occupation period.

Other measures were aimed at potential buyers of second homes. Those with an existing mortgage can now borrow only up to 70 per cent of a property's value for a second home, down from 80 per cent previously. They must also pay 10 per cent in cash, up from 5 per cent.

Developers and analysts said then that the measures will hit prices and sales of private homes, but mostly in the mass market segment.

Wed, Sep 22, 2010
The Business Times

By Uma Shankar

The number of property units sold in the third quarter has continued to fall from the previous quarter.

According to CB Richard Ellis, some 3,300 to 3,500 new property units were sold in the three months to September.

This is lower than the 4,033 and 4,380 units sold in the second and first quarters respectively.

CBRE said residential market activity in the third quarter moved at a steady pace until it hit a snag in September when the government introduced its latest set of property cooling measures.

It said it believed market sentiment was dampened and sales activity slowed down as industry players took time to digest the implications of the measures.

In the third quarter, projects in popular locations and those with small-format units continued to be the star-performers.

Those fully sold included 368 Thomson (157 units), The Scala (468 units), Terrene (172 units) and small- format projects Haig 162 (99 units) and Dorsett Residences (68 units).

Suburban 99-year leasehold condominiums, The Greenwich at Seletar Road and NV Residences at Pasir Ris Grove, set new price benchmarks of S$1,095 psf and S$830 psf in their respective locations.

During the quarter, developers acquired more than 10 sites from the private sector.

The more prominent deals included the purchase of Goodrich Park for S$86.0 million or S$629 psf/plot ratio, and Meng Gardens, a prime site in district 9, for S$137.0 million or $1,380 psf/plot ratio.

A total of six residential sites and one commercial-residential site were bought from the government.

This included the purchase by Far East Organisation of a 444,136-square foot site at Jalan Eunos for S$257.8 million or $415 psf/plot ratio.

CBRE said developers would continue to look for development sites but would likely be less bullish in their bids.

It expects the residential market to mellow in the fourth quarter of 2010.

New property unit sales volume in the fourth quarter is expected to be lower, at around 2,000 units.

New projects that are primed for launch include Vacanza @ East and two executive condominiums, Esparina Residences and The Canopy.

-CNA/wk

Private property prices in Singapore have remained at affordable levels to first-time home buyers despite the recent run-up in the housing market here.

The government's recent announcement of cooling measures also had little impact on affordability.

The Real Estate Developers' Association of Singapore (REDAS) said this may help boost prospects in the local property market.

These days, first-time buyers for private properties use about 36 per cent of their monthly take-home pay to service their housing loans every month.

REDAS said this is a healthy rate, as it is lower than the norm of 40 per cent.

Analysts agree, saying that a below 40 per cent affordability ratio means that housing prices are still affordable.

Back in 1997, during the peak of property boom, the affordability ratio went up to as high as 50 per cent.

This means that almost half of a home owner's salary would go into financing the mortgage, making it difficult for Singaporeans to buy a property.

"The level that we have right now of 30 to 40 per cent is pretty much in line with market. So today's market, there's no sense of panic. Properties are still fairly affordable," said Donald Han, MD of Cushman & Wakefield.

Analysts believe the improved affordability may continue to prop up sentiment in the property market and boost sales in the longer term.

They also believe the local property sector to perform strongly this year, with a total sale of 14,000 homes by December.

"I think 14,000 is definitely within the market reach, because there's still a lot of liquidity in the market," said Colin Tan, head of Research & Consultancy at Chesterton Suntec International.

Analysts also expect property prices to continue to increase in the long term. - CNA /ls

No need to inform IRAS of improvements to property.

Property owners will no longer need to inform the Inland Revenue Authority of Singapore (IRAS) when they rebuild, enlarge, alter or conduct improvement works on their properties.

In one of three changes Parliament passed on the property tax act yesterday, IRAS will now obtain the necessary information - essential to re-assessing property tax - directly from other government agencies that have the information.

Two other amendments to the property tax act will see the fine tuning of the definition of 'structural networks', and reduction of the time limit for the recovery of property tax to five years from the current six years.

Lim Hwee Hua, Minister in the Prime Minister's Office and Second Minister for Finance and Transport, said that shortening the time limit to recover outstanding property tax 'is in alignment with the five year time-bar period for tax recovery under other Tax Acts', such as the income tax and GST tax acts. The change is set to kick in from January 2012.

On fine-tuning the definition of 'structural networks', Mrs Lim said that the definition should be made clearer 'for the avoidance of doubt, that even a single pipeline may be regarded as a structural network. Further, it will be made clear that property tax can be levied on the installed parts of a network that is currently in use or intended to be in use.' For example, a network of pipelines that has been installed but has yet to be put to active use is liable to property tax, she added.

Last week, IRAS said that its $2 billion property tax collection for FY 2009-2010 was 31 per cent lower than the FY 2008-2009 collection.

Sun, Sep 19, 2010
The Business Times