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Property investment sales hit record highs in 2007

11 December 2007 2107 hrs (SST)

SINGAPORE: Property investment sales are hitting a new record high this year.

According to property consultant ** Richard Ellis, total investment sales for this year total nearly S$51 billion.

This is 66 per cent higher than the record of S$30.57 billion achieved for the whole of last year.

The growth was driven by large acquisitions from developers in both the private and public sector.

A site at Marina View which went for almost S$1 billion dollars was among the key property deals for the year which helped to push total property investment sales to a new all-time high.

Property consultants said the strong numbers were driven by a strong appetite for acquisitions.

Jeremy Lake, Executive Director of ** Richard Ellis, said: "I think the property market is probably in the sweet spot at the moment, and by that I mean everything seems to be looking very positive. We've seen developers have a very story appetite for sites. We've seen individual investors buying a large amount of condominiums and houses and then on the office side the office market has been very strong. We've seen a large number of foreign investors buying office buildings for investment."

The residential sector took the lead with 60 per cent of the investment sales pie.

There were 109 enbloc sales alone, amounting to S$13.3 billion.

Public sector land sales were also brisk.

Thirty six government sites were sold for a total of S$11.5 billion dollars. -CNA/vm

These comprised purchases of government land sites and the tender awards of luxury water front residential land parcels.

A total of 36 government sites were bought by developers during the year so far consisting of three white sites, nine residential sites, eight commercial sites, six hotel sites and 10 industrial sites.

Meanwhile, investment activity in the office sector remained strong with almost S$14.89 billion of sales.

This accounts for 29 per cent of the overall sales pie.

Office investment sales account for 29 per cent of this year’s total investment sales so far.

CBRE notes that although sentiment in the residential sector has been hit by concerns over the US sub-prime market, it expects the office sector to remain resilient.

“I think the sub-prime has reached Singapore for the residential sector which has been driven largely by sentiment. Sentiment is a little bit bruised at this point in time so your individual home buyer or residential investor is perhaps watching and waiting for more signs of how the market will respond,” said Mr Lake.

CBRE says it expects investment sentiment to remain positive in 2008, given continued economic growth.

 

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Dec 18, 2007
No takers for many collective sale sites as market cools
Quiet end to record year where $12.5b worth of estates were sold en bloc
By Joyce Teo
MOST collective sale sites put up for tender in recent weeks have closed without any bids.
About 40 estates have been launched for sale since October, but just eight deals were sealed between October and last month, said property firm ** Richard Ellis (CBRE).

'The end of the year has come early,' said CBRE executive director Jeremy Lake.

This market cooling comes after a record of about $12.5 billion of collective sales was notched up this year.

That was more than 50 per cent up on last year's $8.2 billion, CBRE said yesterday.

But developers have become more cautious about buying new sites, amid slowing home sales in Singapore and worries over the United States sub-prime mortgage crisis, property analysts say.

While there is no shortage of home owners keen to go en bloc for the sort of record prices seen for most of this year, the number of sites that have successfully been sold has dropped off significantly in recent weeks - coinciding with slower private home sales.

Figures released yesterday by the Urban Redevelopment Authority showed that 611 new units were sold last month, just a tad more than the 590 new units in October.

That compares with a much higher 1,731 units sold in August, for instance.

Said CBRE Research executive director Li Hiaw Ho: 'Clearly, buyers have become more cautious in view of the volatility in global stock markets resulting from the sub-prime problems in the US, the smaller number of new launches...and tightened en bloc sales rules.'

A new set of collective sale rules kicked in on Oct 4.

In the weeks before that, a wave of potential sellers rushed to go en bloc to avoid the more time-consuming rules. But even some who managed to launch sales under the old rules have not succeeded in closing deals.

Big sites such as Spanish Village in Farrer Road, Villa delle Rose off Holland Road and Elizabeth Towers in Mount Elizabeth all had no takers at the close of their tenders recently. Their indicative prices were $878 million, $700 million and $673 million respectively.

The tender for former Housing and Urban Development Company estate Chancery Court on Dunearn Road also closed earlier this month without any bids. It had an indicative price of $468 million.

The freehold Royalville off Sixth Avenue - with a guidance price of up to $350 million - also failed to attract bidders. Others with unsuccessful tenders include Dunearn Gardens, Cavenagh Gardens, The Village, Amber Glades, Grange Heights and Thomson View Condominium.

'There are developers who still want to buy but the problem is that some owners are expecting obscene, sky- high prices,' said an industry observer.

'The lull may continue for a while into the first quarter,' said Credo Real Estate managing director Karamjit Singh.

He said developers have already acquired quite a lot of sites. 'They don't need to take extra risks by buying at today's level unless they believe that there is further upside at current levels.'

Knight Frank's managing director Tan Tiong Cheng said: 'Singapore definitely looks very positive... But this external sub-prime problem will affect local and foreign buying so everyone will exercise caution.'

'Long-term fundamentals still look good... Buying interest should return from mid-January when people return from their holidays,' said Mr Ku Swee Yong of Savills Singapore.

Others, such as Mr Tan and Mr Lake, believe activity will pick up after Chinese New Year in February.

joyceteo@sph.com.sg

 

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Minority owners say NUS should not follow majority in en bloc sale

22 December 2007 0928 hrs


SINGAPORE: It has remained silent — and passive — in the protracted saga over the proposed sale of Gillman Heights to developer CapitaLand for $528 million.

But now, the National University of Singapore (NUS) finds fingers pointing at it after the Strata Titles Board (STB) approved the deal on Friday.

The biggest faction opposed to the deal, comprising 53 of the 76 minority owners, told TODAY they would appeal against the STB's decision, and chief among their grouses is the NUS' role in the en bloc process.

The university owns almost half of the estate's 608 units, which it rents out to its academic staff.

Said one minority owner: "We are very unhappy and very disappointed with the result. NUS was pressurised by the majority owners to agree to the en bloc sale."

In its grounds of decision, the STB said that it was "very mindful" that the NUS was the single majority owner.

Throughout the sale, the NUS stuck to its original position that it would not take part in the proceedings other than agreeing to abide by the majority decision of the remaining owners, the STB noted. It also ruled that the majority owners had "acted properly" in dealing with the NUS.

However, even after the ruling, some of the minority owners insisted that the NUS should not have followed the decision to sell, based on a simple majority. Instead, it should only do so when at least 80 per cent of the remaining owners agreed to the sale, they argued.

Today understands that the NUS signed the Collective Sale Agreement in June last year, after some 70 per cent of the remaining owners did so.

The university could not be reached for comment at press time.

But Lee & Lee senior partner Quek Mong Hua, who represented the majority owners, said: "There's no reason why NUS should not support the en bloc sale when a big majority of the other owners want the deal."

The STB also had strong words for one of the valuation reports — prepared by a former chief valuer for Overseas Union Bank, Mr Yick Keng Hang — put up by the minority owners. The report revised the value of Gillman Heights from $580 million to $660 million within seven months.

The board, which rejected Mr Yick's evidence, said in its ruling: "Yick had shown himself to be given to hyperbole. A review of his evidence would show that he was shifty and self-serving whenever it suited him."

Launched in February last year, the en bloc sale process — which eventually garnered 86.7-per-cent consent — has been dogged by several controversies, including a dispute over the level of consent needed for the sale to go through.

Barring any appeal, the sale committee has three months to complete the deal.

Sale committee chairman Robert Wiener was "relieved" at the decision.

But he added: "Obviously, we would be happier if we could get our money earlier, what with property prices going through the roof."

 

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Dec 24, 2007
S'pore residential market is world's hottest this year

By Nicholas Fang
SINGAPORE'S booming housing market is the world's hottest this year, with local home prices recording the fastest increase.
Residential property prices in the Republic surged 24.3 per cent, after adjustments for inflation, ahead of other bullish markets such as Shanghai in China and Bulgaria, said property investment research house Global Property Guide.

In a report published online, the firm said Singapore's strong performance, like those of Japan and South Korea, was due to robust economic growth.

The survey was compiled using the latest official data from 42 countries, though other statistics were used for a few markets, such as Japan and the Philippines, where such figures were not available.

The latest Urban Redevelopment Authority (URA) numbers used in the survey show that Singapore home prices registered a 27.6 per cent annual jump at the end of September, significantly higher than the 7.6 per cent posted a year ago.

This nominal, non-inflation adjusted figure was below the 30.6 per cent recorded by Bulgaria in September and the 27.9 per cent recorded by Shanghai in October.

But in real terms, after adjustments for low inflation of only 2.66 per cent, the Republic leapfrogged these two markets to reach the top spot, said the report.

Singapore's strong showing underscored a more general recovery in Asia, where several markets gained momentum in the first three quarters of the year.

Global Property said this reflected, to some extent, continued recovery from the 1997 Asian financial crisis.

In contrast, the United States housing market crashed due to the sub-prime mortgage crisis, while high interest rates were behind the slowdown in European house prices.

'In Europe, most countries registered unimpressive year-on-year house price changes in 2007, aside from Norway and Estonia,' the report said.

Looking to the year ahead, Global Property said property prices in much of Asia are still undervalued compared with pre-Asian crisis levels, despite strong increases this year.

It expects potential improvement in rentals in Singapore.

'We believe gross rental yields are now too low, at 2 to 3 per cent.

'Nevertheless, Singapore is attracting and admitting more foreign-born workers - which is positive for prices,' it said.

Elsewhere in the region, Global Property also recommended Cambodia, Thailand, Japan, Australia and New Zealand to property investors.

It, however, cautioned against investing in Europe, apart from a handful of Eastern European states, because of high valuations after a long period of price appreciation.

In the Middle East, it found Egypt attractive for its high rental yields and low taxes, but warned of a possible oversupply in Dubai as more properties come on stream over the next two years.



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STRONG GAINS


While Singapore ranks behind Bulgaria and Shanghai in nominal house price growth, the Republic is the world's best performer in real terms, given its low inflation rate of only 2.66 per cent, says Global Property Guide.

 

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Dec 29, 2007
En bloc sales result in rewarding year for property consultants
Mega deals move some smaller firms and new entrants into new league
By Fiona Chan

THE collective sale euphoria this year has swept in windfalls not only for home sellers, but also for the companies that brokered the sales.
Most property consultancies in Singapore have logged their best-ever year for such deals, pocketing record sums in related fees.

The run of 'mega deals' has also catapulted smaller property firms into the same league as the big boys.

Credo Real Estate, for instance, shot to the top of the pack this year by landing the $1.34 billion sale of Farrer Court in Farrer Road.

The local firm, started in 2002, specialises in collective sales. Bigger players like DTZ Debenham Tie Leung and Knight Frank also handle areas such as investment sales and office leasing.

In all, Credo sold $2.17 billion worth of collective sale sites this year. That is 20 per cent more than the next best performer: DTZ with $1.8 billion.

But DTZ also turned in a record year, said Mr Shaun Poh, the consultancy's director of investments and auctions. 'In terms of fee income, it was a fantastic year for us, the best year so far.'

The consultancies all declined to reveal how much they had earned from collective sales this year, but Mr Poh helped shed some light.

For smaller projects that sell for less than $50 million, most firms charge 0.75 per cent to 1 per cent of the sale price, he said. Bigger projects worth at least $300 million bring in about 0.5 per cent.

Some firms impose extra charges if they find buyers willing to go well above the reserve price, Mr Poh added.

In third place was Savills Singapore, another relatively new entrant to this segment. It only 'really got into the business last year', said investment sales director Steven Ming. It more than doubled last year's sales with deals such as Tulip Gardens and Westwood Apartments.

Next came Knight Frank, which also had a 'record year', with 10 deals totalling $1.2 billion, said investment sales head Foo Suan Peng.

Heavyweight ** Richard Ellis, last year's number one, weighed in at fifth place with four deals, including the $625 million sale of Grangeford Apartments.

Knight Frank's Mr Foo said the collective sales market had never been so active. He noted: 'All kinds of records were broken: sale price per sq ft, sale price quantum, number of transactions, size of development.'

This stellar performance also prompted agencies 'not traditionally in this market' to try their luck, he added.

Newman & Goh, which started marketing collective sale sites only in October 2005, was able to gain a solid foothold. 'It was a great year,' said investment sales head Jeffrey Goh.

Even agencies better known for individual home sales, such as Dennis Wee Group and Ivy Lee Realty, jumped on the bandwagon.

Dennis Wee helped to sell Tampines Court for $405 million, while Ivy Lee brokered the $131.5 million sale of Hong Leong Gardens in the West Coast. Both deals were done in March.

But even in the midst of popping the champagne, the consultants agree next year's outlook is rather less rosy.

Continuing concerns over the United States sub-prime mortgage crisis might discourage buyers, while a new set of collective sale rules could obstruct the path for sellers

 

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Dec 29, 2007
YEAR IN REVIEW: Property
Let's hear it for a year of property records
It has been a spectacular year for the property market. The boom, after a long lull and slow recovery, was fast and furious as one mind-boggling record after another was set. JOYCE TEO recounts the record-busters

CapitaLand pays $1.339b for Farrer Court

CAPITALAND made history in June when it announced it was paying $1.339 billion for the former HUDC estate Farrer Court in a collective sale. This remains the biggest lump sum ever shelled out for a residential site in Singapore.

The sale is also the largest collective one ever in terms of land area and the number of units. Farrer Court has 618 units. Owners of each unit will get about $2.15 million depending on the size of their flats. The development sits on 838,500 sq ft of land near the junction of Farrer and Holland roads.

The sale propelled relatively small- sized Credo Real Estate into the big league of property firms.

The sale may have been the biggest lump sum paid, but Westwood Apartments - which was sold by Savills Singapore late last month - took the record in terms of the price per sq ft (psf) of potential gross floor area, at $2,525.

In all, about $12.5 billion worth of collective sales was done, 50 per cent more than last year's $8.2 billion and far exceeding the $1.99 billion total in 2005.

This has made millionaires out of many. Some lucky owners got more than a few million dollars. Owners of the 24 units at The Ardmore, for instance, received about $11 million each. Owners of the two penthouses at Westwood will each get a whopping $17 million.

Horizon Towers hearing that went on and on


THE acrimonious $500 million Horizon Towers collective sale went through possibly the longest Strata Titles Board (STB) hearing ever before it was approved.

What was meant to be just another collective sale descended into a drawn-out, and at times dramatic, fight between the supporters and opponents of the sale, and the developers wanting to buy the plot.

The sale was thrown out by the STB over a technicality, making it one of the few applications ever rejected. It was then taken to the High Court, which granted the owners' appeal, paving the way for the STB to approve the sale.

The Horizon Towers case involved an array of top lawyers. Majority owners knew they faced an unprecedented lawsuit for breach of contract by the developer if the sale had ultimately failed.

A group of objecting minority owners spent millions fighting the sale. But the estate was eventually sold to Hotel Properties and its partners Morgan Stanley Real Estate and Qatar Investment Authority, a year after they had inked the deal.

Marine Parade unit sold for $750,888


THIS title, for mainstream flats, was claimed by a five-room unit on the 23rd floor in Marine Parade that offers an unblocked view of the sea. The 32-year-old flat in a prized 'point block' right across from the East Coast Park was sold for $750,888 last month.

That is significantly more than the median price of a five-room flat in Marine Parade - $560,000 in the third quarter, up from $485,000 in the second quarter.

Still, higher absolute prices have been paid for executive flats, which are bigger and not as common as five-room flats. One of these, a 156 sq m high floor unit in Mei Ling Street, sold for $780,000 but cost less than the Marine Parade flat on a psf basis.

Property agents say such high-priced flats need to have the 'X-factor' in terms of surrounding amenities, views and so on.

Also, buyers willing to pay such big amounts are not your typical HDB flat dwellers or buyers. They are cash-rich and include home hunters flush with the proceeds of a collective sale, as well as those who have just collected their pension payout.

Orchard Residences home went for over $5,600 psf


THIS slice of downtown luxury is a penthouse unit at The Orchard Residences, the 175-unit leasehold condominium that is being built above the Orchard MRT Station.

The 53rd floor, 5,048 sq ft unit went for $5,600 per sq ft in October, or slightly more than $28 million.

This year, condo prices crossed the $4,000 psf mark and surged past the $5,000 psf mark for the very first time.

In comparison, last year's price record - set in December by a unit in Marina Bay Residences - was only $3,450 psf.

It is not just units at The Orchard Residences that have scaled such stratospheric highs.

Other developments that have registered sales of above $4,000 psf include Hilltops, Ritz-Carlton Residences and Scotts Square.

Sentosa Cove, Nassim Road plots scale new highs


GOOD-CLASS bungalows have always been considered the creme de la creme of landed homes. That is, until the waterfront homes in Sentosa Cove came along.

Last month, two seafront bungalow plots in 99-year leasehold Sentosa Cove sold for a high of $1,696 psf.

Good-class bungalows, which need to be at least 15,070 sq ft in size and be located in gazetted areas have sold for up to about $1,300 psf.

However, even the heady heights of Sentosa Cove were topped in October when a bungalow that is smaller than a good-class bungalow in the posh precinct of Nassim Road was sold for a high of $1,899 psf, or $25.5 million in total.

Raffles Place rentals soar to $19.80 psf a month


ASKING rents at Republic Plaza in Raffles Place have reportedly hit a whopping $19.80 psf a month amid tight supply, up from just above $13 psf a year ago.

Cushman & Wakefield data showed that prime achievable office rents are now slightly above $16 psf a month on average, compared with around $8.50 psf per month a year ago.

Supply of office space was so tight that the Government came up with transitional sites to cater to demand. Sales of office units also rose.

Foreigners, PRs account for a quarter of total sales


FOREIGNERS and permanent residents went on a buying spree, sometimes scooping up nearly a whole residential project.

Knight Frank data showed that they chalked up 7,902 sales from January to November, which accounted for 24.9 per cent of total sales. These figures, said the firm's research and consultancy head Nicholas Mak, are the highest in 13 years, thanks to healthy regional economic conditions, an increase in the number of expatriates as well as other factors.

Thai tycoon Charoen Sirivadhanabhakdi, for instance, bought 47 out of 48 apartments at Hoi Hup's Suites @ Cairnhill for $205 million, or about $2,550 psf.

He also purchased four floors of apartments at The Orchard Residences for $135 million, or about $3,600 psf.

Institutional investors also entered the market in a big way, picking up anything from several units to whole condo blocks and even development sites. They include Macquarie Global Property Advisors, Goldman Sachs and United States-based Wachovia Development.

 

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Dec 29, 2007
Owners decide what is fair compensation in en bloc sales

IN REPLY to Mr Alex Cheong's letter, 'En bloc sales: Find fairer way to compensate all' (ST, Dec 17) on the method of distributing sale proceeds to owners in a collective property sale, the Singapore Institute of Surveyors and Valuers (SISV) would like to clarify its guidelines on the various methods of distribution.
As guidelines, they are meant to assist owners in selecting the distribution method suitable for their development. The recommended methods (based on share value, strata area, valuation or a combination of them) have been used in many successful collective sale applications made to the Strata Titles Board. However, the institute appreciates that there could be specific situations, for example, due to some unique or peculiar aspect of the development where the strict application of the guidelines may be viewed by some to be unfair. This is why there can be no single prescribed method of distribution, and the majority owners will have to decide the best method that will be acceptable to all owners.

Mr Cheong suggested an 85 or 90 per cent strata floor area and 15 or 10 per cent share value as a fair method of distribution instead of the fixed 50 per cent for both. We would like to clarify that using 50 per cent area and 50 per cent share value is just a guide based on the various formulations used in past collective sales. Under the law, it is for the owners themselves to choose a method and proportion. In addition, anyone who is aggrieved with the proposed method of distribution may file an objection with the Strata Titles Board.

The issue of the method of distribution is now better addressed with the amendments to the Land Titles (Strata) Act, which came into operation on Oct 4. Under the amended legislation, the collective sale committee has to convene a general meeting for all owners to consider the method of distribution of the sale proceeds.

The Ministry of Law and SISV will continue to work together to further refine the guidelines where necessary.

Janet Han (Ms)
Secretary
Singapore Institute of Surveyors and Valuers

Radha S. Khoo (Ms)
Head, Corporate Communications
Ministry of Law

 

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Dec 29, 2007
More legislation needed to protect condo owners who do not wish to join en-bloc sale
I HOPE there can be some preventive measures to protect owners of condominiums which have failed in an en-bloc sale, or those who have spent substantial funds on upgrading.
In my condo in Clementi Park, there is renewed dissent by residents against the forming of yet another committee to try again for another en-bloc sale. Owners recently banded together to form an anti-en-bloc group called Save Clementi Park and have launched a website www.saveclementipark.com to save the condo. The web site features many pictures of the condo.

The en-bloc sale attempt last year failed to receive even 50 per cent of the vote. Immediately after this failed attempt, one committee was disbanded, but another one was formed in November this year. This has unsettled many of the residents and such social upheaval is becoming all too common in Singapore.

As a resident of the condo, I am not in favour of an en-bloc sale. En-bloc processes, to say the very least, are disruptive. Moreover, our condo is in the process of upgrading at a cost of $2 million. An en-bloc attempt after a majority of us have voted to upgrade would be a sheer waste of owners' funds. Our upgrading will only complete around mid-2008.

There is no mechanism in place to deal with this. This is harmful to our societal psyche as stated by Mr Waleed Hanafi in his many website articles on en-bloc madness. Perhaps a time ban of, say, 15 years could be put in place for condos which have spent more than $500,000 for upgrading. Some balancing mechanism to reflect and honour decisions made by subsidiary proprietors should also be in place.

The en-bloc law needs to be reviewed.

Yeo Han Tiong

 

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Jan 2, 2008
S'pore private home prices up 31% in 2007 despite slower gain in Q4

Resale prices of HDB flats also rise by 17.4% for the year, in tandem with robust economy.
Prices of Singapore's private homes rose by 31 per cent in 2007, while that for Housing Board resale flats went up by 17.4 per cent, as the property market rebounded after years of sluggish growth.
But for the fourth quarter, prices of private residential property went up at a slower pace of 6.6 per cent compared with 8.3 per cent in the previous quarter, according to flash estimates of the price index for private residential property released by the Urban Redevelopment Authority (URA) on Wednesday.

This pushes the price index to 170.5 points, the highest since the peak in 1996.

Separate flash estimate released by Housing Board also on Wednesday showed that resale prices of HDB flats went up by 17.4 per cent for the year, in tandem with improved sentiments and economic growth.

This is the highest jump since 1997. Only the peaks recorded in 1995 and 1996 exceeded the 2007 performance, said property agents.

The fourth quarter HDB's Resale Price Index rose to 121.6 points, an increase of 5.6 per cent over the previous three months.

'A 5.6% increase from the previous quarter is commendable taking into consideration that the general market sentiment for the 4th quarter has dipped', said Mr Mohamed Ismail, CEO of property agency PropNex.

'This essentially means that property owners who have purchased properties in the last 10 years, with the exception of 1995 and 1996, have witnessed an appreciation in their property value,' he added.

'As a result of 2007 phenomenal performance, properties have become an asset to many HDB home owners rather than a liability. This is indeed good news for HDB home owners.'

Mr Ismail expects the HDB property market to continue to enjoy a double digit growth in the 10 to 11 per cent range this year.

The URA flash estimates showed that the increase in prices of non-landed private residential properties was higher in the suburban regions than the central prime areas.

They went up by 7 per cent in the Core Central Region, 7.3 per cent in Rest of Central Region and 7.5 per cent in Outside Central Region in the last quarter.

In comparison with the third quarter, prices of non-landed private residential properties rose by 8.3 per cent in the core central region, and 7.9 per cent respectively in the other two regions.

The chief executive of property agency PropNex, Mr Mohamed Ismail noted that the price index for property in the core central region - at 190 points in the fourth quarter - has exceeded the 180 points reached in 1996, which means prices of private homes in this area are at an all-time high.

While prices of residential property in the outer regions are still lagging behind the previous peak recorded in 1996, he said there is more room for growth for private homes in the outside cental region.

He forecast for the private residential property sector for 2008: it will continue to perform well.

'However, the price increase will probably fall short of last?s incredible performance fuelled by foreign interest. Thus, the price index for 2008 is predicted to grow in the region of 15 to 18 per cent,' he added.

The URA flash estimates are compiled based on transaction prices given in caveats lodged during the first 10 weeks of the quarter, supplemented by information on the number of new units sold.

The statistics will be updated four weeks later when URA releases the full 4th quarter 2007 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured.

On the supply side, the URA said there are about 65,400 private residential units in the pipeline, of which about 41,600 new private housing units are expected to be completed between 2008 and 2010.

About 38,000 units of the supply in the pipeline (or 58 per cent) have not been sold by developers yet. This does not take into account new sites that will be made available for development through the Government Land Sales (GLS) programme.

The HDB is also increasing the supply of new flats under the Build-to-order system and the release of Design, Build and Sell Scheme (DBSS).

Both the URA and HDB said they will continue to monitor the market situation and property prices closely.

Singapore's property sector saw record prices paid by developers for older condominium sites as they rushed to redevelop them into new units to meet robust demand during the year.

Data showed prices are within sight of peaks reached in 1996, before a regional financial crisis struck and sent the sector into the doldrums.

Singapore's property sector finally began to turn around after the government in 2005 gave approval for two multi-billion-dollar casino-entertainment complexes.

Strong economic performance and efforts to woo the cash of wealthy foreigners also helped to perk up the sector.

 

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Government will continue to monitor residential property market


02 January 2008 2024 hrs


SINGAPORE: The government will continue to monitor the residential property market in a bid to ensure that prices remain stable, according to National Development Minister Mah Bow Tan.

He was responding to questions from reporters on Wednesday for his outlook for the property sector in 2008.

He noted that the government had taken measures last year to cool the sector, but also said that there are external factors at play in 2008.

Mr Mah said: "It's not my job, neither is it my ability to predict prices. All I can say is that we monitor the price situation very carefully and over the past months, the government has taken several steps to try to cool down the strong speculative fervour that was taking place earlier in the year. Those are the internal factors.

"As you know, there are also many external factors that could affect property prices. Those are external factors which are beyond our control, so we don't really know how the sub-prime crisis is going to pan out. We don't know what's going to happen to the American economy this year.

"What we do know is for Singapore and we are optimistic that we will continue to do well. It's up to us to keep a close eye on the market to ensure prices remain stable and move in tandem with the economy."

 

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Jan 5, 2008
Horizon Towers minority owners appeal against Strata board ruling
Estates like Finland Gardens, Regent Court are caught in similar legal battles
By Joyce Teo
JUST as the long-running saga over the Horizon Towers collective sale looked about to end, another chapter is unfolding - and other similar disputes are looming.
The minority owners opposing the $500 million collective sale have appealed to the High Court against a ruling last month by the Strata Titles Board (STB), which had permitted the deal to go ahead.

Now, it has emerged that Horizon Towers is not the only condominium caught in a legal battle over a collective sale.

Owners at other estates such as Finland Gardens are also embroiled in similar tangles. The majority owners of the 48-unit estate in Siglap have filed an appeal on the instructions of buyer Sing Holdings - after the STB threw out the $49.5 million sale application in late November.

Another case, that of Phoenix Court, may go to the Court of Appeal, said an industry source who declined to be named. The STB tribunal that heard the Horizon Towers case said it had been guided by the Phoenix Court case. An objecting couple appealed against an STB decision to approve the Phoenix Court sale. The High Court upheld the STB order on Nov 9.

Over in Serangoon Road, Regent Court owners are preparing to file an appeal in the High Court against an STB decision to grant the $34 million sale, sources said.

Also, owners at Airview Towers in St Thomas Walk have filed an appeal in the High Court against an STB decision to reject its collective sale on a technicality.

The sale of Horizon Towers at Leonie Hill was finally approved by the STB - which had earlier thrown out the sale - on Dec 7 after a lengthy hearing, much sweat and tears, and nearly a year after the deal was inked.

The transaction hit a snag after some owners felt the $500 million price, which works out to $810 to $820 per sq ft (psf) on average, was not enough in a fast-rising market. Neighbouring The Grangeford was sold en bloc last June for just over $1,800 psf.

The dispute descended into acrimony and the STB then threw the sale out on a technicality before an earlier High Court appeal which resulted in a fresh STB hearing.

Horizon Towers became the first collective sale where majority owners were slapped with a lawsuit for alleged breach of contract. The suit was lodged by the buyers: Hotel Properties, Morgan Stanley Real Estate and Qatar Investment Authority.

Over the past two days, three sets of minority owners or objectors filed appeals with the High Court. The owners had a month after the STB ruling to appeal, and yesterday was the final day. They now await a hearing date - expected within three months.

One minority owner said even if the High Court appeal failed, he would take the case to the Court of Appeal. If this happens, the deal could be delayed by another three months. 'My chances of winning may not be high but I will exhaust all legal means to protect my home,' said the owner, Mr K.K. Then, 53.

The retiree said he and his wife have been drawn unwillingly into the sale process. He said he never had the intention to sell his home as it is something money cannot buy.

The objectors are believed to be aggrieved by the STB decision as they feel the hearing was not fair.

At the STB hearing late last year, a key point of contention was that the sale committee sold the estate at the reserve price even though it knew the market had already moved up.

The reserve price of The Grangeford was revised higher before the Horizon Towers deal was inked. But the sale committee stuck with the $500 million price, which was a reserve price set in 2006.


Saying a collective 'no'
BLOCKING THE SALE

Over the past two days, three sets of Horizon Towers minority owners filed appeals with the High Court. They now await a hearing date.

The objectors are believed to be aggrieved by the STB decision as they feel the hearing was not fair.
A key point of contention: The sale committee sold the estate at the reserve price even though it knew the market had already climbed.

The reserve price of neighbouring The Grangeford was revised higher before the Horizon Towers deal was inked. But the sale committee stuck with the $500 million price, which was a reserve price set in 2006.


PROTECTING HIS HOME

One minority owner, retiree K.K. Then, 53, says that even if the High Court appeal failed, he would take the case to the Court of Appeal.

If this happens, the deal could be delayed by another three months.

'My chances of winning may not be high but I will exhaust all legal means to protect my home.'

He says he never intended to sell his home as it is something money cannot buy. 'My wife and I feel we are victims of the collective sale system.'

 

[jq75]

Jan 7, 2008
Several MRT station 'hot spots' likely in the future
Interest in these areas rises as Govt readies review of land use masterplan
By Joyce Teo
A MAJOR review of the town plan governing the development of land across Singapore is due this year - and keen interest centres on the use of land near MRT stations.
Property analysts have identified several MRT station 'hot spots', but they are playing down the possibility that the Government may allow more intensive development in these areas for now.

The five-yearly review of Singapore's Master Plan, due around the middle of this year, will examine plot ratios - the level of intensity of development on a given site.

MRT stations hold interest for planners and industry watchers for the obvious reason that vast numbers of people use them every day. A new Jones Lang LaSalle report on higher plot ratios near Circle Line stations picked Paya Lebar, Buona Vista, Telok Blangah and Harbourfront as new hot spots.

The Master Plan shows the permissible land use and density for every parcel of land in Singapore. Property analysts say over time, plot ratios will have to increase in selected areas to cater to a growing population. What is uncertain is the timing.

For the purpose of planning land use and transportation in the next 40 to 50 years, the Government is using a projected population of 6.5 million, as opposed to the current population of 4.5 million.

Maximising the use of land around MRT stations is an obvious choice.

'You can then minimise car usage, and the masses get the best accessibility,' said Dr Chua Yang Liang, the head of research for South-east Asia at Jones Lang LaSalle. 'From the planning perspective, it is about maximising your investment dollars and social benefits.'

'Yes, the plot ratios may rise, but people should not count too much on that,' said Knight Frank director of research and consultancy Nicholas Mak. 'I don't think the Government will be creating a lot of windfalls for private property owners, as there is no compelling reason to do so.'

Besides, some of the areas along the Circle line are fairly built-up, he said.

National Development Minister Mah Bow Tan said in June there was no need for an across-the-board change in plot ratios, as the land available today would be sufficient to meet needs over the next 10 to 15 years.

That, however, has not deterred some property owners from dreaming of a windfall.

Some recalled that certain sites above or near key MRT stations had their plot ratios raised after plans for the North-

East Line (NEL) were finalised more than 10 years ago. A prime example was the land around the Dhoby Ghaut MRT station, when it was also made the NEL interchange.

There is no need for significant increases in plot ratios along the Circle Line in the upcoming Master Plan because the line will not be ready until 2012, said Mr Ku Swee Yong, the director of marketing and business development at Savills Singapore.

Generally, the areas likely to see a significant revision in development density will be vacant state land around the Circle Line stations. Paya Lebar certainly has some. It is slated to be a regional commercial centre, so it is possible that the Government will allow a higher land density around the station, said Mr Ku.

It may happen at the Buona Vista stations, he said, as the area is a biotech hub.

Places such as Bishan and Dhoby Ghaut have been ruled out because there is little empty state land there. Also, plot ratios in Dhoby Ghaut are already very high, said Dr Chua.

'So you can't raise them further. Otherwise, you will upset the urban streetscape.'

 

[jq75]

Jan 8, 2008
Two landed sites to go on sale with tenancies
Prices should be less than market rate as house owners need to be compensated

[/IMG]

By Joyce Teo
TWO sizeable landed residential plots off Mandai Road will be sold via auction later this month - with prices expected to be below the market rate for comparable plots.
The catch: The 23 houses that sit on the land are owned by different owners rather than the two brothers who own the two respective plots.

That means the buyers of the plots will have to negotiate with the owner-tenants of each house separately and compensate them individually.

After that, the buyer can build three-storey landed homes on the 999-year leasehold sites, both sited on Meng Suan Road.

Colliers International, which is conducting the auction on Jan 30, said fairly large landed plots are relatively rare. For instance, the Government will release only two landed sites for sale in the first half of this year, said its deputy managing director for agency and business services and auctioneer, Ms Grace Ng.

The first Meng Suan Road plot has an area of 21,066 sq ft and is occupied by a row of nine single-storey terrace houses. The second is 31,043 sq ft and with a row of 14 single-storey terrace houses.

The father of the two brothers who own the sites sold the houses to individual owners 40 to 50 years ago for less than $5,000 each.

This may sound unusual, but sales with tenancies were quite common in the past, said Ms Ng. The owners of the Meng Suan Road houses have enjoyed a great deal as they pay the land owners 'ground rent' of just $20 a month.

Negotiating with these owners may take time, but the buyer will be able to take heart that he is likely to get a good price. 'We have applied some discount because they are encumbered with existing tenancies,' said Ms Ng.

The indicative price of the sites is between $250 and $260 per sq ft, inclusive of the development charge. This puts the smaller plot at about $5.3 million and the bigger one at around $7.8 million.

Negotiating with the house owners will be somewhat simplified by the fact that owners of six of the 23 houses are related to one another, said Ms Ng.

Dealing with multiple owners may not be easy, but it is something that boutique development firm Link (THM) Holdings has proven it can handle.

The firm, which began as a fashion business, said yesterday that it had acquired a freehold site in Ban Guan Park, off Holland Road, comprising nine apartments and nine shops, after negotiating with the individual owners since late 2005. It paid $31.1 million for the site of 32,900 sq ft and plans to build 20 semi-detached houses.

The firm said there were several failed collective sale attempts in the past decade.

Its director, Mr Kenny Tan, said the firm then decided to talk to individual owners to address their concerns and to get them to sell individually.

 

[jq75]

More time for Leedon owners?

Tuesday • January 15, 2008

Rachel Kelly
rachel@mediacorp.com.sg

Property developer GuocoLand is considering allowing the former owners of Leedon Heights condominium to stay on in their units for a limited period — a goodwill gesture at the request of those who want more time to find replacement units.

The 23-year-old development off Farrer Road was sold to GuocoLand in a collective sale last year for $835 million. Together with a $40-million development charge, the price works out to $1,062 per square foot per plot ratio.

Said Mr Karamjit Singh, the managing director of Credo Real Estate: "Most developers prefer to get on with their demolition work so as to be able to market their projects and, usually, contractually, the owners are allowed up to six months.

"Recently, some developers with large projects have build show flats in an obscure corner and allowed existing occupants to stay on while the projects are being marketed."

This appears to be what GuocoLand may do. In response to queries, GuocoLand said it believes the land parcel is large enough for it to undertake its marketing initiatives without inconveniencing the residents.

Leedon Heights sits on 48,525 sq m of land with a plot ratio of 1.6, which can accommodate buildings of up to 12 storeys.

Said Mr Nicholas Mak, director of Knight Frank: "It's very unusual for developers to lease back to their owners after the collective sale.

"For developers to do that — I think that has happened before during the Asian financial crisis — it would usually mean the developer feels that the primary sales market is rather weak and is not ready to support the kind of selling price they have in mind."

According to the Urban Redevelopment Authority, there were almost 65,400 private residential units in the pipeline last September. Some 41,600 are slated to be completed by 2010

 

[jq75]

Jan 15, 2008
Bank valuation only half of market rate
I AM currently selling my freehold semi-detached property, which is in brand new and move-in condition. Based on the transacted rate of $720 per square foot (psf) in October last year for another house in the vicinity, and the conservative indicative price from DBS at $2.3 million (which works out to slightly above $580 psf), I asked for $2.4m for my property.
One buyer was keen to buy the house after viewing it, and checked with his bank, Citibank, for valuation. After getting Citibank's valuation at $1.4 million, a staggering difference from my asking price, the buyer backed out.

When I called Citibank in disbelief, the female officer gave me an indicative price at $1.6 million after checking with the bank's 'only approved valuation agency, Knight Frank'.

I called back shortly after and asked to talk to someone at a higher level. An AVP named Adeline Wee called me back.

First, she asked me if I was a Citibank customer. Once she found out I was not, she told me in an unfriendly manner that her officer had given the correct indicative price based on 'a few valuation agencies'. This differed from what the earlier officer had told me - that Knight Frank is Citibank's only approved valuation agency. I pressed Ms Wee for the names of the other agencies, and she named DTZ. She then reminded me that since I am not a Citibank customer, I have no right to question the accuracy of its indicative price. Does she not realise my buyer and I are potential customers? Also, whether I am a customer or not should not change the fact that Citibank should be diligent and professional enough to seek valuations from more than one agency, a practice I believe other banks follow. Such an inaccurate property valuation directly impacts property sellers like me.

I then called Knight Frank to check further. A director of valuation, Ms Lydia Sng, called me back after checking for a few hours. She insisted that its valuation was correct and based on the 'latest and only caveat' for a property near mine. I then told her that based on the Urban Redevelopment Authority's (URA) publicly available caveat records, there are three comparable houses nearby which were sold recently at $720 psf (October last year), $620 psf and $605 psf (July last year). She was surprised and did not seem aware that such records are available, which is astonishing considering she is in the property industry and I am not.

When I searched URA's caveat records for details of the caveat she had based the valuation on, I was shocked to find it had been lodged way back in June last year, before prices of suburban housing started moving up. This is serious as the resulting difference in price valuation is a million dollars, or roughly half the current market rate. Does Knight Frank base all its valuations on outdated transacted prices? If so, aren't the resulting property valuations a poor reflection of true market trends?

Does any authority or professional organisation evaluate valuation practices in the market?

Wong Meow Yin (Ms)

 

[jq75]

Jan 19, 2008
S'pore real estate market quiet as uncertainty looms in US
By Joyce Teo
THE Singapore property market has turned somewhat jittery in the face of growing fears about a recession in the United States.
Analysts suggest that unless buyers need a home to live in, they might want to delay any purchases until a clearer picture emerges.

The days when speculators could make quick, easy profits are almost certainly over, they say.

Thus, consultants do not expect much sales activity in the lead-up to Chinese New Year, especially since few launches have been scheduled.

Indeed, market players might hold off till the Budget is released later next month, so they can gauge the Government's stance, said one consultant, who added: 'If I were a buyer, I'd wait before committing myself to a property investment.'

Apart from worries that a US recession might hurt growth in Singapore, some also believe last year's price spurt in high-end homes was overdone.

 

[michael_yeo]

Jan 15, 2008
Bank valuation only half of market rate
I AM currently selling my freehold semi-detached property, which is in brand new and move-in condition. Based on the transacted rate of $720 per square foot (psf) in October last year for another house in the vicinity, and the conservative indicative price from DBS at $2.3 million (which works out to slightly above $580 psf), I asked for $2.4m for my property.
One buyer was keen to buy the house after viewing it, and checked with his bank, Citibank, for valuation. After getting Citibank's valuation at $1.4 million, a staggering difference from my asking price, the buyer backed out.

When I called Citibank in disbelief, the female officer gave me an indicative price at $1.6 million after checking with the bank's 'only approved valuation agency, Knight Frank'.

I called back shortly after and asked to talk to someone at a higher level. An AVP named Adeline Wee called me back.

First, she asked me if I was a Citibank customer. Once she found out I was not, she told me in an unfriendly manner that her officer had given the correct indicative price based on 'a few valuation agencies'. This differed from what the earlier officer had told me - that Knight Frank is Citibank's only approved valuation agency. I pressed Ms Wee for the names of the other agencies, and she named DTZ. She then reminded me that since I am not a Citibank customer, I have no right to question the accuracy of its indicative price. Does she not realise my buyer and I are potential customers? Also, whether I am a customer or not should not change the fact that Citibank should be diligent and professional enough to seek valuations from more than one agency, a practice I believe other banks follow. Such an inaccurate property valuation directly impacts property sellers like me.

I then called Knight Frank to check further. A director of valuation, Ms Lydia Sng, called me back after checking for a few hours. She insisted that its valuation was correct and based on the 'latest and only caveat' for a property near mine. I then told her that based on the Urban Redevelopment Authority's (URA) publicly available caveat records, there are three comparable houses nearby which were sold recently at $720 psf (October last year), $620 psf and $605 psf (July last year). She was surprised and did not seem aware that such records are available, which is astonishing considering she is in the property industry and I am not.

When I searched URA's caveat records for details of the caveat she had based the valuation on, I was shocked to find it had been lodged way back in June last year, before prices of suburban housing started moving up. This is serious as the resulting difference in price valuation is a million dollars, or roughly half the current market rate. Does Knight Frank base all its valuations on outdated transacted prices? If so, aren't the resulting property valuations a poor reflection of true market trends?

Does any authority or professional organisation evaluate valuation practices in the market?

Wong Meow Yin (Ms)

I refer to the posting under THE STRAITS TIMES FORUM : “Bank valuation only half of market rate” from Wong Meow Yin (Ms).

Knight Frank has responded to Ms Wong’s posting. Please go to http://www.straitstimes.com/ST+Forum/Online+Story/STIStory_196095.html

Michael Yeo
Director
KNIGHT FRANK PTE LTD

 

[jq75]

Feb 9, 2008
Rising cost of going en bloc adds to cooler market
New rules bump up lawyers' fees, draw out collective sale process by months
By Fiona Chan
GOING en bloc is now a more costly and time-consuming business for home owners because of a new set of stricter rules implemented last October.
The rules - aimed at making the process more regulated and transparent - have bumped up the price of organising a collective sale by about 20 per cent to 30 per cent and drawn out the process by a few months, say property consultants.

Most of the higher cost comes from rising lawyers' fees, which have doubled or trebled to reflect a similar increase in workload.

According to one industry source, lawyers 'previously charged maybe $2,000 per household, but now they can charge anything from $3,000 to $6,000'.

Among other things, the new rules now require a lawyer to be present whenever a resident signs a collective sale agreement and to explain the terms of the agreement to each resident during the signing process.

Lawyers may also have to assist the owners in vetting the minutes of sale committee meetings, as well as draft motions for the general meetings, said Ms Tng Peck Chin, the partner in charge of collective sales at law firm WongPartnership.

Another law firm, Rodyk & Davidson, said it has mostly tried to double its fees, although the actual increase varies from estate to estate.

Rodyk partner Lee Liat Yeang said the new rules now double or treble the amount of time lawyers need to put in to get a collective sale going.

'Also, looking at market conditions, prices are already quite high,' he said. 'Lawyers worry that a buyer cannot be found and nothing will materialise from all the effort they had to put in at the initial part.'

In addition to higher lawyers' fees, owners now need to bear the cost of a valuation report for the estate, previously not a requirement, said Mr Karamjit Singh, the executive director of Credo Real Estate, which specialises in collective sales.

The report can cost between $100 and $300 per owner, depending on the size of the project, he said.

Some marketing agents have also raised their fees. Savills Singapore's investment director, Mr Steven Ming, said the firm now charges about 15 per cent to 20 per cent more to make up for 'the extra effort and time'.

Mr Shaun Poh, a senior director of investment advisory services at DTZ Debenham Tie Leung, said while there has been no 'great jump' in the fees his firm quotes, there is no longer any room for bargaining.

'Previously, it was very competitive. We used to make our fee more negotiable,' he said. 'Now, if we quote a fee, we will stick to it.'

A big reason is that it takes much longer to get a collective sale going under the new rules.

One rule, for instance, provides for a five-day cooling-off period during which a home owner may still change his mind after he signs a collective sale agreement.

'Last time, consultants would meet an owner, persuade him of the benefits of going en bloc, and he could just sign the agreement,' said Savills' Mr Ming.

'Now, we have to meet them. After they agree to sign, we have to schedule another time for the lawyer to come down to witness the signing.

'If it all goes well, that's good, but if they change their mind later, we may have to go through the whole process a few times.'

In the four months since the rules were changed, not a single estate has gone up for sale under the new system.

And while the property boom last year owed much to an unprecedented collective sale frenzy, the almost silent collective sale market now is similarly contributing to the cooling property sector.

Marketing agents say plans for a sale are under way at several developments, although most are still in the preliminary stages.

 

[jq75]

Feb 3, 2008
PROPERTY
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
By Joyce Teo
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.'

 

[jq75]

Feb 16, 2008
New home sales remain low with cautious property market
Developers launching fewer units as fears over US slowdown, stock volatility linger

By Joyce Teo
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.