Property News!

[jq75]

May 11, 2009
Concerted effort needed to curb illegal dormitories
I REFER to last Friday's report, 'People's Park Complex...or hostel'. Drive along Park Crescent and one sees rows of bicycles parked on the pavement opposite People's Park Complex. Each morning and evening, there are at least 50 bicycles parked there. It is impossible to walk along the pavement. Illegal fliers are also constantly pasted on the lamp posts.
Though the complex manager was quoted in the report as saying the management corporation (MC) cannot control how landlords rent out their apartments, it seems they can ensure tenants do not park their bicycles within the compound. However, it is all right with the MC if tenants' bicycles cause congestion in public space.

*While I applaud recent efforts by the Urban Redevelopment Authority (URA) to curb private apartment owners from turning their premises into illegal dormitories, the message which needs to be sent out is how to balance private enterprise (that is, landlords renting out apartments) and civic responsibility (that is, ensuring there are no complaints from the public).

As long as we have foreign workers, they will need housing. Hence this balancing act is an ongoing issue that should be tackled by multiple government agencies, not just URA.

The People's Park Complex saga is probably happening across the island. The URA, Singapore Civil Defence Force, Land Transport Authority and town council should take this opportunity to work with the MC of the complex to resolve the issue. This case study can then be applied to other areas in Singapore.

Teo Lian Hong

 

[jq75]

May 12, 2009
Nightmare for local residents in People's Park Complex
AS A resident who has lived in Chinatown for more than 20 years, I would like to respond to last Friday's report, 'People's Park Complex... or hostel?', and Ms Beverly Lim's letter, 'Crowded illegal 'dorms' a concern amid flu threat' (May 4).
Both are extremely benevolent in calling People's Park Complex a 'hostel' and a 'dorm', because it is closer to a slum. It was mentioned that a 1,119 sq ft unit had at least seven rooms. Since each room is usually rented out to six people or more, there could be 42 to 50 occupants per unit. How many live in these places is hard to determine.

Unfortunately, the problem of overcrowding in People's Park Complex is not being eased. The frequent lift breakdowns are obviously due to serious overcrowding. Many residents who live here are often late for work or school whenever one lift breaks down, as the other two lifts are over-crowded and stop at every floor.

However, safety concerns remain the pressing issue here. My neighbour once half-joked that residents on higher floors would be helpless if a fire broke out, as the stairs would be jammed by the large numbers of foreign workers and other residents. The overcrowding and recurrent lift breakdowns would pose serious problems for residents and the authorities in the event of an emergency.

At the same time, residents are greatly disturbed by the sight of foreign workers who walk around their units improperly attired, and many foreign commercial sex workers who also live here.

I do not wish to discriminate against these foreign workers, but merely ask that the authorities do more to address the concerns of residents, and manage the problems to satisfy both guest workers and residents. The unabated security and safety concerns only increase anxiety among residents, which is hardly conducive to the cultivation of trust and respect needed for mutual tolerance and harmony.

The measures the management implemented a few years ago have not resolved the problem.

Overcrowding is exacerbated when some owners partition their units into many rooms to squeeze tenants in, and even hire two to three maids to run them. The authorities should step up their enforcement efforts in the complex.

I suggest that the authorities re-examine their processes with regard to the execution of enforcement operations in the complex as well. Recently, while in the lift, I heard some Chinese foreign workers telling one another about tip-offs on spot-checks in the building.

I hope the management of People's Park Complex will be receptive to residents' suggestions in tackling the problem. Without the management's cooperation, efforts by the authorities may well prove futile in the end.

Agustin Chai (Ms)

 

[jq75]

Agency revealed unit number, price

I recently sold my property through DTZ.

Early this month, I was very upset when I received a flyer which stated the condominium developments, unit numbers and exact transaction prices of properties transacted by the company in the East Coast area. My unit at 1 Amber, #xx-0x, and the transaction price were at the top of the list.

I wrote immediately to DTZ and complained about the agents who had publicly distributed the details of my unit number and exact sale price.

I have yet to receive a reply.

Such information should be confidential and not made public, much less advertised and distributed freely.

By contrast, the Urban Redevelopment Authority's two online services, Prices Of Units Sold In Private Residential Properties and Private Residential Property Transactions With Caveats Lodged, respect the privacy of both seller and buyer by not revealing the address or the transaction price.

 

[danzodanzo]

Such info are released officially by URA (and many other sites that source from URA),
not on their free website, but if you pay them for subscription.

Agency revealed unit number, price

I recently sold my property through DTZ.

Early this month, I was very upset when I received a flyer which stated the condominium developments, unit numbers and exact transaction prices of properties transacted by the company in the East Coast area. My unit at 1 Amber, #xx-0x, and the transaction price were at the top of the list.

I wrote immediately to DTZ and complained about the agents who had publicly distributed the details of my unit number and exact sale price.

I have yet to receive a reply.

Such information should be confidential and not made public, much less advertised and distributed freely.

By contrast, the Urban Redevelopment Authority's two online services, Prices Of Units Sold In Private Residential Properties and Private Residential Property Transactions With Caveats Lodged, respect the privacy of both seller and buyer by not revealing the address or the transaction price.

 

[jq75]

Oct 15, 2009
20,691 apply for 2,132 ready flats
Overwhelming demand for latest batch in popular mature estates
By Jessica Cheam

THE Housing Board (HDB) has been swamped by 20,691 applications for 2,132 completed or near-completed flats - in a sign of red-hot demand for its homes.

Applications for the flats - which are at various locations across the island, including sought-after mature estates - closed yesterday.

The eye-popping figures mean there were almost 10 bids for every available flat - an overwhelming level of demand not seen since the pre-financial crisis property boom, analysts say.

HDB said in a statement yesterday that it had 'expected strong interest for these flats as they are limited in number, located in the popular mature estates, and are either completed or close to completion'.

About seven out of 10 applicants are first-time flat buyers, said HDB. But despite priority being given to first-timers, the chances of being short-listed to select a flat 'will not be high due to the overwhelming response', it said.

Industry observers say this reflects strong demand for readily available flats. These buyers were likely to have been pushed out of the resale flat market, where prices are at historic highs.

Latest estimates showed that HDB resale flat prices rose 3.2 per cent in the third quarter over the second quarter, after an increase of 1.4 per cent in the second quarter over the first three months of the year.

This was on top of a hefty 31.2 per cent price jump in the past two years.

'The primary attraction of these flats is buyers don't have to wait - and they don't need to fork out cash over valuation (COV),' said ERA Asia-Pacific's associate director Eugene Lim. COV refers to the cash a buyer must pay a seller above the flat's valuation - a common practice in the resale market.

The local property market's revival has led to a steady increase in COV values of late, as sellers factor in future price rises.

The intense demand for the latest batch of flats, launched for sale on Oct 1, extended even to traditionally less popular outlying estates such as Punggol and Sengkang.

For example, 1,022 applications were made for 26 four-room flats in Sengkang - which works out to 39 bids for each flat. Over at Jurong West, there were 905 applications for just 19 four-room flats - 47 times the number of flats offered.

PropNex chief executive Mohamed Ismail said this was because in 'absolute pricing', these flats were more attractively priced than their counterparts in mature estates. Four-room flats in Jurong West started from $219,000 and those in Punggol started at $245,000.

Still, even the pricier flats at The Pinnacle @ Duxton - costing up to $553,000 for four-room units and $643,000 for five-room ones - attracted a healthy response.

HDB urged first-time flat buyers who would like greater certainty in securing a flat to apply for its build-to-order (BTO) flats, where 90 per cent of flats are set aside for first-timers.

These flats typically take three to four years to be ready since the HDB builds according to demand.

HDB said its records show that 96 per cent of first-timers get a chance to select a BTO flat within two tries. It also said it will be launching two new BTO projects offering more than 1,000 flats in Sengkang and Jurong West tomorrow.

In the next two months, it will launch a further six BTO projects offering 4,000 flats in Punggol, Sembawang, Bukit Panjang and Dawson.

HDB's latest sale was under the Sales of Balance Flats scheme, which has replaced the balloting, quarterly sales and half-yearly sales exercises. The HDB will issue one final update on application numbers today at 2pm.

The scheme offers flats left over from earlier BTO exercises, the Selective En-bloc Redevelopment Scheme, and also repurchased flats. Such sales exercises will be launched as and when sufficient flats accumulate, said HDB.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the private property boom could also be a factor for the strong demand, as buyers - particularly permanent residents - turn to the resale market. This in turn, pushes first-timers into the flat queues directly to the HDB.

One flat buyer Jeffrey Chua, 30, applied for a four-roomer in Bukit Merah. 'I know the chances are slim, but no harm trying my luck. It beats buying off the resale market right now.'

 

[undiscern]

Such info are released officially by URA (and many other sites that source from URA),
not on their free website, but if you pay them for subscription.

Steetsine.com is one such website and it is FREE!

 

[jq75]

Oct 17, 2009
Lenders try new ways to woo home buyers
They offer free air miles, vouchers, extra services and new products
By Gabriel Chen
THE surge in home sales is prompting two lenders to try new marketing approaches to snare a share of the fiercely competitive mortgage market.

Tried-and-tested strategies like launching more innovative mortgage products and offering better interest rates are now standard procedures.

But some lenders are also trying more radical ways to lure borrowers - like product giveaways, snazzy marketing and that extra bit of service.

'Banks can cut rates only up to a certain level. They have to come up with more innovative ways to attract customers,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.

Standard Chartered and Hong Leong Finance (HLF) are both looking for an edge with new products and approaches.

StanChart has just launched its Approval-in-Principle service initiative aimed at people in property showrooms. Potential buyers will be able to obtain in-principle approval, including advice on loan size and tenor, in just 15 minutes. All they have to do is to provide the bank official with some basic information, including their monthly income and financial commitments.

As these numbers are 'self-declared', the loan is approved only after the necessary documentation is presented and checks are done.

The StanChart service will be on offer this weekend at Far East Organization's Mi Casa showflat, a condominium development in Choa Chu Kang town centre.

'Banking is about service,' StanChart's general manager for wealth management Dennis Khoo told The Straits Times. He said the service will give customers peace of mind knowing how much they can borrow.

'If I know with a good level of certainty that my loan would be approved, I can go ahead to issue the cheque deposit for my option to purchase,' he added.

IT professional Calvin Chin, who is considering buying a property, called StanChart's new service a convenience, but observed that 'for a bank to be at the showroom, it looks like the start of a home-loan marketing war'.

StanChart has also launched Mortgage Protector, a bundle comprising a two- year fixed-rate package at a 2.4 per cent interest rate, with an insurance plan that provides total coverage for the entire loan amount from the onset.

Customers who sign up will get a Visa Platinum Card with a three-year waiver of annual fees and $50 cash back.

HLF has taken another route by becoming the first finance company here to collaborate with Singapore Airlines. If a person takes a $200,000 loan with HLF, for instance, he can get either 3,000 KrisFlyer miles or $200 worth of food and beverage vouchers. A higher loan value means more air miles or more vouchers.

'We want to extend an extra-special treat to our customers to help celebrate the excitement of a property purchase,' said HLF president Ian Macdonald.

Bank officers at rival lenders advise people not to be swayed by marketing ploys but to look at factors such as how the rates are determined, the type of flexibility available to make repayments and the commitment period.

OCBC Bank's head of consumer secured lending, Mr Gregory Chan, said: 'While best pricing and marketing gimmicks support a promotional drive, consumers in our matured market are discerning and most will select a bank based on a combination of appropriate package and engagement experience.'

Mr Leong Sze Hian, president of the Society of Financial Service Professionals, recalled that decades ago, banks frequently dangled treats when consumers signed up for home loans.

But the practice died out after the banks took much flak from industry participants as these giveaways influenced consumers to base their decisions 'on freebies rather than choosing a home loan based on the merits of the loan'.

 

[jq75]

Oct 17, 2009
$1.2b Laguna Park en bloc sale bid fails
$1.7b offer made, then withdrawn; price tag unrealistic, analysts say
By Jessica Cheam
OWNERS of East Coast condominium Laguna Park have failed in their bid to sell the property en bloc for $1.2 billion through a tender process.

Industry analysts say the result was not surprising, considering the high asking price.

However, in a curious twist of events, one company had submitted a bid for $1.728 billion - only to withdraw the offer on Thursday night.

The estate's marketing agent, Credo Real Estate, said yesterday in a statement that it had received two submissions at the close of the tender on Oct 13.

One of them was from a locally incorporated firm which offered the eye-popping $1.728 billion bid. The other expression of interest was from a 'local and prominent developer', which was believed to have made an offer below the reserve price.

Credo declined to name both firms, citing confidentiality agreements.

But it is understood that principal shareholders of the first firm which had offered above the reserve price are based in Indonesia, said Credo.

The firm was due to submit the tender deposit on instructions specified by the owners, but the firm's lawyers wrote in on Thursday night to withdraw the offer. They said the firm faced 'difficulty in their bankers processing the funds and remitting them to Singapore', said Credo.

Owners of the 528-unit development at Marine Parade yesterday said they had not heard any news officially from the sales committee, although a meeting for owners has been slated for tomorrow.

One owner, who declined to be named, said she was neutral as to whether the sale went through or not. 'Whether it sells or not, it doesn't really matter,' she said.

Chesterton Suntec International's research and consultancy director Colin Tan said the condo's failure to find a buyer 'simply confirms that developers are not going to pay unrealistic prices'.

'Developers are signalling to sellers that if you're not realistic, we won't be interested in putting in bids.

'They are mindful of the ability of home buyers to pay even higher prices. This is not sustainable so they're not willing to bear higher risks,' said Mr Tan.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that en bloc deals have not seen much success this year.

Dragon Mansion in Spottiswoode Park, as well as Changi Garden Condominium at Jalan Mariam, have been tendered with no deals done.

'Owners are still expecting pre-crisis price levels which developers are now not prepared to pay. Either the owners wait even longer, or prepare to accept a lower price,' said Mr Mak.

This might prove difficult. As another Laguna Park resident put it: 'I don't think anybody will sell at a lower price.'

Credo said it is still in negotiations with the local developer on a possible deal. Owners have until mid-December, when the collective sales agreement expires, to sell the estate via private treaty.

The former HUDC estate has a large land area of about 677,493 sq ft and a gross plot ratio of 2.8.

The sprawling 30-year-old condominium has been in the headlines over a spate of vandalism attacks on the property of residents who were not keen on the sale.

 

[jq75]

Oct 21, 2009
Dragon Mansion en bloc sale sees lower offer
Roxy-Pacific's $101m offer is below the $120m that owners are asking
By Joyce Teo
THE first significant collective sale in Singapore this year is on the cards - if the condominium's owners will agree to a price that is lower than what they are hoping to achieve.

Boutique developer Roxy-Pacific has agreed to acquire a site at Spottiswoode Park, but at a price that is below the estate's original reserve price.

In an announcement to the Singapore Exchange yesterday, the developer said it has offered to buy the freehold condominium site of Dragon Mansion for $100.8 million, or $860 per sq ft (psf) per plot ratio.

The asking price for the site, with land of about 3,890 sq m and a maximum plot ratio of 2.8, is $120 million, or $1,020 psf per plot ratio. As the price is below the reserve, a fresh set of signatures is needed, so the deal is subject to obtaining the consent of at least 80 per cent of the owners. After that, a sale order from the Strata Titles Board may be necessary, said a Roxy-Pacific statement.

When Dragon Mansion became the first en bloc site to be launched for sale in July this year, market watchers said the asking price was more suitable to the boom times.

They said developers might not be prepared yet to pay at that level. The price of $1,020 psf per plot ratio is significantly higher than the transacted collective sale prices in the area during the 2007 boom.

Even at $860 psf per plot ratio, it is still above the area's boom-time prices, said Ngee Ann Polytechnic lecturer Nicholas Mak. The break-even price is about $1,300 to $1,400 psf, he added.

Yesterday, CKS Property Consultants, the site's marketing agent, would only say it was working towards closing the deal.

A few collective sale sites have been launched since Dragon Mansion came on the market, but there have been no sales yet. Last week, the collective sale tender for the 528-unit Laguna Park closed unsuccessfully. It had two offers, but neither bore fruit. Its reserve price of $1.2 billion works out to $844 psf per plot ratio.

Roxy-Pacific said the purchase would be fully funded through its initial public offering proceeds, internal funds and/or bank borrowings.

Its managing director Chris Teo said the company needs to replenish its landbank. If Roxy-Pacific manages to close a deal, Dragon Mansion will be its third land site. The other two sites were acquired just last month. One is a 910.8 sq m freehold site in Tembeling Road, while the other is a freehold site of 1,055.5 sq m in Joo Chiat Place.

 

[jq75]

Oct 21, 2009
Novena condo to offer smaller units at soft launch
AN UPMARKET freehold condo in the Novena area, that has been adapted to create smaller units than first planned, will have a soft launch tomorrow.

Lincoln Suites is being developed by a consortium comprising Koh Brothers Group, Heeton Holdings, KSH Holdings and Lian Beng Group.

The first phase consists of 56 units located on the 6th to 12th floors at an average price of $1,680 per sq ft. Most of the lower floors are for the project's 190 car park lots.

As with many developments these days, Lincoln Suites was reconfigured to fit a number of small units - 44 studio units and 22 one-bedders. Prices start at over $800,000 for a small unit.

'When we got the site, the trend was for big units. We had to come up with something that the market wants because the market has changed,' said Koh Brothers' CEO and managing director Francis Koh at a media briefing yesterday.

The development, of 175 units, is on Khiang Guan Avenue, next to United Square Shopping Mall.

Its 'upcoming debut' was flagged by Koh Brothers as early as September last year but the market was not in its favour.

The consortium bought the site back in 2007 and made the headlines for reaching a record price of nearly $1,450 psf per plot ratio for the Newton area.

But yesterday, Mr Koh said they had a better baseline than thought, which resulted in a lower land cost of $1,280 psf per plot ratio. It will continue to lease out Lincoln Lodge - the building now on the Lincoln Suites sites - until May next year.

Lincoln Suites will boast a gym sitting on the sky bridge that connects its twin towers on the 24th level. One tower will have three and four-bedders, each with a private lift while the other tower will have smaller units.

Other launches planned for this weekend include the 33-unit Wembley Residences at Yio Chu Kang Road and the freehold 278-unit Cyan in Bukit Timah Road, which is understood to have started its preview. The 248-unit Parvis at Holland Hill is set to be released for sale in the next month.

Many developers have taken advantage of the momentum in the past two quarters and are not rushing to launch their existing units or new projects, if any, said Mr Mohamed Ismail, chief executive of PropNex, one of two marketing agents of Lincoln Suites.

Some developers feel there is no need to rush as their landbank is running low, he added

 

[jq75]

Oct 23, 2009
22 Sim Lim Square units bought from single seller for $35 million
Deal a sign of recovery in investment sales
By Jessica Cheam
A LISTED property company has snapped up 22 shop units in computer products mall Sim Lim Square for $35 million.

Second Chance Properties (SCP) said yesterday that it had bought the units, all on the fifth floor, from a single seller. They comprise a total of 9,604 sq ft of retail space.

Industry observers say the deal reflects the pace of investment sales, which has picked up recently on the back of a recovering economy and a booming property market.

Small strata-titled shops in thriving malls are proving to be resilient investments despite the downturn.

SCP chief executive Mohamed Salleh said the firm had stopped expanding its property and retail arm last year due to the crisis, but 'now that we see the recovery happening, we are confident enough and have started to expand again'.

The 22 units are tenanted to 27 retailers and command a gross annual rental income of $2.634 million - which works out to a rental yield of 7.3 per cent.

After tax and other costs, net yield from the shops is 6.46 per cent, said Mr Salleh.

'This is very attractive, considering that for other property types, you don't see rental yields this high,' he added.

Mr Salleh was not concerned about the units being on the fifth floor as 'shopper traffic is still high on these levels'.

A back-of-the-envelope calculation showed that the monthly rent that SCP is getting out of its Sim Lim Square shops is $22.85 per sq ft.

This is comparable to the average rent for prime upper-storey retail space in Orchard Road.

In malls, first-floor shops typically command the highest rents due to their exposure to shopper traffic.

Credo Real Estate managing director Karamjit Singh said that from a rental point of view, retail and industrial properties usually give the best yield out of all property segments.

'This is especially so for malls where business is thriving, such as Sim Lim Square. It's quite an attractive proposition, especially given the current low interest rates environment,' he said.

Rental yields from office or residential properties are typically lower. Also, the retail market is not as erratic.

'Values and rent are more stable and can hold even during a downturn, especially when retailers are doing reasonably good business,' said Mr Singh.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the SCP sale also indicated that 'developers and investors are now starting to acquire to position themselves for the expected upturn next year'.

SCP's property portfolio will now comprise 76 retail units with a total area of 49,532 sq ft valued at $145 million.

Once the Sim Lim sale is completed - it is being financed through bank borrowings - total rental income will be $10.2 million a year, said SCP.

SCP reported a 95.4 per cent plunge in net profit to $628,000 for the fourth quarter ended June 30, down from the $13.5 million a year ago.

But for the year, SCP's earnings before interest, depreciation, taxation and amortisation rose 5.8 per cent to $14.6 million.

Mr Salleh said the sale was approved by the board on Wednesday and will be subject to shareholder approval at an extraordinary general meeting in December. SCP shares closed half a cent down at 33.5 cents yesterday.

 

[jq75]

Oct 23, 2009
OUE resells freehold plot for tidy profit
The Parisian fetches $283m in the third-costliest private housing land sale in terms of psf pricing
By Fiona Chan
LESS than three years after The Parisian condominium at Angullia Park was sold en bloc, the site has changed hands again - this time at a much higher price.

Overseas Union Enterprise (OUE), which bought the freehold site for $228.1 million in December 2006, has resold the parcel for $283 million, it said in a statement yesterday. The site has been valued at $261.1 million.

The sale price works out to $2,058 per sq ft (psf) of potential gross floor area, making it the third most expensive private residential land sale ever. Only Westwood Apartments in Orchard Boulevard, at $2,525 psf, and The Ardmore at Ardmore Park, at $2,337 psf, were pricier.

The buyer is China Sonangol Land, the property arm of China Sonangol International Holding, an oil and gas company that is also involved in reconstruction and infrastructure projects.

The break-even price works out to about $2,500 to $2,600 psf, said property consultancy ** Richard Ellis (CBRE), which brokered the deal. Depending on the launch date, the finished units could sell in the region of $3,500 psf, it said.

This is the Chinese company's first purchase in Singapore but it may not be its last, said CBRE's executive director for investment properties, Mr Jeremy Lake. 'We believe they are still interested in Singapore, and once this project has proven successful, they may look for other sites here.'

Industry watchers said the sale may reignite interest in Singapore's luxury home market, which has been subdued amid the financial crisis and the global recession as foreign buyers stayed away.

The completion of the two integrated resorts next year could attract more well-heeled foreign buyers in 2010 and 2011, and overseas developers such as China Sonangol Land may be posi-tioning themselves for a potential rally in the high-end market, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. 'It looks as though it is still foreigners who are willing to pay high prices currently,' he said.

In a segment of the market that has not seen many land sales recently, the transaction of The Parisian is a 'fresh reference point' for prime land prices, said Mr Lake. It will give a boost to developers still holding on to expensive land in the Orchard area, waiting for the right time to launch their projects.

But while the sale may demonstrate that developers' appetite for high prices is back, Mr Lake does not expect many similar deals to occur after this. Most developers buy their land from the Government or through collective sales, simply because there are few developers who resell sites they have bought.

A sale like that of The Parisian is particularly rare because OUE had already demolished the condo and started piling works on the site.

In a statement yesterday, OUE said the sale of The Parisian will allow it to focus its resources on its larger development property, The Grangeford. It said it is still committed to the property development business and intends to launch The Grangeford in due course.

OUE incurred a net loss of $47.8 million for the second quarter ended June 30, largely due to impairment losses for The Parisian and The Grangeford, as luxury property values slumped in the recession.

 

[jq75]

Dec 16, 2009
New private home sales down again
November marks fourth month of decline; landed properties are in favour
By Joyce Teo, Property Correspondent

MARKET LEADERS: Core central region developments proved to be the top sellers last month, including Parvis condominium in Holland Hill, where Ho Bee launched 130 units and sold 103 of them, and Marina Bay Suites, where 87 units were sold at a single-day preview. -- PHOTOS: HO BEE AND MCL LAND, RAFFLES QUAY ASSET MANAGEMENT

SALES of new private homes fell in November for the fourth month in a row, following July's sales peak.

Data released yesterday by the Urban Redevelopment Authority shows that property developers sold just 600 units last month, compared with 815 in October and 1,143 in September.

A whopping 2,772 units were offloaded when the market reached its high point in July.

The dip in sales contrasts with an uptick in launches, with 923 units unveiled last month, up from 570 units in October.

Last month's continued decline in new private home sales did not surprise property experts, who had predicted a weaker take-up rate because of the seasonal slowdown and the Government's anti-speculation measures introduced in September.

While low, the sales figure of 600 units is still higher than the 192 units registered for the same month a year ago. And it brings total sales from January to November to 14,243 units - just 568 units short of the 2007 record of 14,811 units.

Like the previous month, November was characterised by no major mass market launches, while landed projects continued to prove a popular market niche, noted real estate company ** Richard

Ellis. Mass market or suburban sales accounted for just 159 units and sales of projects in the rest of the central region or city fringe areas totalled 79 units.

Singapore's core central region took the lion's share - 60 per cent of units sold or 362 units. It also had the majority of launches - 671 units.

Last month's top seller proved to be Parvis in Holland Hill, where Ho Bee launched 130 units and sold 103 of them at a median price of $1,507 per sq ft.

Marina Bay Suites also did well, with 87 units sold at a single-day preview.

Espada in St Thomas Walk managed to achieve higher prices on a per sq ft basis given that it comprised mostly small-format units. One- and two-bedroom homes, ranging from 355 sq ft to 721 sq ft, made up 96 per cent of the 232 units in the project, according to ** Richard Ellis.

Jones Lang LaSalle said November's sales data suggested that the impact of

anti-speculation measures was felt most keenly in city-fringe and suburban locales, where markets are driven mostly by HDB upgraders who are more sentiment-driven and price-cautious.

While the high-end sector continued to lead the market last month, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak, the climb in sales was from a low base and so was bound to seem impressive.

'The number of core central region units launched in November almost doubled from the previous month, but sales rose by less than 20 per cent,' he added.

Jones Lang LaSalle's head of research for South-east Asia Chua Yang Liang noted that the take-up rate of 54 per cent in the core central region suggested that developers may have been too optimistic in marketing their launches last month.

However, despite a poor showing of actual units sold on the city fringes, this sub-market managed a take-up rate of 146 per cent, he added. More units were sold than launched during the month as buyers bought unsold units that were launched earlier.

Strong buying sentiment in prime condo projects, according to Jones Lang LaSalle, is chiefly being driven by affordable prices - unlike in the previous peak in 2007.

The firm's in-house data shows that the average capital value for prime properties within the core central region has grown the most so far this quarter, but is still some 16 per cent shy of the previous peak recorded in 2007.

Average resale prices in non-prime markets grew at a lower rate of 5 per cent, but they are already almost back to the 2007 peak, the firm said.

According to a DMG Research report released yesterday evening, the key thing to note about the market is the sustained level of appetite for high-end properties.

Sales activity and prices have yet to approach the previous peak, but buying appetite and price movement are expected to gain upward momentum over the next six months on the back of the integrated resorts' opening, solid global macroeconomic news flow and increased foreign buying, it said.

For now, the market is likely to remain cautious until buying interest picks up from February next year, said Dr Chua.

 

[jq75]

Jan 5, 2010
Private home prices surge 7.3 per cent
Fourth quarter's rise brings increase for last year to 1.7%; mass market the star
By Joyce Teo

PRIVATE HOME PRICES ON THE WAY UP
PRIVATE home prices shot up 7.3 per cent in the final three months of last year, allowing 2009 to finish in positive territory after a horror start.

Yesterday's flash estimates indicated that prices overall increased by 1.7 per cent last year and it was all down to the final, frantic six months.

The 7.3 per cent jump in the October to December period built on a stellar 15.8 per cent surge in the third quarter - the biggest quarterly rise in 28 years and one that ended 12 dismal months of price decline.

'In a bad year, we still managed to show a 1.7 per cent rise in prices. There's certainly optimism in the Singapore property market,' said Cushman & Wakefield managing director Donald Han.

That low overall figure is a stark reminder of how last year shaped up as a year of two halves, with dire results early on and a surge in the second six months.

Mass market housing was the star segment with record levels reached.

The Urban Redevelopment Authority (URA) data yesterday showed that non-landed home prices in the suburbs edged up 5.8 per cent in the fourth quarter. This is far lower than the 16.1 per cent climb in the third but it brought the full-year increase to 11.2 per cent.

'If you want to go for deep discounts, you can't find them now in the mass market,' said Mr Han.

HDB resale prices - up 8 per cent last year to a new high - are helping to support mass market prices, experts said.

Prices of non-landed homes on the city fringes rose 9.5 per cent in the fourth quarter and were up 3.1 per cent overall for the year.

But prices for non-landed city centre homes were down 2 per cent for 2009 although the 7.1 per cent increase for the fourth quarter points to a recovery.

CBRE Research executive director Li Hiaw Ho said the good response to selective high-end projects launched in the fourth quarter, such as Marina Bay Suites, Cyan and Parvis, had fuelled the price rise.

The robust estimates from the fourth quarter last year have boosted confidence for this year, among the experts at least.

Ngee Ann Polytechnic lecturer Nicholas Mak said the 7.3 per cent rise, while smaller than the third quarter's, was still 'quite significant', indicating that there is still sufficient momentum in the market to push prices higher this year.

The Shore Residences in Katong - launched on Jan 1 after a late December preview - did relatively well, selling 183 units out of 338 units that were released.

Overall, experts believe that by the end of the year, prices may have surpassed the previous peak.

Private home prices may rise by about 10 per cent to 12 per cent this year, with a slightly lower increase in the mass market segment and better upside in the high-end segment, experts forecast.

CBRE Research tips a smaller overall rise of 5 to 10 per cent.

PropNex chief executive Mohamed Ismail said prices will head up as more developers will be launching smaller units at higher prices on a per sq ft basis, especially from the second quarter.

While rises are tipped from every quarter, most agree that prices will moderate this year.

Much of the pent-up demand has been satisfied, said DTZ head of South-east Asia research Chua Chor Hoon.

'There will be less panic or euphoric buying in view of the price increases...in 2009 and the possibility of more government measures if prices run ahead of economic fundamentals.

'Affordability is a constraining factor in the mass market segment and any price increase in this segment will depend on the job market.'

 

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Jan 5, 2010
Residential site for sale
By Joyce Teo

The Government has launched a tender for land parcel that is co-located with the Ten Mile Junction LRT station. --

THE Government on Tuesday launched the sale tender of a residential site at the junction of Choa Chu Kang Road and Woodlands Road.

The 1.56 ha site sits on top of a commercial development Ten Mile Junction and an LRT station.

Sale of the site will include Ten Mile Junction, said the Urban Redevelopment Authority.

The site is on the confirmed list, which means that it will be put up for tender regardless of developers' interest.

The tender will close Feb 23.

 

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Jan 18, 2010
Proposed law changes to protect clients in property deals
By K.C. Vijayan, Law Correspondent
THE Law Ministry has tweaked proposed changes restricting lawyers' access to their clients' money in property deals and is going for a second round of public consultation before finalising changes.

The new suggestions will let conveyancing lawyers hold their clients' money, although a string of safeguards will be put in place to make it that much harder for them to run off with the funds.

In the first round of public consultations last August, the ministry had suggested that lawyers no longer be able to deposit conveyancing money into their regular clients' accounts and that the Singapore Academy of Law (SAL) be the main entity to hold it.

But after feedback, the ministry tweaked the measures to allow clients to choose to leave money matters with their lawyers but to be kept in approved banks, or leave it in the hands of the SAL.

The moves are geared towards providing a final solution to the longstanding problem of lawyers running off with their clients' money. In the last six years, at least four rogue lawyers have fled with almost $20 million in funds meant for property transactions and held in client accounts in their law firms.

Conveyancing funds include the option to buy deposits, purchase and CPF money as well as the stamp duty payable on the deals. These typically come up to at least a six-digit sum for an average private property transaction.

Last year, about 33,000 private homes were sold. In addition, the HDB recorded some 28,441 flat resale deals, based on its last annual report ending March 2009.

Under the new proposals, law firms will have to open up a separate conveyancing account in approved banks which is separate from the client's account.

Money from such conveyancing accounts can be withdrawn only with the signature of the lawyers of both parties of the property transaction and the payout will be only via cashier's order.

In addition, the ministry will also appoint a party to set up a central signature repository of lawyers' signatures to allow the banks and the SAL to check the counter-signatures against the records.

Lawyers will be allowed to hold up to $5,000 of their client's money in their regular accounts, if their clients approve, to deal with last-minute payments and miscellaneous costs incurred in transactions.

For en bloc projects, they will be allowed to keep up to $2,000 per unit, subject to a $200,000 cap.

To give the changes bite, new legislation will be tabled in due course to subject those who breach the rules against keeping such conveyancing funds to fines of up to $50,000 or three years' jail.

The proposals are not expected to slow down the transactions, which typically take two to three months to complete.

A trial run involving SAL and the three local banks - DBS, OCBC and UOB - on 400 new property deals will be conducted in April and May to iron out any kinks in the system.

The consultation paper is at www.minlaw.gov.sg. Send your feedback by e-mail to MLAW_Consultation@mlaw.gov.sg or by fax to 6332-8842 by Feb 12.

 

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Jan 22, 2010
Home prices up 1.8%
By Jessica Cheam

Private home prices shot up by 7.4 per cent in last three months of 2009 as the property market made a quick recovery from a nightmarish start to the year. --ST PHOTO: AZIZ HUSSIN

PRIVATE home prices shot up by 7.4 per cent in last three months of 2009 as the property market made a quick recovery from a nightmarish start to the year.

This followed the previous quarter's increase of 15.8 per cent - a turnaround from a contraction of 18 per cent in the first half of 2009.

Official data by the Urban Redevelopment Authority (URA) released on Friday showed prices of private residential properties for 2009 as a whole increased by 1.8 per cent.

Prices of non-landed properties rose d by 7.2 per cent in the fourth quarter, compared with the 15.9 per cent increase in the previous quarter. Private apartment prices fetched 9.7 per cent more, while prices of condominiums were up by 6.1 per cent. Prices of non-landed properties in Core Central Region1 (CCR) went up by 7.3 per cent in the fourth quarter, while those in Rest of Central Region2 (RCR) and Outside Central Region (OCR) increased by 9.5 per cent and 6.3 per cent respectively.

For 2009, prices of non-landed properties in CCR decreased by 1.8 per cent, while those in RCR and OCR increased by 3 per cent and 11.8 per cent respectively. For the fourth quarter, office, shop and industrial properties increased by 1 per centm 0.6 per cent and 1.8 per cent respectively.

The URA said as at fourth quarter 2009, there were 60,476 private residential units in the pipeline, comprising supply from projects that were already under construction and those that had been granted planning approval but were not under construction yet.

 

[STIndex]

PAP's pro-foreigner policy: two entire blocks of rental flats located in Toa Payoh to accommodate foreign workers

Jan 22, 2010 - PropertyGuru.com.sg
Filipinos will continue to flock to Singapore to work, particularly with Resort World Sentosa (RWS) IR’s opening. This is despite an earlier promise made by Prime Minister Lee Hsien Loong to “slow down” the intake of foreigners.

PM Lee had already defended his pro-foreigner policy in his New Year's Day message. He stressed that foreigners are needed to fill up the jobs that Singaporeans “shun”. However, he added that Singaporeans will still remain a “priority” for his administration.

The Resorts World Sentosa IR had its official opening on January 20 and it is expected to employ around 10,000 workers when it is fully operational.

The exact percentage of Singapore citizens (not PRs) on Resort World Sentosa’s payroll has not been revealed.

Philippine President Gloria Macapagal Arroyo said in April 2009 that RWS will offer around 5,000 new jobs for Filipinos. She sent a delegation to Singapore to explore prospective job opportunities for migrant Filipinos and they discussed with RWS CEO Tan Hee Teck on the available openings for Filipino workers, like for the casinos, hotels and as performers.

Coincidentally, HDB had apportioned two entire blocks of rental flats located in Toa Payoh to accommodate foreign workers of RWS, while some homeless Singaporeans have to sleep in make-shift tents in parks.

Filipinos are in high demand in Singapore due to their relatively lower wage costs compared to Singaporeans, as well as their proficiency in the English language. Though they were initially employed in industries that locals had shunned like nursing, a rising number of Filipinos are entering on S-passes to compete directly with Singaporeans for positions such as account executives, administrative executives, and mid-level managerial positions.

Even companies linked to the state, like POSB and Singpost, are employing Filipinos as their front-line staff.

The top three reasons why Singapore is the “best” place for Filipinos to work are the high pay (relative to Philippines), availability of jobs and ease of obtaining Permanent Resident status.

 

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Jan 23, 2010
Landed homes lift private property market
Prices of landed property rose by 7.7 per cent for the whole of last year
By Fiona Chan

RECOVERY
Prices of semi-detached homes rose by 8.8 per cent, while prices of terrace houses shot up by 10 per cent last year. -- ST PHOTO: SAMUEL HE

LANDED homes turned out to be the star performer of the private property market last year, rising far more in price than other types of housing.

As a whole, detached, semi-detached and terrace houses jumped in price by 8.3 per cent in the fourth quarter of last year and 7.7 per cent for the whole of 2009.

This significantly outstripped condominiums and apartments, according to data released by the Urban Redevelopment Authority (URA) yesterday.

Despite rising 7.2 per cent in the fourth quarter, non-landed property registered a meagre 0.5 per cent price increase for last year.

'Landed homes are limited in supply, so people always aspire towards owning one,' said Ms Chua Chor Hoon, head of South-east Asia research at DTZ Debenham Tie Leung.

'When the market was in a slump, some buyers took the chance to buy landed properties. And now that condominium prices have gone up a lot again, people are seeing better value in landed homes.'

Terrace houses, the cheapest type of landed housing, were the most sought-after. Prices of terraces shot up 10 per cent last year, followed by semi-detached houses with an 8.8 per cent rise.

Detached houses - which include good-class bungalows, the grande dames of Singapore property - rose in price by a smaller 5.6 per cent last year.

Taken together with non-landed property, this translated into overall private home prices rising by 1.8 per cent for the whole of last year.

The rise in prices, despite 2009 being a recession year, was entirely due to the property market roaring back to life in the second half of the year as the economy emerged from recession.

Private home prices jumped 7.4 per cent in the fourth quarter, after soaring 15.8 per cent in the third quarter, said the URA yesterday.

Unlike in earlier quarters, the price increase between October and December was led by more expensive homes nearer to town.

Prices of homes on the city-fringe - covering the East Coast, Queenstown and Bishan - rose the most, by almost 10 per cent.

Homes in the core central region, which refers to the prime districts of 9, 10, 11, Marina Bay and Sentosa, saw prices rise by 7.3 per cent.

For the first time, suburban homes were the laggard in the fourth quarter last year, with a price rise of only a 6.3 per cent.

But although overall prices surged in the fourth quarter, home sales slowed considerably.

Only 1,860 new homes were sold in the final quarter of last year, just a third of the sales in the preceding quarter, said Mr Li Hiaw Ho, executive director of ** Richard Ellis Research.

Resale and sub-sale transactions fell by about half in the fourth quarter, which is traditionally a subdued period for home sales. Last year, this coincided with the introduction of government measures to cool the property market in September.

For the whole year, home buyers bought 14,688 new homes from developers and 18,129 homes from other home owners. While this was a big jump from the muted activity in 2008, sales were still lower than during the boom year of 2007, Mr Li said.

He expects home sales to moderate this year after last year's rapid buying activity.

About 8,000 to 10,000 new homes will probably be sold, while prices are projected to rise by 8 per cent to 10 per cent through the year, led by the high-end segment of the market, according to Mr Li's forecasts.

'Already, the year has started with a positive sentiment in light of the Government's forecast of 3per cent to 5 per cent economic growth for the whole year,' he said. 'Increased hiring and pay rises are also on the cards.'

 

[jq75]

Jan 28, 2010
65% satisfied with property agents: Poll
By Dickson Li
TWO out of three people are satisfied with the service they get from real estate agents but there is still room for improvement, according to a survey conducted by Ngee Ann Polytechnic.

Of the 1,041 people questioned in the poll - 564 of whom had prior experience of property transactions - 64.6 per cent said they were either satisfied or very satisfied with the service they got from their agents.

Another 27.7 per cent felt neutral about the service provided, while the remainder were either very dissatisfied or dissatisfied.

Even among those who were satisfied, 71.1 per cent reported negative experiences of their property agents.

Chief among their complaints was failing to negotiate a 'good' price for the property. The second most common gripe was being given the 'wrong advice'.

Of the survey's respondents, 63.8 per cent felt that a property agent should have at least two years of relevant work experience before being accredited by a professional body.

The polytechnic's real estate lecturer Nicholas Mak, who is the survey's research coordinator, said: 'Two years is an indicator of the standard a real estate professional accreditation body should require from its members.'

An overwhelming majority - 96.6 per cent - of respondents called on the Government to implement changes to the industry.

The most popular proposed action was for the implementation of a property agent certification scheme. Although such a scheme might involve higher costs, 49.1 per cent of respondents did not mind paying a higher commission if they got experienced property agents.

Dr Tan Tee Khoon, chief executive of the Singapore Accredited Estate Agencies, acknowledged that despite a variety of measures taken towards self-regulation, 'there is still much to be desired of this industry'.

Publication of the Ngee Ann Polytechnic survey, which was conducted in the middle of last year, comes before the expected publication of the Ministry of National Development's proposed regulatory framework for the real estate industry.