Luxury home markets hit by cooling measures

According to JLL, the average capital values for luxury homes fell by 0.6% in Q1 as a result of cooling measures such as a higher ABSD and a tighter LTV ratio. This is compounded by the slower slower population and economic growth. Similarly, a CBRE report stated that despite a 1.8% increase in prices of luxury homes to US$2,297 psf, transaction volumes have fallen as a result of the cooling measures. Looking ahead, demand and prices are expected to remain stable, with capital values falling by up to 5%.

(Source: Business Times)

Developer sales of private homes fell by 50% to 1,375 units in April

Developer sales of private homes excluding ECs fell by 50% from 2,793 units in March to 1,375 units in April as a result of the fall in launches from 3,489 units in March to 1,158 units in April. Most of the sales were from earlier launches and it was also noted that developers has lowered their prices in April when compared to March in response to increased competition from increased completions as well as lower demand as a result of the cooling measures.  Meanwhile, 172 EC units were sold in April down from 279 units in March. There were no new EC projects were launched in April. The resale market also saw only 539 transactions. Looking ahead, sales volume is expected to stabilise at 1,500 to 2,000 units (excluding ECs) each month, with a full-year total of 15,000-18,000 private homes, compared to 22,197 units in 2012.

(Source: Business Times)

Five 99-year plots yielding 2,700 homes released under GLS programme for H1 2013

The first is a plot at Tampines Avenue 10 which is under the confirmed list. The site with a maximum GFA of 515,000 sq ft that can yield 530 units is expected to draw three to six bidders with a top bid of $400-470 psf ppr. It is considered less attractive than the other four sites on the reserve list since it is not near an MRT station, and faces competition from nearby Q Bay Residences  and another six other nearby sites which have yet to be launched. The tender will close at noon on July 2.

The second is the Toa Payoh Lorong 6 site which has a maximum GFA of 458,000 sq ft that can yield about 550 units is expected to draw five to 12 bidders with a top bid of $680-920 psf ppr if triggered for sale since it is near Braddell MRT station and schools such as CHIJ Toa Payoh and Pei Chun Primary School in addition to being located in a mature estate.

Next, the Siglap Road site which has a maximum GFA of 737,000 sq ft that can yield around 780 units is expected to attract at least seven bids with a top bid of $550-860 psf ppr if triggered for sale given its proximity to East Coast Park and Victoria School.

The Geylang Avenue 1 site which has a maximum GFA of 188,000 sq ft that can yield 215 units is expected to attract seven bids with a top bid of $570-690 psf ppr since it is located near Aljunied MRT station and there are few private developments in the area.

Lastly, the site at Prince Charles Crescent with a maximum GFA of 564,000 sq ft that can yield 650 homes is expected to attract three to five bidders with a winning bid of $850-1,070 psf ppr since it faces competition from other GLS sites in the region which has been recently sold as well as another Alexandra View site available on the reserve list.

(Source: Business Times)

Corals at Keppel Bay to be launched at $1,800-3,000 psf

The first 100 units at Corals at Keppel Bay condo, a 99-year leasehold 366 unit condominium project, is said to be priced at $1,800-3,000 psf. It will consist of one, two, three and four-bedroom units (600-3,600 sq ft) and eight penthouses (4,800-7,800 sq ft) in 11 four-to-ten-storey blocks. The first two unit types constitute 45% of the units in the project. Absolute prices start from $1.31 million for a 624 sq ft one-bedroom unit to $10.7 million for a four-bedroom unit around 3,600 sq ft.

(Source: Business Times)

99-year Stratum condo at Pasir Ris launched for sale

170 units of the 380 units at the 99-year leasehold Stratum condo project at the corner of Elias Road and Pasir Ris Drive 3 has been launched at $900 psf, with absolute prices starting from $540,000 to $550,000 for a studio unit. The five-storey condo project consists of studio units, one to five-bedroom apartments, penthouses with three to five bedrooms and four-bedroom dual key units in 14 blocks. Sizes range from 432 sq ft for a studio unit to 2,446 sq ft for a five-bedroom penthouse.

(Source: Business Times)


Reits not the sole reason for increasing retail rents

While increasing retail rents have often been attributed to Real estate investment trusts (Reits) in the retail sector given their ownership of many prime malls in Singapore, market demand may be another reason for the increasing retail rents. Furthermore, it is not only malls owned by Reits that have seen increased retail rents. Reits can also offer tenants benefits in doing promotions or upgrading facilities.

Looking ahead, the retail Reit sector may be affected by the fall in retail sales by 2.7% in February despite the growth in tourist arrivals by 9.1% in 2012 from 2011, the growth in consumer price index by 3.5% from February 2012 and the growth in population by 2.5% in 2012. This can be seen in how the retail and office property prices increase are not matched by corresponding increase in rents. Other factors that may affect the sector is also an increase in supply of malls, and retail problems of labour given the tighter foreign manpower policies.

(Source: Business Times)

Marina Bay Financial Centre, the first integrated development in the CBD sees success

Being the first integrated development in the CBD which offers a work-live-play environment, MBFC sees success with its Towers 1 and 2 being 100% pre-let upon completion, and its Tower 3 over 85% leased. 48.9% of Tower 3’s total NLA is taken up by financial institutions, 14.9% by legal firms and 7.5% by energy and natural resources firms. Its anchor tenant DBS which occupies 18 of Tower 3’s 46 storeys is also a stakeholder in the tower. The residential component is also successful with all 428 units at Marina Bay Residences and 88% of the 221-unit Marina Bay Suites sold. MBFC’s success can be attributed to MAS’s liberalisation of the banking sector, its waterfront location, the 179,000 sq ft retail component of MBFC as well as its proximity to attractions such as the Singapore Flyer, Esplanade-Theatres on the Bay and the Marina Bay Sands integrated resort.

(Source: Business Times)

Net allocation of JTC land and facilities falls in Q1

JTC’s net allocation of prepared industrial land (PIL) fell by 51% in Q1 2013 to 29.8ha from 61.1 ha from Q4 2012. The fall in net PIL allocation is accompanied a 22% fall in gross allocation to 62.1 ha and a 77% increase in returns to 32.3 ha. The logistic sector makes up the biggest proportion of gross allocation in PIL in Q1, with 30% or 18.9 ha while manufacturing sector make up12.5 ha of land of 39% in returns.

Meanwhile, the net allocation of ready-built facilities (RBF) fell from -3.3 ha in Q4 2012 to-3.8 ha in Q1, accompanied by a fall in occupancy rates by 0.2% to 95.3%. Gross allocation saw a 65% increase to 16.1 ha in Q1 while returns rose by 52% to 19.8 ha. The net allocation for the flatted factory segment fell to -0.47 ha from 0.4 ha in Q4 2012 while the standard factory segment saw an increase to 0.17 ha from -0.83 ha in Q4 2012.

(Source: Business Times)

49-room Berjaya Hotel in Duxton Road sold at $50m

The property at Nos 80-87 Duxton Road, which includes the 49-room Berjaya Hotel, an office and a restaurant housed in eight adjoining three-storey-plus-loft conservation shophouses with a total GFA of 32,000 sq ft, has been sold with vacant possession at $50 million. The 9,558 sq ft site has remaining lease tenure of 74 years.

There has been increase in shophouse transactions by 34% from Q4 2012 to $460.1 million in Q1 2013 as a result of the January cooling measures which targeted the residential and industrial sector. This is likely to continue in Q2 2013, with four shophouses with a 12,000 sq ft GFA sitting at Nos 97, 98, 99 and 100 Duxton Road on a 4,000 sq ft site being sold for $21.6 million and 999-year leasehold three-storey-plus attic 82 Amoy Street with a 8,200 sq ft GFA sitting on a 2,770 sq ft site being sold for $16 million.

(Source: Business Times)

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