Residential

Property cooling measures discourage foreign buyers

According to a caveats analysis by DTZ, Singapore PRs and foreigners continued to buy fewer private homes for the second consecutive quarter in Q2 2013, while Singaporeans’ private home purchases increased by 14.4 percent in Q2 compared to Q1 2013. PRs bought just 348 units in the secondary market in Q2, 30.3 percent less than Q1; yet PRs bought 525 units in the primary market in Q2, 4.2 percent more than Q1.

(Source: Business Times)

HDB data points to easing for resale market

As the latest round of cooling measures take effect, the pressure on the public housing resale market has apparently eased with the lowest price growth for the past four years. HDB’s data has showed the Resale Price Index (RPI) increased by 0.5 percent to reach 206.6 in Q2, compared to the 1.3 percent increase in Q1. Christine Li, head of research and consultancy at OrangeTee, said that despite the slight increase in the RPI in Q2, market sentiment has been weighed down by the January cooling measures.

(Source: Business Times)

CapitaLand warned of headwinds for residential property market

In its candid assessment of Singapore residential property market, CapitaLand predicted a moderation in prices and sales volume of residential property due to increasing impact of various property measures, which include the 60 per cent cap on total debt servicing ratio that financial institutions must apply before issuing property loans. CapitaLand was reported to be responsive to market changes and had introduced discounts at its projects d’Leedon, Interlace and Sky Habitat in Bishan.

(Source: Business Times)

ECs could see surge in demand soon: SLP

According to property agency SLP International, due to the three main reasons of runaway private property prices, a new government policy, and supply issues could unintentionally lead to a surge in the demand of executive condominiums (ECs). More demand is being channeled towards ECs as the growth in private condominium and apartment prices continued to outpace ECs.

(Source: Business Times)

Commercial

Pockets of weakness surfaced in firm property market

The latest official stats on Singapore’s private property markets have shown the appearance of pockets of price falls, including industrial space and some residential categories, although the property market remains firm as a whole. The once-hot industrial space category fell substantially. Particularly, the price index for multiple-user warehouse space decreased greatly by 5.9 percent in Q2 from Q1 of 2013, compared to the 10.6 percent quarter-on-quarter increase in Q1. This put a stop to a rally that had spanned 14 consecutive quarters after the index bottomed in Q3 2009. Consequently URA’s All Industrial price index decreased by 0.6 percent in Q2, in contrast to the 4.5 percent increase in Q1.

(Source: Business Times)

Big Hotel up for sale                                                                                                      

The Big Hotel along Middle Road has been put on the market and is expected to raise $260 million, which translates to $844,000 per room for the 16-storey freehold hotel with 308 rooms. So many offers have been received that Colliers International has been appointed the marketing agent for the property and is conducting an expression of interest exercise which closes at 3pm on August 6. The property group behind Big Hotel was reported to have intentions to develop more hotels in places like Malaysia, Vietnam, South Korea, Australia and Japan, either from scratch or by converting existing buildings into hotels.

(Source: Business Times)

Woodlands industrial site top bid draws $72.7m

Urban Redevelopment Authority’s tender for a 30-year leasehold industrial site in Woodlands Industrial Park E9 has attracted ten bidders. The highest bid was $72.69 million or $161.02 psf ppr from Incorporated Woodlands Pte Ltd – a unit of Incorporated Builders Group involved in construction and property development. The second highest bid was $107.17 psf ppr from Lian Beng Group unit Wealth Land. The lowest bid was $55.38 psf ppr from NSS Development. The site is 1.68-hectare wide and is zoned for Business 2 use with an integrated heavy vehicle park for a minimum of 80 heavy vehicle parking lots. The minimum of 80 heavy vehicle parking lots, which shall be excluded from the computation of the development’s maximum gross floor area (GFA) of 451,422 sq ft, can be sold as a single strata lot. It is also the first time the state has sold an industrial site with the heavy vehicle parking lots not counted as part of GFA, and the first time the developer has been allowed to have a separate single strata lot for the heavy vehicle parking lots.

(Source: Business Times)

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