Residential

Private home and HDB resale flat prices decrease in Q1

The government’s flash estimates showed that prices of private homes and HDB resale flats declined in 1Q 2014. This is expected to continue for the rest of the year, mostly due to the cooling measures and increasingly competitive pricing by developers. Resale flat prices’ decrease of 1.5 percent was for the third consecutive quarter, which was believed to prevent HDB upgraders to move to private property. The index for private residential property also decreased 1.3 percent, compared with the 0.9 percent decrease in 4Q2013. Sale transactions went down from 4,260 in the last quarter to only 1,676 caveats lodged this quarter.

(Source: Business Times)

More marketing tools to attract potential buyers

As fewer projects could move more than half of their units in the month of their launch, developers and marketing agencies are adopting more marketing tools to draw more potential buyers. For instance, developers may have multiple marketing agencies for one project, offer higher commission to agencies or discounts to buyers for certain periods, while property agencies hold more seminars to attract crowds.

(Source: Business Times)

Sales at The Santorini were disappointing

Sales at the Mediterranean-inspired Tampines condominium The Santorini were reported to be disappointing. Only 80 out of the 200 launched units were sold, making up only 40 percent. Analysts said that this could show the market is not favorable towards mass-market projects, especially low-quantum compact units which were affected by the Total Debt Servicing Ratio (TDSR) framework that lower the loan-to-value limits for buyers with existing home mortgages. Half of The Santorini’s units are one and two-bedders.

(Source: Business Times)

Spring Grove for en bloc sale

Spring Grove in the prime Grange Road area can now be sold en bloc, after it acquired the requisite 80 percent consensus from its owners. 264 out of 325 units have signed the collective sale agreement, as reported on March 23, which translates to 81 percent of the condo’s total share value and strata area. Its five-day cooling-off period after the approval has ended. The sales agent for the deal Knight Frank said that the unit owners will receive an average $2,600 psf for two- to four-bedroom apartments and penthouses.

(Source: Business Times)

Jurong condo’s price set at $1,250-1,350 psf

Lakeville, the upcoming 696-unit condominium project in the Jurong Lake District by MCL Land, will be launched with an average price of $1,250 to $1,350 psf – the early-bird pricing on the balloting day to attract potential buyers. MCL Land, however, has yet to decide on how many units to launch because it will depend on the demand. The marketing agent for the project is Huttons. Lakevill is located on a 240,654 sq ft site with a 99-year lease. MCL acquired it in 2013 for $439 million, or $651 psf ppr.

(Source: Business Times)

Commercial

Reit benchmarks could be the reason for increasing retail rents

Statistics has proved that real estate investment trusts (Reits) neither own the majority of retail space nor prime malls in Singapore. Hence, it may not hold true that Reits cause retail rents to go up. Yet, some property consultants said that some landlords use the listed Reits as benchmarks for their rates, thus giving Reits their indirect pricing power. This effect is called ‘herding’. More specifically, R’ST Research director Ong Kah Seng said that since information is made transparent in quarterly reporting to shareholders, commercial or industrial property landlord may make back-calculations for their potential rentals.

(Source: Business Times)

Industrial building in Kallang up for sale

A five-storey industrial building located at 12 Kallang Way on a 51,264 sq ft leasehold site is reported to be up for sale. Its owner is asking for offers higher than $25 million, or about $213 psf on a gross floor area (GFA) of 116,940 sq ft without having maximized its 2.5 plot ration. The property has a 34 years remaining in its lease term. Together with its unutilised 11,220 sq ft of GFA, the asking price is $195 psf ppr.

(Source: Business Times)

High take-up for office leasing market

The office leasing market was reported By DTZ to witness strong take-up for 1Q2014. The average gross rental rates in the central business district (CBD) increased between 3.9 to 4.5 percent quarter-on-quarter from higher occupancy rates. Average monthly per square foot rents were $8 in Shenton Way, Robinsons Road and Cecil Street, and were $11.50 in Marina Bay. The occupancy rates for these two areas were 97.9 percent and 88.1 percent respectively, which increased from last quarter. DTZ expected the rents in CBD to further increase 10 to 15 percent for 2014.

(Source: Business Times)

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