Residential

Sentosa bungalow asking for $2,325 psf

A sea-facing bungalow at Sentosa is asking for $2,325 psf. An expression of interest exercise has been launched. The property which consists of 10,754 sq ft of land has a 99-year leasehold tenure that starts from 2005. The building has two storeys and a basement. Steve Tay from Newsman Realty believes that the unique location of the bungalow and its large size will be key selling points.

(Source: Business Times)

HDB resale prices fall by 0.4% in Q2

According to data from HDB, resale prices have fallen by 0.4% in Q2 this year from the previous quarter. Market experts believe that prices will soon stabilise as the price fall in Q2 this year was the most moderate in the past eight quarters of decline. As resale transaction increases 27.8% quarter-on-quarter to 5,286 units, market experts believe that the low prices are attracting buyers. Mohammed Ismail from PropNex believes that prices will continue to fall despite showing signs of stabilising. Nicholas Mak from SLP International added that the resale price index may fall by up to 3.5% for the whole year. He believes that HDB resale prices may start increasing if the government cuts the supply of BTO flats.

(Source: Business Times)

High vacancy rate due to oversupply of private homes

Vacancy rates have increased due to an oversupply of private homes. Based on data from the URA, the volume of private home transactions in the primary and secondary markets have also increased in Q2 from Q1. Ong Teck Hui from JLL believes that given the current rate of price declines, it may take another one to two years before a 10 to 15 percent fall in prices is observed. The vacancy rate for completed private homes has increased to 7.9% in Q2 from 7.2% in Q1. Wong Xian Yang from OrangeTee said that the increase in vacancy rate was most extensive in the north-east region of Singapore, where the vacancy rate had increased by 6% in Q2 from the previous quarter.

(Source: Business Times)

Commercial

Q2 central region office rental index falls by 2.6%

In Q2 this year, URA’s central region office rental index fell by 2.6% from the previous quarter. This marks the first drop after eight consecutive quarterly increases. Not only so, this was the steepest fall in the index since Q4 2009. According to Christine Li from Cushman & Wakefield, the declining economy may have resulted in the fall in rental index in the central region. Li added that about four million sq ft of prime office spaces will be completed in 2016, thus pushing rental prices down. Nonetheless, the net increase in office demand doubled to 38,000 sqm in Q2 this year from 19,000 sqm in the previous quarter.

(Source: Business Times)

Q2 industrial prices and rentals each fall by 0.7% from Q1

Data from JTC showed that industrial prices and rentals have both fallen by 0.7% in Q2 from Q1 this year. This translates to a 0.9% fall in industrial prices year-on-year, and a 2.7% fall in rents year-on-year, in Q2 this year. The fall in prices and rentals had been attributed to an increase in industrial land supply and a weakening economy. Desmond Sim from CBRE added that the labour crunch had also impacted the market for industrial spaces. Occupancy rates are expected to be pushed according to JTC as more industrial spaces will be provided in 2015 and 2016. Particularly in 2016, 2.8 million sqm of industrial land is expected to be completed.

(Source: Business Times)

158 Cecil Street sold for $2,100 psf

According to the Business Times, the 14-storey building on 158 Cecil Street has been sold for $2,100 psf or $240 million. The building has a lettable area of 115,000 sq ft and has a balance lease term of about 65 years. The building had undergone a major revamp several years ago. Bank of India and Zurich insurance are expected to retain its existing premises in the building.

(Source: Business Times)

Retail rents expected to fall in H2

In the second half of the year, retail rents are expected to fall as vacancy rates shoots up, said Knight Frank. Not only so, an increase in supply of retail space in major malls over the next four years is expected. To generate revenue while mall owners try to search for long term tenants, mall owners will be issuing short-term leases. Knight Frank predicts that the average rent in Singapore will fall by 3 to 5% due to the expected increase in supply of new retail space this year. About 3.7 million sq ft of net lettable retail space is expected to be completed from 2015 to 2019.

(Source: Business Times)

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