Residential

Transaction volumes down for apartments worth $10m and more

Only 33 luxury condos and apartments worth $10 million and above were sold in the first 10 months of 2012, compared to 57 units in the same period a year ago. The 33 units are worth a total of $449.6 million, 44% down from the $797.5 million in the same period last year. This is likely due to the introduction of the ABSD in December last year. The ABSD is likely the cause for the fall in the proportion of foreign buyers of properties worth $5 million or more from 38.8% in 2011 to 26.6% in the first 10 months of 2012. The proportion of companies’ share also fell from 15.8% to 4.3% in the same period. The proportion of Singaporean buyers and PR buyers, however, increased from 23% and 22.3% to 36.9% and 32.3% respectively. While foreign buyers are likely to return to the market, there may not be as many since there more cooling measures might be introduced.

(Source: Business Times)

HDB resale market stabilising

The annual Resale Price Index (RPI) growth had fallen from 14.1% in 2010 to 10.7% in 2011 and this trend is likely to continue since it is 3.9% in Q1 to Q3 of 2012. This reflects stabilisation in the HDB resale market. While the quarterly RPI growth in Q3 is 2%, much of the impact of the large supply of BTO flats can only be felt in the next 2-3 years when they are completed.

Separately, only 2% of the 178,000 applications for HDB loans were rejected in the first three quarters of the year. This was because the applicants had taken two or more HDB loans prior to their current applications. Nevertheless, the success rate for appeals for HDB loans was at a healthy 36%.

(Source: Business Times)

Transaction volumes down in October after cooling measures

1,948 private homes excluding ECs were sold in the primary market (76% from the Outside Central Region) in October, a 25.7% fall from the figure in September, possibly as a result of the new restrictions on housing loans. However, this is not a cause for worry since it still exceeded the 1,633 units launched in October. 19,792 units have been sold in primary market in the first 10 months of 2012 but sales are likely to slow to 1,300-1,500 units each in the next two months, though the full-year tally is likely to hit a record high of 22,000 to 24,000 units. Only 659 units of the 1,633 units launched in October were from new projects, suggesting that the developers were cautious about the effect of the cooling measures.

Meanwhile, 676 ECs were sold in October, 4.5 times the 150 units sold the month before. There were 777 units launched in October, the first month to see EC launches since June. The sales in October brought the total sold in the first 10 months to 3,493 ECs, compared to the 2,883 units sold in 2011 and the 1,052 in 2010.

Including ECs, 2,624 units were sold in October, a 5.3% from the 2,771 units in September, but a 59.7% increase from October 2011.

(Source: Business Times)

Four 99-year sites released in suburban areas to yield 2,045 private homes

The first is a 198,890.2 sq ft confirmed-list site located at Ang Mo Kio Avenue 2, which is expected to yield 680 units with its 696,123.6 sq ft maximum GFA.  Bidding for the site is likely to be competitive since it is well located in an established estate surrounded by terraced houses with no recent launches, near the upcoming Mayflower MRT station, and the CHIJ St Nicholas Girls’ School. The site is expected to draw seven to 15 bidders with a top bid of $$390-452.5 million or $560-$650 psf ppr.

The second is another confirmed-list site, a 240,661.7-sq-ft site located at Jurong West Street 41 opposite the Jurong Lake District, near Lakeside MRT Station. It can potentially generate 660 units with its 673,853.1 sq ft maximum GFA. It is expected to attract five to 13 bidders, with a top bid of $364-391 million or $540-580 psf ppr.

The bidding results for this site would also likely determine future bid prices for the adjacent reserved-list plot which has been launched together. The reserved-list plot is expected to yield 545 units and attract five to seven bidders with a top bid of $370.6-404.3 million or $550-600 psf ppr.

The last is a 95,346.7-sq-ft mixed residential and commercial site at Yishun Ring Road released under the confirmed list. It can support 160 units with its 266,970.8-sq-ft GFA. The site is expected to do relatively well with three to five bids given its proximity to the Yishun town centre, its mixed use status and the lack of private housing in the region.

(Source: Business Times)

Bukit Timah multiple-lease residential sites attracts $73.8 m top bid

The 1.02-hectare site located at Jalan Jurong Kechil in Upper Bukit Timah with 60-year, 45-year and 30-year lease tenure options attracted a total of 23 bids – 22 for the 60-year tenure, and one for the 45-year tenure, with the top bid of bid $73.8 million or $481.51 psf ppr from World Class Developments (North), a subsidiary of Aspial Corporation. The large number of bidders was unexpected since demand for properties with shorter leasehold properties is uncertain. The large number of bids suggests that developers are confident of demand, particularly from buyers who are retired. The high price and the number of bids could also be due to the attractive location of the site, being in an established residential estate near the nature reserve. The estimated breakeven cost and selling cost are $700 psf and  $900 psf to $1,100 psf respectively.

(Source: Business Times)

Commercial

M+S release details for Bugis project

The second development project by M+S is DUO, a 99-year mixed development project with two towers of residential, retail, hotel and Grade A office space in Bugis. The project which will be directly connected to the Bugis MRT station will have a 1.8 million sq-ft GFA, of which 45% or 810,000 sq ft will be allocated to the 50-storey residential tower boasting 660 units. 15% of the GFA or 270,000 sq ft will be allocated to a 300-room, five-star hotel with the remaining 40% or 720,000 sq ft allocated to offices and shops (mainly offices). These will be found in the 39-storey tower. M+S plans to complete the project by Q2 2017, and launch the residential units in early 2013. It is expected to enjoy high demand for both the residential and office components.

(Source: Business Times)

MBFC’s Tower 3 secure new leases

The overall commitment level at Tower 3 of Marina Bay Financial Centre (MBFC) has hit 76% or almost 960,000 sq ft with new leases from Lego Singapore and the international legal firm Milbank, Tweed, Hadley & McCloy LLP. Tenants who have already been secured prior to this includes DBS Bank, Ashurst LLP, Clifford Chance, Wong Partnership, Mead Johnson and McGraw-Hill. The 46-storey tower offers 1.3 million sq ft of prime Grade A office space. The retail component of MBFC, the 179,000-sq-ft Marina Bay Link Mall is 100% leased.

The net increase in demand for islandwide office space in Q3 was 764,237 sq ft, bringing the total figure for Q1 to Q3 to 1.69 million sq ft, compared to 2.3 million sq ft.  There is an estimated 1.4 million sq ft of office space that would be built in 2012, compared to three million sq ft last year. 2.6 million sq ft of upcoming office space in 2013 will be from the Asia Square Tower 2 in the CBD, Jem next to Jurong East MRT station and The Metropolis in Buona Vista.

(Source: Business Times)

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