29-May-2009

Developers readying for launches as activity rises. More developers are preparing to launch new properties in response to a marked improvement in sentiment in Singapore's property market, experts say. Activity has picked up in the past two to four weeks, they observe. Some developers are now rushing to prepare projects for launch, but they face some inevitable delays. They may lack promotional materials, for instance. Starting today, Frasers Centrepoint Homes will be releasing more units at its 302-unit freehold Martin Place Residences in the River Valley area. It recently sold more than 100 units of the project after it cut prices. The units were released at $1,260 per sq ft (psf) to $1,700 psf, compared with $1,700 psf to $2,000 psf last year. Chief operating officer Cheang Kok Kheong said prices ranged from $1.5 million for a two-bedder to about $2 million for a three-bedder. He said Frasers was aiming to sell the remaining units at $1,350 psf to $1,700 psf. Other weekend launches include Balcon East in Upper East Coast Road. Tong Eng Group started sales at its 37-unit development on Thursday last week and managed to sell 28 units. Prices ranged from just below $500,000 to $1.39 million, with the one- to two-bedders costing about $850 psf, and three-bedders at $780 psf.

29-May-2009

Consider top up rule when selling below valuation Sale rule. Sliding flat prices may force some to refund with cash. Owners of Housing Board flats, already hit by a softening market, may now have to stump up cash if they are selling their properties below valuation. This is the result of a longstanding rule by the Central Provident Fund Board which property agents say was enforced loosely until recently. Under this rule, a property owner who had used his CPF funds to pay for his property is required to refund the principal withdrawn and interest accrued into his CPF account after settling any outstanding debt. If there is a shortfall, he needs to make good on that amount if he is 'unable to provide good reasons for selling his flat at a price below the fair market value'. This clause was not an issue when the market was booming as recently as a year ago, but could hurt transactions now that property prices are sliding and more flats are being sold below valuation.

26-May-2009

Analysts upgrade property stock calls. Private residential prices now expected to rise next year. Property analysts now expect private home prices to climb again next year - a turnaround from previous forecasts that they would continue to slide into 2010 - as there is now a sense that the residential market has hit bottom. And amid this new- found optimism, analysts' recommendations on several property stocks have been upgraded. The residential price index chalked up its worst-ever quarterly decline of 14.1 per cent in Q1 2009, according to official figures from the Urban Redevelopment Authority. 'A bottom has been established for the housing market, as price cuts have catalysed latent demand and accelerated inventory clearance, in our view,' said Deutsche Bank analysts Gregory Lui and Elaine Khoo in a note yesterday.

26-May-2009

Firm demand boosts sales of private homes. Some developers have raised prices as a result . Developers continued to report encouraging private home sales last week, and some have upped prices on firmer demand. BelleRive on Keng Chin Road and Martin Place Residences on Kim Yam Road are among the projects where prices have been raised. BelleRive's average price is now 13 per cent higher than when it was previewed in mid-April. Frasers Centrepoint sold 60 more units last week at Martin Place Residences; new units were released over the weekend at prices that were about 5-7 per cent higher.

26-May-2009

Developers dangle rent guarantees. Buyers respond well to scheme introduced at some projects. Some developers here are turning to rental guarantees to lure buyers in the current down-market. Under such schemes - which are offered only for certain units within selected projects - developers help buyers secure tenants, and also ensure that the owner gets a minimum pre-determined yield. Far East Organization, for example, offers rental guarantees for selected units in selected projects such as Orchard Scotts, Vida, River Place, Tanglin View and Icon.

24-May-2009

Location is key if buying to rent out. Properties in prime areas or near MRT stations are more lettable and their capital values hold better. Now that rents for condominiums are falling, investors looking for buy-to-let homes should be mindful of declining rental yields. 'Rentals in the private housing market are now falling at an estimated average rate of 3 per cent per month, so expect your rental yields to continue falling.' Still, falling yields shouldn't be an issue over the longer term. 'There will be short-term adjustments, but long-term, yields tend to be stable at 2.5 to 3.5 per cent on a net level.' Low rental yield means either lower rental value per sq ft (psf) per month or higher capital value per sq ft. For now, the fall in rents looks set to continue and even gather pace. Urban Redevelopment Authority (URA) data shows private home rents fell 8.5 per cent in the first quarter - the largest quarterly fall since the fourth quarter of 1998. Rents for non-landed prime homes fell the most, by 10.3 per cent.

21-May-2009

MND will ensure property sector remains stable. It will also help build capabilities of construction firms. The government will continue to monitor the property and construction markets and adopt more measures to keep them stable if needed, said National Development Minister Mah Bow Tan yesterday. The Ministry of National Development (MND) will also introduce measures to build up the capabilities and productivity of construction firms, and make the industry more attractive to Singaporeans, he added. 'As we help Singaporeans tide over the current economic uncertainty, we will press on with our long-term plans to make Singapore an attractive and highly liveable city,' he highlighted in his ministry's addendum to the President's address in Parliament.

19-May-2009

Interest absorption greasing market - selectively. Is the interest absorption scheme (IAS) helping to grease home sales? The answer seems to be yes, if there is no price premium charged by developers for the IAS. However, if developers charge more in exchange for interest absorption, then the buyers' profile may decide whether they opt for IAS, industry players say. Generally, buyers in projects targeted primarily at owner occupiers, such as suburban, mass-market condos prefer to buy on normal progress payment scheme (NPS) rather than IAS, under which they may pay only the initial 20 per cent with no further payments until the project is completed. For example, slightly over a quarter of those who bought 626 units at Caspian near Jurong Lake since its release in February and 100 units at Waterfront Waves in the Bedok Reservoir area relaunched at lower prices since March have opted for IAS. At Double Bay Residences in Simei, the proportion of IAS buyers is said to be higher, at 40-50 per cent. At Mi Casa in Choa Chu Kang, no buyer has opted for IAS. Those who bought on IAS in these projects paid 2 or 3 per cent more for their units. The thinking is that mass-market home buyers are usually more price sensitive and prefer NPS if it costs them less, say property pundits. Projects that have drawn investors may see more buyers inclined to opt for IAS even though there is a price premium. Here, again, the quantum of premium may matter.

18-May-2009

CapitaLand sells 24 more The Wharf Residence units. About 80% of buyers for the 134 units sold to date are Singaporeans. Capitaland has sold another 24 apartments over the weekend at The Wharf Residence at Tong Watt Road, off Mohamed Sultan Road, the listed property group said in a release yesterday. This comes after the sale of 85 apartments on Friday following a relaunch of the 999-year-leasehold project. The apartments are priced at between $1,300 and $1,600 per square foot (psf) inclusive of a package comprising stamp duty absorption and an interest absorption scheme. Buyers who do not opt for this package will enjoy an 8 per cent discount. Last year, CapitaLand priced apartments in the development at $1,500 to $1,900 psf, again inclusive of the stamp duty/interest absorption package. However, buyers were not given the choice of not opting for this package. With the latest sales achieved up to 4pm yesterday, CapitaLand has sold 134 of the total 173 apartments in the project. About 80 per cent of buyers for the 134 units sold to date are Singaporeans. The rest are from Indonesia, Malaysia, China, Japan, Canada and Vietnam, said CapitaLand Residential Singapore CEO Patricia Chia.

17-May-2009

Condo style HDB flats selling well. But at prices of $500,000 to $730,000, the Design, Build and Sell Scheme units don't come cheap. Although the recently launched condo- style HDB project offers something more than a regular HDB flat, its location - more than anything else - was what sealed the deal. 'Facilities-wise, it can't beat The Peak and Natura Loft,' he said, referring to two similar projects. 'It's the location. It is literally just across the road from my in-laws'.' Thanks to buyers, Parc Lumiere is nearly sold out, even though its first-come, first-served sale method meant that many buyers had to brave the heat and queue for hours before they got to book a unit. However, those keen on a condo-style HDB flat - or what HDB terms a Design, Build and Sell Scheme (DBSS) flat - need not fret because there are still units available. The 360-unit Parc Lumiere, for instance, has 30 five-room units left for sale, while the 480-unit Natura Loft in Bishan has more than 100 five-room units left. DBSS projects are designed, built and sold by private developers.

16-May-2009

Demand for mid- to mass-market units sees more homes launched. Sales of new private homes continued to boom in April, almost matching the frenetic pace of activity set in both February and March this year. Some 1,207 units were sold during the month as more were launched by developers keen to take advantage of increased buying momentum, partly fuelled by stock market rises. This compares with sales of 1,220 units in March and 1,332 in February. Last month, developers launched 1,083 new homes, up from 832 in March, according to data released yesterday by the Urban Redevelopment Authority. The latest figures mean that developer sales for the first four months of the year equate to around 88 per cent of all such sales last year. The two best-selling projects in April were Mi Casa in Choa Chu Kang and The Arte in Jalan Datoh. Buyers picked up 115 units of Mi Casa at a median price of $639 per sq ft (psf), while 110 units of The Arte were sold at a median price of $903 psf. Suburban projects remained the most popular. Some 523 suburban units were sold during the month, down from 559 units in March and 840 in February.

16-May-2009

Upmarket homes start to sell as momentum rises. Sales in core central region get big boost in April, soaring to 19-month high of 322 units. The high-end property market - which has remained subdued since the beginning of the year even as activity increased in the mass-market segment - started to move in April. According to data from the Urban Redevelopment Authority (URA), some 1,207 units were sold by developers last month. And unlike in the first three months of the year, homes in Singapore's core central region (CCR) - which includes the prime District 9, Marina Bay and Sentosa - sold as well, with transaction volumes there soaring to a 19-month high of 322 units. In contrast, only 133 homes were sold in the CCR in March.

16-May-2009

More property launches on buying interest. CapitaLand releases units at The Wharf Residence, Frasers Centrepoint to launch Woodleigh project in July or Aug. Developers are riding the wave of buying interest to launch more units. CapitaLand yesterday released 100 two and three-bedroom units at The Wharf Residence, a 999-year leasehold condominium near Mohamed Sultan Road which comprises 173 apartments and 13 shophouses. The group sold 85 units - mostly two-bedders - at an average price of between $1,300 and $1,600 per square foot (psf). Sizes of two-bedroom units start at 1,012 sq ft. Assuming a price of $1,300 psf, one would cost about $1.32 million. Some of the 100 units released yesterday were the remainder from an earlier launch. According to Urban Redevelopment Authority (URA) records, CapitaLand introduced 80 units to the market in July last year and sold 24 until September that year at median prices above $1,500 psf.

14-May-2009

Weekend launch for BelleRive off Bt Timah. Sing Hldgs to price it between $1,325 and $1,464 per sqft. Sing Holdings is launching its latest residential development, BelleRive, this weekend at indicative prices of between $1,325 and $1,464 per sq ft. The listed developer is also extending an interest absorption scheme to all buyers. BelleRive, located off Bukit Timah Road between Balmoral and Robin roads, is a 15-storey apartment tower with a total of 51 units. Its two and three-bedroom units range from 958 sq ft to 1,679 sq ft. The two penthouses, at 2,734 sq ft and 3,735 sq ft, each have a private roof garden, swimming pool and pool deck. The development boasts fittings and finishes from notable brands including kitchen appliances by Gaggenau and imported kitchens by Hoffen. Project facilities include a swimming pool, barbecue area, children's playground and gymnasium. Project completion is scheduled for end-2010. Sing Holdings chief executive Lee Sze Hao said yesterday that about 50 per cent of the freehold project was sold during a recent preview.

13-May-2009

Goldman sees S pore home prices rising in 2010. It reverses earlier forecast of 10% slide next year, upgrades CDL to 'buy'. Goldman Sachs is now projecting a 5 per cent gain in Singapore private home prices next year, reversing its previous forecast of a 10 per cent fall in 2010. It has also upgraded City Developments, which it terms 'the Singapore residential bellwether', to a 'buy' rating from 'sell' previously. 'The recent pick-up of transaction volumes in the primary residential market is a harbinger of price stabilisation being just around the corner, in our view,' the US bank said in a report dated May 12. It expects the residential property sector to stabilise by end-2009, ahead of the office and retail sectors, which it sees stabilising around the end of next year. Goldman Sachs sees the average luxury residential capital value sliding some 38 per cent for the whole of 2009, on top of last year's 36 per cent drop, and the average islandwide 99-year leasehold residential capital value easing 13 per cent in 2009, similar to the 12 per cent fall last year. Much of these price declines have already taken place year to date, and Goldman Sachs sees price stability setting in by year-end.