Property Market Sentiments

The changing faces of property new launch

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Jurong condo sales better than expected

180 Lakeville units sold; project in Commonwealth also unveiled

Published on Apr 05, 2014


LAKEVILLE: Buyers at the showflat for the 695-unit Jurong development. Developer MCL Land released more units due to demand and was “very happy” with the turnout. Most buyers were Singaporean. -- ST PHOTO: NG SOR LUAN
COMMONWEALTH TOWERS: A planned sky terrace at the 99-year leasehold project, which will be linked to Queenstown MRT station. -- PHOTO: HONG LEONG


By Rennie Whang

BUYERS flocked to get a piece of the action at a new Jurong condominium while an upcoming project in Commonwealth Avenue was unveiled on a busy day for property yesterday.

Much of the buzz was at the preview of MCL Land's Lakeville condominium in Jurong West Street 41, but Hong Leong Holdings grabbed some of the spotlight as well with its announcement.

The balloting tent for the 695-unit Lakeville, which comprises six 16-storey blocks, was filled with more than 150 buyers and 50 agents yesterday.

MCL Land chief executive Koh Teck Chuan said the firm had initially released 150 units but released a further 50 as sales were better than expected.

In all, 180 units were sold at $1,300 per sq ft (psf), with most of the buyers Singaporean. About two-thirds of the units sold were one- and two-bedders.

Prices range from $736,000 for a 560 sq ft one-bedder, to $2.67 million for a 2,271 sq ft four-bedroom penthouse.

Mr Koh noted that 400 cheques were balloted yesterday, adding: "Considering the market, we are very happy with the turnout."

The last condominium launch in the area was J Gateway last July, also developed by MCL Land. Most of its 738 units sold in one day at an average of $1,480 psf.

The low number of residential projects in the area compared with Sengkang and Punggol has led to much pent-up demand, said Mr Donald Han, managing director of Chesterton Singapore.

He added that Lakeville's $1,300 psf price tag reflected weak market sentiment.

The Urban Redevelopment Authority said on Tuesday that private home prices dipped 1.3 per cent in the first quarter from the fourth quarter last year.

"It could be launched at more than $1,300 per sq ft. But because of general market sentiment, developers would rather play safe and launch at a lower price," said Mr Han.

He noted that MCL Land seems to have "cornered the market fairly well, they understand the market in the area... We should see a good first phase launch."

Century 21 chief executive Ku Swee Yong said that Jurong is "definitely up and coming". "With two new hospitals and hospital-related jobs paying better than average salaries, as well as new office buildings, the level of wealth within Jurong should go up."

He added that having the Canadian International School next door would mean expatriate families could be keen to rent at Lakeville, which should be completed in mid-2017.

Meanwhile, Hong Leong Holdings unveiled Commonwealth Towers, a 99-year leasehold condo in Commonwealth Avenue.

It is undertaking the development, which will be launched in May, with City Developments (CDL) and Hong Realty.

The condominium, comprising two blocks of 43 storeys each, will be linked to Queenstown MRT station by an overhead pedestrian linkway. It will have 845 units, mostly one- and two-bedders, with sizes starting at 441 sq ft. Show suites will be open for public preview from April 13 to 27, with building work expected to be completed in December 2017.

The Commonwealth Avenue area has seen a few launches over the past two years, most recently Alex Residences at Alexandra Road, which sold 150 out of 429 units at an average of $1,650 psf on its first day of sales in November.

Echelon in Alexandra View, also developed by CDL, sold 390 of 508 units at an average of $1,700 psf in its first weekend of sales in January last year. It is now 99 per cent sold, with just three penthouses left.

Mr Edwin Wee, head of sales at SLP International, said Commonwealth Towers should do well given Hong Leong Group bought the land at a low $880 psf.

"When developers buy cheaply, they can sell cheaply. With competitive prices for the area at about $1,500 per sq ft, Hong Leong may price at $1,300 or $1,400 per sq ft and still move units."

wrennie@sph.com.sg

Additional reporting by Ivan Teo

Pasir Panjang set to get boost from Master Plan

Developments likely to make belt of low-rise freehold condos sought after

Published on Apr 05, 2014


Homebuyers can find bargains among the condominiums along Pasir Panjang Road. The area is set to become popular as URA's Draft Master Plan last year will spark further development there, consultants say. -- ST PHOTO: MARK CHEONG

By Melissa Tan

PASIR Panjang has long been associated with container ports and warehouses but that image is changing, consultants say.

Private apartments, mostly low-rise and freehold, now line the western stretch of Pasir Panjang Road close to Clementi Road.

Consultants said that although this area may not be at the top of investors' priority lists now, its star will rise as the Urban Redevelopment Authority's Draft Master Plan last year sparks further development in the area.

The port at Pasir Panjang will be relocated to Tuas after its lease expires in 2027.

That stretch of Pasir Panjang Road is not within walking distance of an MRT station, so investor interest there has lagged behind that in nearby areas such as Buona Vista, said Chesterton Singapore research head Elaine Chow.

However, homebuyers can find bargains there, she said.

The newest condominium along that stretch of road is the freehold Village @ Pasir Panjang, the only project in the vicinity that is still under construction.

On one side of the development are the 72-unit The Spectrum, completed in 2005, and the 40-unit Palm Green, completed in 1999.

On the other side is the 83-unit Villa de West, completed in 1995. All are freehold.

Being the newest, the 148-unit Village @ Pasir Panjang commands the highest prices among all. Its units sold at $1,437 per sq ft (psf) on average over the past six months.

This was above the historical highs recorded for the rest, which were $1,117 psf for The Spectrum in June 2012, $1,091 psf for Palm Green in April last year and $1,103 psf at Villa de West in February last year.

However, Village @ Pasir Panjang's prices may be easing amid a softening market.

Ms Chow noted that the median price at the development was $1,627 psf in the fourth quarter of 2012 but that has dropped to $1,404 psf for the first three months of this year.

Delving into transactions within this development, an 829 sq ft unit on the third floor was sold for $1,616 psf in December 2012 while another 829 sq ft unit on the same floor was sold for $1,536 psf in October last year, she said.

In February this year, another 829 sq ft unit also on the third floor was sold for $1,496 psf.

Agents have recently been advertising discounts at Village @ Pasir Panjang as well.

One claimed to be marketing a three-bedroom penthouse at the project for less than $2 million in total, or over $1,300 psf, but declined to give further details.

Relatively low prices can also be found across the street at the 28-unit freehold Pasir Panjang Court. A 1,335 sq ft unit there was sold in February this year at $928 psf or $1.24 million.

"This is a rarity in today's market where new launches in the suburbs, on 99-year leasehold, are commanding average prices in excess of $1,300 psf," Ms Chow said. Tenants in the district are generally those who work at the nearby science parks or the National University of Singapore.

PropNex chief executive Mohamed Ismail said that the area is likely to be "well sought after" in future as the population grows. "With the Master Plan, the belt will be transformed."

melissat@sph.com.sg

http://www.cnbc.com/id/101562993

Emerging Asia - home to hottest property markets?
Katie Holliday | @hollidaykatie
15 Hours Ago
CNBC.com
COMMENTSStart the Discussion

This Asian region saw biggest rise in property prices
Thursday, 3 Apr 2014 | 8:39 PM ET
Nicholas Holt, Head of Research at Knight Frank Asia Pacific, says Southeast Asia saw the fastest price growth for prime development land over the past two years.
Southeast Asian cities are seeing the fastest increase in prime property prices across all of Asia, according to independent global property consultancy Knight Frank.
"Developing Asia is seeing a much larger magnitude of growth in its indices than developed Asia," said Nicholas Holt, head of research for Asia Pacific.

He highlighted Thailand's Bangkok, Indonesia's Jakarta, Malaysia's Kuala Lumpur and Cambodia's Phnom Penh as four of the top five cities when ranked by growth in land prices.
Read MoreSingaporeans continue their love affair with London property
"This is down to the strong growth in the value of prime residential and commercial property over the last two years and the lower price bases these markets were coming from," he added.

Knight Frank classifies prime property as apartments or condominiums and commercial (office) developments.
Knight Frank singled out Jakarta as the stand out market. Its prime residential index showed that prices spiked 184 percent in Jakarta over the past two years, while its prime office index jumped 192.3 percent.

"Transformed over the last 15 years into a relatively open, stable and democratic country, and fuelled by a growing middle class, demand for both high end condominiums and premium office space in Indonesia's capital has shot up over the last two to three years," said Knight Frank.

Read MoreExpect Hong Kong property discounts to stay: Swire CEO
Another hotspot is Bangkok, the firm said, where the price of residential development land spiked 190.7 percent over the past two years.

Two Indonesian labourers work next to a giant advertisement board of property in Jakarta.
Adek Berry | AFP | Getty Images
Two Indonesian labourers work next to a giant advertisement board of property in Jakarta.
Donald Han, managing director at property consultants Chesterton in Singapore, pointed out that although these developing Asian markets had seen rapid price growth, they were some factors that could inhibit future growth.
"Mature markets are relatively transparent and it's easy for money to come in and out. Then you have your emerging markets - which have some restrictions. In the case of Jakarta you can only buy the right to use and not the right to own if you're foreign," he said.

Read More Why Singapore property sales jump isn't a recovery

"And in the less transparent markets, like Phnom Penh and Yangon, the rules are less clear and in most cases foreigners are not able to buy," he added.

However, domestic demand should help support prices in cities like Bangkok, Jakarta and Kuala Lumpur, he said, where strong local fundamentals like a huge population and a growing middle class, has made them more resilient and less dependent on foreign investors, unlike Singapore and Hong Kong.

"Once foreigners stop buying the music stops and the more mature markets tend to correct, whereas emerging markets tend to be more resilient," he added.

According to Knight Frank, the more mature markets like Hong Kong, Singapore and Tokyo saw the lowest growth, underscoring recent talk of these markets peaking.

"In these mature markets, the lack of prime development land has led to more emphasis on redevelopment opportunities, while given the higher cost of land and in some cases high holding taxes, there is often more pressure to develop quickly," he added.
The firm's recently launched Prime Asia Development Land Index, which analyzes prices across Asia, showed that prime Asia residential and office development prices increased 50.4 percent and 38.3 percent respectively over the past two years.

Read MoreChina mulls relaxing housing curbs: How far will it go?
Chesterton's Han flagged Myanmar's capital city Yangon as the "pearl of South east Asia" in terms of hot property markets to watch, due to its low ownership rate of 50 percent.

According to Dr Chua, head of research for Singapore and Southeast Asia at Jones Lang LaSalle, the Philippines' capital Manila is the market to watch in terms of both office and residential asset prices.

"We have seen some strong gains across South East Asia, where Manila takes the lead in office prices. Outsourcing activities have supported the leasing factitively and investor interest has been lifted as well, driven by cost saving strategies by firms in Asia and Europe," he added.

Katie Holliday
Writer for CNBC.com

PUBLISHED APRIL 11, 2014

Will Sky Habitat price cut nudge others?

CapitaLand will relaunch the Bishan project priced from $1,370 psf
BYLYNETTE KHOO AND CAI HAOXIANG
lynkhoo@sph.com.sg
haoxiang@sph.com.sg
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AMID mounting pressure from upcoming condominium launches, at least one condo project will be re-launched at lower prices. CapitaLand's Bishan project Sky Habitat will start at $1,370 per square foot (psf) on April 19, says a promotional pamphlet from one of its marketing agents, Knight Frank.
This is a drop from two years ago, at the project's first launch, when prices ranged from $1,435 to $1,893 psf. The average selling price then was said to be about $1,650 psf, after taking into account the initial 3 per cent discount given to all buyers. It was what gave this development designed by Moshe Safdie the reputation of being the most expensive suburban condo here.
Only 36 per cent of its 509 units have been sold, as the project nears TOP (temporary occupation permit) next year. With the re-launch, a one-bedroom cum study could start from $1.05 million or $1,485 psf, down from about $1,600 psf previously.
This is not the first time CapitaLand has pared prices for its residential projects; it did so for Interlace in Alexandra and D'Leedon in the former Farrer Court Estate. Its latest move has, however, set observers thinking about whether others will follow suit.
SLP International executive director Nicholas Mak said that the repricing reflects the "new market reality", as developers anticipate new competing launches soon. "If it does not do something to increase sales or the rate of sales, it will end up getting stuck with unsold units as the project nears completion."
But Christine Li, head of research and consultancy at OrangeTee, believes that drastic price cuts are unlikely. "Developers have made enough profits in the last few years and so are in no hurry to do so."
Prices are more likely to be cut for high-end projects because of waning demand, but mass-market projects should hold up well, she added.
Other analysts said that larger developers have more holding power for unsold inventory than smaller developers, so the fact that CapitaLand is among the first to re-launch a project at tamped-down prices comes as a surprise. CapitaLand is developing Sky Habitat with Mitsubishi Estate Asia and Shimizu Investment (Asia).
DBS Group Research analyst Lock Mun Yee said that it was unlikely that CapitaLand would need to do any write-downs on the project, though margins could be affected if the average selling price falls. Her estimated breakeven price for the project was in the "low $1,300s". "They've already locked in a portion at higher prices, so they don't need to take the drastic action of writing it down. Asset turnover is also an important consideration. You don't want to sit on inventory."
Mr Mak said that the repricing is not an issue of holding power, but is in line with the "conveyor belt" strategy to move sales in both good times and bad, which tends to pay off in the long run.
Sky Vue, CapitaLand's adjacent project, has sold close to 70 per cent of its 694 units since its launch last September; its 2013 average price was $1,500 psf and its median price in February was $1,457 psf.

Bleak outlook for private home sales

Estimates see Q1 figures plummeting some 68% from same period in 2013
Published on Apr 12, 2014
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LIKELY BEST-SELLERS: The 281-unit The Hillford (above) sold out on its launch day. Rivertrees Residences and Riverbank @ Fernvale are also likely top first-quarter sellers. -- PHOTOS: DESMOND LIM, FRASERS CENTREPOINT, UOL

LIKELY BEST-SELLERS: The 281-unit The Hillford (above) sold out on its launch day. Rivertrees Residences and Riverbank @ Fernvale are also likely top first-quarter sellers. -- PHOTOS: DESMOND LIM, FRASERS CENTREPOINT, UOL

LIKELY BEST-SELLERS: The 281-unit The Hillford (above) sold out on its launch day. Rivertrees Residences and Riverbank @ Fernvale are also likely top first-quarter sellers. -- PHOTOS: DESMOND LIM, FRASERS CENTREPOINT, UOL
LIKELY BEST-SELLERS: The 281-unit The Hillford sold out on its launch day. Rivertrees Residences (above) and Riverbank @ Fernvale are also likely top first-quarter sellers. -- PHOTOS: DESMOND LIM, FRASERS CENTREPOINT, UOL
LIKELY BEST-SELLERS: The 281-unit The Hillford sold out on its launch day. Rivertrees Residences and Riverbank @ Fernvale (above) are also likely top first-quarter sellers. -- PHOTOS: DESMOND LIM, FRASERS CENTREPOINT, UOL


By Melissa Tan

ANYONE trying to sell a private home in the first quarter would not need reminding that an air of gloom has settled over the market.

The number of new and resale homes changing hands plunged in the first quarter, according to latest estimates.

This is as stark a signal as any that the caution that enveloped the market after the introduction of tough home loan curbs last year has now morphed into pessimism, consultants said.

They added that the outlook for this quarter appears bleak as well.

A lack of major launches last month meant that developer sales for the first quarter could have fallen by nearly a third from the preceding three months, they noted.

CBRE research head Desmond Sim expects new home sales for March to be no more than 500 units due to the dearth of new projects that were rolled out.

"Developers are slowly drip-feeding supply into the market because they're aware the market is softer," he added.

SLP International research head Nicholas Mak said he expects the figures to be even lower, at between 360 and 410 new home sales for the month.

The bestseller in the first quarter was probably the 281-unit The Hillford in Jalan Jurong Kechil, which sold out completely on the day sales began in January.

The runners-up are likely to be the 495-unit Rivertrees Residences and the 555-unit Riverbank @ Fernvale, which are in Sengkang and next to each other.

Rivertrees sold 218 units and Riverbank 211 units in February.

R'ST Research director Ong Kah Seng noted that the top three projects were priced at around $1,000 per sq ft (psf) to $1,100 psf on average, suggesting this could be the ceiling for suburban leasehold condominiums.

If developers did manage to sell 500 units in March, new home sales for the first quarter would have reached 1,789 units - a 32 per cent tumble from October through December.

It would also be a steep 68 per cent plummet from the corresponding period last year when developers moved 5,533 homes.

The year-on-year drop means that low sales in the first quarter this year were not merely due to seasonal fluctuations, Mr Ong said.

He added that sales activity in the first quarter last year was still stronger than this year even though property curbs were introduced in January last year while there were no fresh ones implemented this year.

This indicates that the debt-to-income ratio cap under a total debt servicing ratio (TDSR) framework imposed in late June last year managed to dampen demand far more effectively than the cooling measures, he added.

The TDSR has also put the brakes on the resale market, going by the most recent numbers.

An estimated 991 completed private homes were resold in the first quarter this year, according to the Singapore Real Estate Exchange (SRX).

This was 16 per cent lower than the around 1,180 resales posted in the fourth quarter last year, and a sharp 49 per cent lower than the estimated 1,932 units resold in the corresponding period the preceding year, according to SRX.

Consultants said that while new home sales may pick up this quarter due to more launches, the resale market could stay weak due to keener competition from cheaper new projects.

Knight Frank research head Alice Tan predicts that 700 to 900 new homes could be sold every month in this quarter.

But as developers cut prices to attract buyers, home owners who want to sell may have to lower asking prices, she added.

melissat@sph.com.sg

1 primary residence + 1 inv prop + 1 car + 2 credit cards = maxed out for most people. Where got more firepower?

If Govt did not give TDSR exemption to refinancing, a lot more people will get stuck in with SIBOR turned Board rates loans.

In that case, the better stock to invest is Bank. They will stand to benefit from margin stand point.
Property price in mature area will also be reduced due to some fire sales complementing with price reduction with more supply in newly developing area.

(12-04-2014, 11:29 AM)corydorus Wrote: In that case, the better stock to invest is Bank. They will stand to benefit from margin stand point.
Property price in mature area will also be reduced due to some fire sales complementing with price reduction with more supply in newly developing area.

Yes sir, transfer the risks to institutions better than holding properties with decreasing value...

TDSR will keep them safe and sound...

Tender closing for residential site at Prince Charles Crescent (Parcel B)
http://www.ura.gov.sg/uol/media-room/new...4-24a.ashx


The latest bid is much lower than earlier bid by Wing Tai consortium
http://www.ura.gov.sg/uol/media-room/new...-105a.ashx