Orchard retail space oversupply?

Posted on May 30, 2011 by Mindy Yong.
Categories: Property News - Todayonline.

Orchard retail space oversupply?

by Ryan Huang Wenwu 04:47 AM May 28, 2011

SINGAPORE – A number of shopping malls opened in Orchard Road in the last two years, increasing the prime shopping belt’s retail space by about 30 per cent, but not everyone at these new spaces has been doing well.

Only last week, tenants at 313 Somerset reportedly petitioned for lower rentals, complaining of poor business, raising questions over whether there is an oversupply of retail space in the area.

Mr Colin Tan, head of research and consultancy at Suntec Chesterton International, said: “If you go down to Orchard Road and visit some of these places, you’ll see that there is a high turnover of tenants. Tenants, which may have signed three years ago, are now finding it very hard to cope, so you see a lot of empty shops or hoardings or signs.”

There were signs of sluggish demand creeping in during the first quarter this year. Vacancy rates for Orchard Road retail space inched up to 6 per cent from 5 per cent from the fourth quarter last year.

Mr Nicholas Mak, head of research and consultancy at SLP International, said: “In the last two quarters, demand has not been as fast. As a result, some of the malls may have to adjust their rentals to attract new tenants or retain some of the existing ones.”

Others say the situation may not be so straightforward.

Senior manager for research at Cushman & Wakefield Ong Kah Seng said: “There has been a long dearth of major malls in Orchard Road – for more than a decade. The new malls actually refresh the identity of Orchard Road but require some time to be adjusted by market participants as they arrived as a surge after a hiatus.”

Source : TODAYonline – MediaCorp Press Ltd’s copyright

New BTO projects offer variety and affordability

Posted on by Mindy Yong.
Categories: Property News - Todayonline.

New BTO projects offer variety and affordability

May 28, 2011

The six new BTO projects announced yesterday are spread out over four estates, namely Punggol, Pasir Ris, Tampines and Woodlands.

Offering almost 4,000 units in all, these projects – Costa Ris and Golden Lily in Pasir Ris, Punggol Parcvista, Tampines GreenLeaf, Tampines GreenWood and Woodlands Peak – comprise flats in various locations and sizes to meet the different needs of home-seekers.

Two of the projects will be in Pasir Ris: Costa Ris has 1,386 units comprise two-, three-, four- and five-room flats, while Golden Lily is a 12-storey block with 185 studio apartments.

For Costa Ris, prices range from S$120,000 to S$436,000. Prices for Golden Lily will be between S$76,000 and S$102,000.

Similarly, Tampines Greenleaf will have 960 flats comprising units of various specifications, while Tampines GreenWood’s 522 units comprises 144 studio apartments, 158 three-room flats and 220 four-room flats. Prices for both these projects range from S$81,000 to S$444,000.

Punggol Parcvista will have 682 flats, comprising three-, four- and five-room units. The units cost between S$166,000 and S$410,000 each.

Woodlands Peak will be a 33-storey block with 127 studio apartments and 95 three-room flats. Prices range from S$76,000 to S$221,000.

Said PropNex corporate communications manager Adam Tan: “The Government has certainly responded to the public’s demand for affordable housing, especially for first-time buyers.”

He noted that while cash-over-valuation (COV) prices are bottoming out at around S$21,000, “many first-time buyers will still be priced out of the resale market”.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HDB will build flats ‘ahead of demand’: Khaw

Posted on by Mindy Yong.
Categories: Property News - Todayonline.

HDB will build flats ‘ahead of demand’: Khaw

by Esther Ng and Jo-Ann Huang Limin 04:47 AM May 28, 2011

SINGAPORE – Just days into his new job as National Development Minister, Mr Khaw Boon Wan (picture) has instructed the Housing and Development Board (HDB) to build flats “ahead of demand” – a significant change in policy from the “Build To Order” (BTO) approach which has been in place for the past 10 years.

Mr Khaw’s announcement coincided with HDB’s launch of six BTO projects – the largest number launched at once. In addition, he confirmed that the number of BTO units this year would be increased from 22,000 to 25,000 units, by bringing forward projects scheduled for early next year.

Writing on his blog “Housing Matters”, Mr Khaw said: “Given robust demand, I told them proceed to build, knowing that the orders will definitely come.”

While his approach may appear to be one shunned by his predecessor Mah Bow Tan, Mr Khaw made it clear that the directive to “build ahead of demand” would only apply to “this period of demand backlog”.

Under the Registration for Flat System in the ’90s, the Government was building some 30,000 flats annually. But the system had its flaws, with Mr Mah saying on numerous occasions in Parliament that it was difficult to discern how much of the demand was genuine.

At one point, the Government was left with 31,000 unsold flats and it took the HDB five years to clear its stock of unsold flats.

Mr Khaw said the Government could return to the BTO approach “after we have stabilised the situation”.

The six BTOs would bring 4,000 flats into the market, in Tampines, Punggol, Pasir Ris and Woodlands.

Welcoming the news, Mountbatten Member of Parliament Lim Biow Chuan said it “shows that policies must adapt along the way”.

“While a number of MPs had suggested to Mr Mah to build a buffer stock of flats, Mr Mah had been ‘cautious’ as he had been questioned many times in Parliament over the excess supply of unsold flats,” Mr Lim said.

ERA Realty Network’s key executive officer Eugene Lim noted that the move would also allow Singaporeans to take possession of their flats faster.

Property firm Cushman and Wakefield’s vice-chairman Donald Han said HDB prices would be “affected if there is an oversupply” but demand would still remain in mature estates. “Market demand is very picky, people want good locations and good choices,” he said.

With the HDB planning to ease the S$8,000 income ceiling on flats -something hinted by Mr Mah during the General Election – Mr Khaw also pledged to “sustain the new pace of building” into next year in anticipation of strong demand.

He said: “One priority is to help young couples own their own homes as soon as possible, so that they can start their family and have babies. This is a national priority – promoting marriages and births – and MND must facilitate it to its best ability.”

There are some 15,000 first marriages among Singaporeans annually and 70 per cent of new couples get their first homes through the BTO system.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HDB launches sale of Punggol EC site

Posted on by Mindy Yong.
Categories: Property News - Todayonline.

HDB launches sale of Punggol EC site

by Travis Teo 04:47 AM May 26, 2011

The Housing & Development Board (HDB) has put up an Executive Condominium (EC) housing site at Punggol Way for sale.

The land parcel was released for sale under the Confirmed List of the first half of the Government Land Sales programme.

The 99-year lease site can yield up to an estimated 720 housing units.

The HDB says the land parcel has a site area of about 25,000 sq m, with a maximum gross floor area of around 75,500 sq m.

It added that the site is located in Punggol Town, and is near the Punggol transport hub comprising the LRT, MRT and a bus interchange. Analysts agree that the site is well located.

Mr Nicholas Mak, executive director of SLP International Property Consultants, said: “This land parcel is located only about 700m from the Punggol MRT Station and the future EC development is likely to be popular with home buyers. Although there is another EC project in Punggol that could be launched in the next two months, this tender could still attract four to seven bidders due to its location and proximity to the future Punggol town centre.”

The HDB says the new development is expected to be completed in 48 months from the date when the tender is accepted.

Mr Li Hiaw Ho, executive director, CBRE Research, said: “Units in Prive EC, which is further down Punggol Field, were transacted at $660 psf – $715 psf in January-April 2011 period. Units in Austville Residences EC, in Sengkang, were sold at $620 psf – $740 psf over the same period. “We expect the subject site to fetch bids of between $227 million and $244 million with a view to sell the new units at around $700 psf.”

The tender will close at 12 noon on July 7.

Overall, the Government has placed 30 sites in this year’s first half land sales programme, which can potentially yield more than 14,300 private residential units.

These 30 sites include four Executive Condominium sites and two commercial and residential sites. Travis Teo

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Foreign buyers set new record

Posted on May 25, 2011 by Mindy Yong.
Categories: Property News - Todayonline.

Foreign buyers set new record
by Linette Lim 08:12 AM May 25, 2011SINGAPORE – Foreign buyers accounted for 16 per cent of private home purchases in Singapore in the first quarter of this year, setting a new record high, according to real estate consultant DTZ Research.

The previous high of 15 per cent was recorded in the fourth quarter of 2007. DTZ defines foreign buyers as non-Singaporeans and non-Permanent Residents.

Singaporeans’ share of private property purchases fell to 67 per cent in the first quarter from 70 per cent in the previous three months. PRs accounted for the balance.

The proportion of mainland Chinese among non-Singaporean buyers – comprising foreigners and PRs – hit a new record high of 24 per cent in Q1 2011. It is the first quarter that Chinese nationals are the top foreign purchasers of residential properties in Singapore.

“The residential market appears to have taken the January 2011 cooling measures in its stride,” said Ms Chua Chor Hoon, head of DTZ South East Asia Research.

“However, local concerns about high housing prices and the influx of foreigners that were magnified during the recent General Election will be a catalyst for the review of immigration and housing policies, which could dampen demand in the residential market in the coming months.”

According to DTZ, small units continue to be popular among home buyers, especially the HDB upgraders. The proportion of buyers with HDB addresses who bought units below 1,000 sq ft increased 5 per cent in Q1 2011, compared with a 2 per cent increase among buyers with private addresses.

DTZ’s analysis also revealed that a higher proportion of foreigners bought into the high-end market during the quarter. For transactions costing S$1.5 million and above, the proportion of purchases made by foreigners increased the most – from 17 per cent to 21 per cent.

For purchases below S$500,000, the proportion of transactions made by Singaporeans was 80 per cent, up from 72 per cent a quarter earlier. This reflected the smaller budget among Singaporean buyers.

“At the lower end of the price scale, locals are the main drivers of demand,” said DTZ.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

16% of private home buyers in S’pore in Q1 are foreigners: DTZ

Posted on by Mindy Yong.
Categories: Property News -Channel Newsasia.

16% of private home buyers in S’pore in Q1 are foreigners: DTZ

By Linette Lim

SINGAPORE : Foreign buyers accounted for 16 per cent of private home purchases in Singapore in the first quarter of this year, setting a new record high, according to real estate consultant DTZ Research.

The previous high of 15 per cent was recorded in the fourth quarter of 2007.

DTZ defines foreign buyers as non-Singaporeans and non-permanent residents.

Singaporeans’ share of private property purchases fell to 67 per cent in the first quarter, from 70 per cent in the previous three months.

The proportion of mainland Chinese among non-Singaporean buyers – comprising foreigners and PRs – hit a new record high of 24 per cent in the first quarter of 2011.

It is the first quarter that Chinese nationals are the top foreign purchasers of residential properties in Singapore.

“The residential market appears to have taken the January 2011 cooling measures in its stride,” said Ms Chua Chor Hoon, head of DTZ South East Asia Research.

“However, local concerns about high housing prices and the influx of foreigners that were magnified during the recent General Election will be a catalyst for the review of immigration and housing policies, which could dampen demand in the residential market in the coming months,” she added.

According to DTZ, small units continue to be popular among home buyers, especially the HDB upgraders.

The proportion of buyers with HDB addresses who bought units below 1,000 square feet increased 5 per cent in Q1 2011, compared with a 2 per cent increase among buyers with private addresses.

DTZ’s analysis also revealed that a higher proportion of foreigners bought into the high-end market during the quarter.

For transactions costing S$1.5 million and above, the proportion of purchases made by foreigners increased the most – from 17 per cent to 21 per cent.

For purchases below S$500,000, the proportion of transactions made by Singaporeans was 80 per cent, up from 72 per cent a quarter earlier.

This reflected the smaller budget among Singaporean buyers. “At the lower end of the price scale, locals are the main drivers of demand,” said DTZ.

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Elizabeth Tower up for en bloc sale

Posted on May 18, 2011 by Mindy Yong.
Categories: Property News -Channel Newsasia.

Elizabeth Tower up for en bloc sale

By Travis Teo | Posted: 18 May 2011 1600 hrs

SINGAPORE : Elizabeth Tower, located in the heart of Orchard Road’s shopping belt, is up for en bloc sale at an asking price of S$630 million.

Marketing agent Credo Real Estate said the freehold development would be a perfect fit for a luxury homes branded developer.

The development has a land area of above 54,000 square feet, with 80 units ranging from just under 2,000 square feet to above 3,100 square feet.

As such, Credo said unit owners stand to receive minimum gross prices of between S$6.3 million and S$9.7 million, while the penthouse owners could walk away with at least $14.2 million.

Elizabeth Tower has been designated with a gross plot ratio of 2.8 under the Master Plan, but Credo said the Urban Redevelopment Authority (URA) has confirmed that the development baseline plot ratio is actually 4.84.

Gross floor area is around 278,000 square feet, including the additional 10 per cent gross floor area of balcony.

As such, Credo said the new development may be configured into 132 apartments with an average size of 2,000 square feet.

It added that Elizabeth Tower is part of the ultra-prime residential sites off Orchard Road where there are only two dozen sites.

In 2006 and 2007, there were 14 of such sites that were sold to developers, but since then, no sites had been put up for sale.

Observers said Singapore, with its booming economy and as the financial capital of the region, should see growth in luxury home prices.

Credo expects the break-even price to be at about S$3,000 to S$3,100 per square foot based on the asking price of S$630 million.

Some units at the nearby freehold The Ritz-Carlton Residences had fetched $3,762 per square foot, and $4,307 per square foot, in February.

The tender will close in the afternoon on June 22.

- CNA /ls

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Stronger interest in futures market from retail investors

Posted on by Mindy Yong.
Categories: Property News -Channel Newsasia.

Stronger interest in futures market from retail investors

By Ryan Huang | Posted: 17 May 2011 2133 hrs

SINGAPORE : The trading in derivatives such as futures contracts is expected to pick up among regional investors as they become more savvy.

The Singapore Exchange (SGX) and various brokerage houses said they are already seeing a stronger interest in these products.

This has also led to more related product offerings and education seminars.

If the stock market takes a dip and you expect the trend to continue, one way to hedge your portfolio is through the futures market.

Futures are typically contracts for the delivery of a product at a later date, but at a price agreed today.

Sim Han Qiang, an investment analyst with Phillip Futures said: “One advantage of futures trading is that futures contract is a leveraged financial instrument. This would mean that you could actually make decent gains using limited amount of investor funds.

“The second advantage is that you can go short on the market just as easy as you go long the market. This implies that futures trader can benefit from rising markets as well as falling markets.”

And there are also futures that allow investors to take a position on the wider economy such as futures based on the MSCI Singapore, the Nikkei or the Hang Seng indices.

“For example, if the investor has a large portfolio of Singapore blue chips and he has a short term bearish view on the market, he or she may consider shorting the MSCI Singapore futures index to protect his portfolio,” said Sim.

The futures market offers investors the opportunity to tap on the commodities arena. And many of the commodities involved in futures trading include agricultural products such as wheat, oil, precious metals and currencies.

Geoff Howie, director of Product Sales at the Singapore Exchange said: “Hedging is something for the retail investor, I probably wouldn’t say it’s too sophisticated for the investor. The investor has to measure the amount of futures contract that we use to hedge against the value of the underlying shares that they are holding at present.

“There are plenty of educational courses that are available to instruct traders how to construct a simple to a more complex hedge using options in conjunction with the futures.

“With the macro economic overlay of this region in particular, we’re seeing a lot more individual interest into trading derivatives, looking at derivatives as an alternative investment to standard equities, or even the housing market as an underlying asset.

“You can see this is demonstrated through a multitude of products that we are offering. Let’s face it, we are a demand-driven exchange, and we’re seeing a multitude of products that basically cater to individual investors needs.”

And because such products allow investors a high level of leverage, experts said it’s important to have financial discipline and a money management plan. This includes having a good entry level, a cut-loss point and having a target level to sell at.

- CNA /ls

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Against expectations, new private home sales soar

Posted on by Mindy Yong.
Categories: Property News - Todayonline.

Against expectations, new private home sales soar

by Jo-Ann Huang Limin 04:47 AM May 17, 2011

SINGAPORE – Defying market expectations, sales of new private homes surged 29 per cent last month from March to 1,788 units, driven by robust demand in the mass market sector from HDB upgraders, data released yesterday by the Urban Redevelopment Authority showed

That’s the highest number of transactions since last November, as buyers returned in force after a temporary lull in February following the introduction of the fourth round of property market cooling measures in January that included stamp duties as high as 16 per cent.

PropNex’s communications head Adam Tan said: “It is clear that homeowners and investors alike have assimilated the last cooling measures announced on Jan 13. This has resulted in continuing buyer confidence that has seen steadily increasing sales since February.”

Analysts say the fear of runaway home prices may have further fuelled sentiment last month, adding to the snowballing effect as buyers bought their way through more property launches.

Ms Chia Siew Chuin, director of research and advisory at property consultancy Colliers International, said, “There are also buyers who probably entered the market because they could be fearing that they may miss the boat and therefore would commit to the market before prices run away again.”

For April, suburban areas led private home sales again, with 1,010 units sold last month, while city fringe areas achieved sales of 477 units, and central region homes saw the least sales with 301 units.

And amid the persistently high liquidity environment, analysts remain upbeat, noting that most buyers are choosing smaller and cheaper units in suburban areas.

PropNex’s Mr Tan noted that “56.2 per cent of all the units sold were in the mass market, or under S$1,200 per square foot. The strong showing in the mass market indicates the sustained interest in private property by HDB upgraders.”

Two mass market projects accounted for 564 units or roughly one-third of April’s transactions, PropNex noted, with 340 units in Eight Courtyards in Yishun (picture) sold at a median price of $789psf, while 224 units Hedges Park in Upper Changi were sold at a median price of $889psf.

Mr Ku Swee Yong, chief executive officer at International Property Advisor, said: “Next two months, depending on how many new projects are in the pipeline, if there are 1,500 units launched, we could see a take up of maybe about 1,300 to 1,500 units again.”

Including Executive Condominiums, new home sales totalled 1,901 last month, up from 1,543 units in March.

Developers also rolled out more properties last month, after fears of a nuclear crisis caused by the March 11 earthquake in Japan eased. A total of 2,046 units were launched, a 64 per cent rise from March.

With the property market remaining hot, some analysts expect it won’t be long before the Government takes action again.

Colliers’ Ms Chia said: “Further measures are likely to be imposed going forward should the numbers continue to show that it is going to be so robust.”

Other analysts say the Government will more likely introduce further measures to help first-time HDB flat buyers instead of targeting speculation in the private property market.

 

Source : TODAYonline – MediaCorp Press Ltd’s copyright

MM, SM may still be approached for advice: MPs

Posted on May 16, 2011 by Mindy Yong.
Categories: Property News - Todayonline.

MM, SM may still be approached for advice: MPs

by Neo Chai Chin and Esther Ng 04:47 AM May 16, 2011

SINGAPORE – Even if Minister Mentor Lee Kuan Yew and Senior Minister Goh Chok Tong leave Cabinet, there is nothing to stop the younger generation of leaders from approaching them for advice, political watchers and two potential fourth-generation leaders said yesterday.

And it seems the sentiment is that any loss of MM Lee’s and Mr Goh’s institutional knowledge, should Prime Minister Lee Hsien Loong accept their decision, will be limited by the continued presence of multi-term ministers and PM Lee himself.

Brigadier-General (NS) Tan Chuan-Jin, newly elected in Marine Parade, envisages both MM Lee and Mr Goh – who have nearly 90 years of political experience between them – also contacting Members of Parliament to consult on an informal basis.

While the departure of the two elder statesmen would give PM Lee and his younger team “room to break from the past”, in MM Lee’s own words, this situation “doesn’t mean that SM and MM will cease to be valuable”, said BG (NS) Tan, who has emerged as a voice for change within the People’s Action Party.

Fellow MP Heng Swee Keat (Tampines GRC) felt it would have been ideal for there to have been a period of overlap with the new Cabinet. “Nevertheless, PM and many of his Cabinet colleagues have been in the Cabinet for several terms. They’ve benefited from the institutional memory and wisdom of SM and MM,” he said in an email reply to MediaCorp.

The point was echoed by political risk consultant Azhar Ghani, who noted that PM Lee also possessed institutional knowledge, having served as long-time deputy to Mr Goh when the latter was Prime Minister. “And because of his proximity to MM, he would have discussed politics with him,” said Mr Azhar. MM Lee and Mr Goh were also elected in December to the PAP’s Central Executive Committee, the party’s highest decision making body.

Still, in their joint statement announcing their retirement from Cabinet on Saturday, both leaders were clear on the point that they felt the PM and his completely younger team of ministers “should have a fresh clean slate” in order to “connect to and engage” with the young generation. “It cannot be government as usual,” MM Lee had also said.

PM Lee also said on Saturday that the decision by the elder statesmen was a “major event” for Singapore.

He outlined that his “basic consideration” on his Cabinet line-up is to form a team “which would be most effective in solving problems and establishing rapport and trust with the people going forward for the next five years”.

BG (NS) Tan expects a “leaner Cabinet”, as do some political watchers – it currently comprises 21 members

Mr PN Balji, director of the Asia Journalism Fellowship at Nanyang Technological University, believes that some of the older current ministers will not feature when PM Lee announces the new Cabinet. He also expects the disappearance of ministers without portfolios, if a trimmer team is in place.

Several MPs were in a pensive mood yesterday, as they expressed sadness at Mr Lee’s and Mr Goh’s decision. Outgoing Foreign Affairs Minister George Yeo, for instance, posted on his Facebook page: “Received news of SM Goh and MM Lee stepping down with a heavy heart and a sense of passage to a new era.”

Even as this development gives PM Lee the opportunity to put his mark on Singapore’s political scene in the next five years – in Mr Balji’s words – Mr Azhar noted that the concept of generational leadership seemed unique to Singapore.

“Elsewhere in the world, you can be 50, 60 years old, and no one would say you’re over the hill. But you have George Yeo saying he would be too old to contest in the next General Election. We could see more Ministers stepping down before the next elections, just like how Yeo Cheow Tong and Lee Boon Yang have done,” he said.

But “given the current political landscape”, Mr Heng, 49, said he understood Mr Lee’s and Mr Goh’s desire to provide “a clear signal that PM and his team will be fully in charge and will have to work hard to forge a deeper bond with fellow Singaporeans”.
Source : TODAYonline – MediaCorp Press Ltd’s copyright