Thursday, 17 May 2012

News Update - 17 May 2012


RESIDENTIAL MARKET
New norm brewing in private home sales
Elevated sales figures for private homes may become the new norm given the sector's sustained record performance over the past few months, say industry watchers.
It was already no surprise when the Urban Redevelopment Authority (URA) announced a pick-up in April's private home sales volume following a temporary respite in March.
URA reported a total of 2,487 private homes - excluding executive condominiums (ECs) - being sold in the month of April, a 4 per cent jump from March, and slightly higher than the 2,417 units achieved back in record-making February. Sales volume for the month was also a generous 38 per cent higher than the same period a year ago.
Things continued to be quiet in the EC launch scene with no new projects released for two consecutive months. In the absence of fresh stock, the segment's sales suffered, falling to 173 units, as compared to 639 units in March, bringing the total tally of new private homes (including ECs) to 2,660 for the month, 12 per cent lower month-on-month.
April also seemed to be a popular month among developers to launch their new projects, with names such as Barker 9, Eon Shenton, Hillsta, Katong Regency, Seahill, Sky Habitat, The Promenade @ Pelikat and Twentyone Angullia Park hitting the market.
Uptake for many of these new developments was also healthy with Katong Regency (244 units sold at a median price of $1,709 psf) topping the table for the most number of units sold in the month, among both new and older launches.
Notably, the UOL development which was sold out within a week was said to have been popular with buyers due to rising popularity of homes with a commercial component due to the added convenience it brings.
On the EC front, developments such as Twin Waterfalls and The Tampines Trilliant continued to sell well with both projects transacting 60 and 39 units respectively in April. For those with much deeper pockets, the most exorbitant unit sold for the month was an apartment at Hilltops (located at Cairnhill Circle) which transacted at $4,398 psf. However, the bulk of properties sold in April continued to hover in the $1,000 to $1,500 psf range.
Regionally, the core central region (CCR) reflected the sharpest pick-up in demand, with 106 units being sold in the area, up almost two-fold from March.
Based on caveats lodged, the median prices of new sales in the OCR have been rising more than in the CCR resulting in the gap between OCR and CCR closing from 2.5 in June 2007 to 1.8 times in April 2012. This has motivated more Singaporean buyers to enter the CCR market as evidenced by the recent developer sales result and this trend of a bottom-up support of the high end segment can be expected to continue.
Homes in the rest of central region (RCR) also seemed to have gained favour with buyers, with the number of units sold rising 70 per cent month-on- month to 867 units. But mass market homes in the outside central region (OCR) bucked the positive trend, with sales declining 17 per cent to 1,514 after reaching 1,825 in March - though demand was still deemed to be healthy.
Source: Business Times – 16 May 2012
Govt rolls out 5 private housing sites
For the fourth consecutive month, the government has announced the launch of 99-year leasehold private housing sites under its land sales programme.
In the latest instalment yesterday, the government rolled out five sites - one on the confirmed list and the other four on the reserve list - that can potentially generate about 2,100 homes.
The confirmed list plot is at Pheng Geck Avenue near Potong Pasir MRT Station. A land parcel next door (at Tai Thong Crescent) is one of the four made available for application on the reserve list yesterday. It is zoned for residential use with commercial use at the first storey.
Two other reserve-list plots are at Kim Tian Road (a stone's throw away from Tiong Bahru MRT Station and Tiong Bahru Plaza) and Prince Charles Crescent (about 400-500 metres from Redhill MRT Station). The fourth reserve list site is at Sengkang West Way, near the H2O Residences condo project.
The confirmed list site at Pheng Geck Avenue is next to the condo plot sold at a state tender in August last year to Tuan Sing for about $567 per square foot per plot ratio (psf ppr), which in turn is close to an earlier plot sold for $607 psf ppr to Qingdao Construction at a June 2010 tender (now being developed into Nin Residence).
Six property consultants polled by BT yesterday expect top bids for the Pheng Geck Avenue plot of $550-810 psf ppr. Based on the top end of that range, the average selling price for a new project on the site could be close to $1,450 psf. Some analysts predict 10-15 bids.
Forecasts of top bids for the Tai Thong Crescent plot range from about $550 psf ppr to $800 psf ppr, with some consultants predicting 10-15 bids, if the site were to be launched in the current market.
Analysts gave rave reviews on the Kim Tian plot, a short walk from Tiong Bahru MRT Station. The site is centrally located, and the Tiong Bahru/Kim Tian area is fairly niche and self-contained with eateries, shops and conservation apartments.
However, analysts differed widely in their expectations of how much the plot could sell for if it were to be tendered out today - from $580 psf ppr to $870 psf ppr.
For the site at Prince Charles Crescent, expectations of the winning bid are in the $650-900 psf ppr range. The site is near a plot at Jervois Road picked up by Singapore Land for $881 psf ppr at a state tender in February. Closer to Redhill MRT Station, City Developments bought a plot (next to Ascentia Sky condo) for $754 psf ppr in December.
Analysts priced the Sengkang West Way plot at $336-440 psf ppr. While the site is not near an MRT or LRT station, it is located in a growth area and a new condo on the site would find demand from upgraders.
Source: Business Times – 16 May 2012

Property agent jailed for stamp duty fraud

A 24-YEAR-OLD property agent was yesterday jailed for 12 weeks for using fake stamp certificates, in the first case of its kind.
Desmond Tan Hock Heng, who was with Dennis Wee Group, admitted cheating the Commissioner of Stamp Duties of $3,694 by using eight bogus stamp certificates in seven property rental deals.
Separately, he was jailed for another two weeks for pocketing rent payments that two clients had entrusted to him, amounting to $4,600 in one case and $3,600 in the other.
Tan is the first property agent to be charged under the Stamp Duties Act for passing off counterfeit stamp certificates as genuine.
Stamp duty is a tax on documents or agreements relating to properties, such as lease agreements, options to purchase, and sale and purchase agreements.
After stamp duty has been paid, a stamp certificate will be issued.
Stamping and payment of stamp duty for leases and tenancy agreements are made online via the Inland Revenue Authority of Singapore's (Iras) e-Stamping system.
When a document needs to be stamped, the user would log on to the system to fill in an electronic form, after which the system would generate a unique document reference number.
After payment is made, the system would generate the certificate bearing the unique number. The user can then print the certificate from his computer.
Acting on a tip-off, Iras started looking into various rental transactions handled by Tan.
Investigations show that Tan, using a genuine certificate from a previous deal he had handled, forged eight stamp certificates by altering details such as the addresses, names of the landlords and tenants, stamp duty amounts and dates of documents.
He then presented these bogus certificates to unsuspecting landlords, agents of the landlords and tenants.
He later deleted the original and fake certificates, but Iras' forensic teams recovered them from his desktop computer and laptop.
Yesterday, he pleaded guilty to five counts of using counterfeit stamp certificates between January and April last year.
Another three counts were taken into consideration.
Iras said it takes a very serious view of non-stamping and stamp duty fraud.
Any person or business that deliberately counterfeits stamp certificates and knowingly misrepresents them as genuine faces a fine of up to $10,000 and up to three years' jail.
Members of the public can check the authenticity of stamp certificates on the e-Stamping website athttps://estamping.iras.gov.sg
Cases of stamp certificate fraud can be reported to Iras at estamp@iras.gov.sg or on 6351-3697/3698.
Source: The Straits Times – 16 May 2012

Residential project in Sydney launching here

PROPERTY buyers here can add one more option to their list: residential units in the heart of Sydney offered by a local developer.
The Mark, a 412-unit project in Chippendale, on the southern edge of the city's central business district, will be launched here this weekend. It will also be launched at the same time in Sydney.
The Mark is among several residential projects at Central Park, said to be the single-largest mixed-use development in downtown Sydney.
It is being jointly developed by Frasers Property Australia, the Australian arm of local developer Frasers Centrepoint, and Sekisui House Australia, a Japanese firm.
Interest from buyers here has prompted the developers to launch the project in Singapore. Interested buyers have inquired about The Mark at launches of local properties here.
The Australian property market never really collapsed; for all the while it has been pretty steady. Although demand is not as strong as in Singapore, it's quite stable.
Frasers Property Australia chief executive Guy Pahor said there was a shortage of student housing in the area, which hosts three major universities. That could make The Mark a sound investment.
Mixed-use developments in the city are also becoming more popular, he said.
The Mark, which will have access to facilities such as a swimming pool, is set to be completed in early 2014. Homes for sale range from one-bedroom to three-bedroom apartments. Dual-key units are also available.
The Mark is priced from A$480,000 (S$625,000) upwards, or an average price of about A$1,005 per sq ft.
Source: The Straits Times – 16 May 2012
COMMERCIAL MARKET
Robinsons to open flagship store at Heeren next year
RETAIL group Robinsons is investing $40 million towards a new flagship store at The Heeren, which is likely to open mid-next year.
Robinsons is part of the Dubai-based Al-Futtaim Group, which bought Robinsons in 2008 and took it private.
The 150,000 square foot flagship, which will be dubbed Robinsons Orchard @ The Heeren, will also introduce food & beverage offerings.
Robinsons Orchard @ The Heeren will be operated under a long-term lease agreement with Swee Cheng Holdings, which is also making a "significant investment" in the project. The building will undergo a major overhaul from the third quarter of this year.
Also in the works is an 80,000 sq ft store at Jem shopping mall at Jurong Gateway next year.
Other Robinsons store locations include Raffles City, The Shoppes at Marina Bay Sands as well as Centrepoint, for which the lease for its 130,000 sq ft store at the shopping mall runs out in 2014.
"We do believe there's a business to be done in the suburbs if you get the right development, tenant mix and right ... developer," he said, adding that eastern Singapore could also potentially represent an opportunity for a store location.
While the Robinsons store at MBS is "not (doing) as well as hoped", "MBS retail is an example of a business that people will have to be patient about", Mr McCallum said. "The link between say, gambling and retail is not immediate."
Beyond Singapore, the group is looking into a second Robinsons store in Kuala Lumpur.
Robinsons also operates brands such as Marks & Spencer (M&S) and River Island, though it is planning to discontinue its River Island operations, which is a franchise.
Still, one of the challenges facing the retail industry this year is flagging consumer confidence as the global economy continues to battle headwinds.
Source: Business Times – 16 May 2012

No comments:

Post a Comment