RESIDENTIAL MARKET
Private home owners gain from property rebound
THE recovery of Singapore's property market since 2009 has been a welcome fillip for the wallets of private home owners.
Based on caveats lodged, private residential home owners pocketed at least $20.3 billion in gross profit since the sector recovered in late 2009, explaining robust developer sales of around $60.1 billion in the period.
The report also noted that actual profit figures would have been higher as gains from collective sales were not factored into the profit calculations, among various things.
But overall profitability has fallen since the first half of last year - when home owners pocketed more than $4 billion in profit - to $3.2 billion in the second half of 2011 and $2.7 billion in the first half of this year.
Similarly, the percentage of unprofitable transactions in the secondary market has also crept up slightly from one per cent in the latter half of 2011 to 2 per cent during the first half of this year.
For one thing, average profitability per transaction in the secondary market registered a new high of $522,056 in the first half of this year, a near-doubling from the $288,991 recorded in H2 2009.
Notably, the top five most profitable secondary market projects in the first six months of this year comprised the likes of Serangoon Garden Estate (most profitable with $59 million in profit realised), The Quintet, Frankel Estate, Seletar Hills Estate and Trevista, according to data from URA.
On the flip side, the five most unprofitable projects in the same period included developments such as Reflections at Keppel Bay (the most unprofitable project, where a total loss of $7.4 million was realised), St Regis Residences, Latitude, CityVista Residences and Duchess Residences.
Source: Business Times – 4 July 2012
Landmark Tower up for public tender
A PRIME 99-year leasehold residential site was launched for public tender yesterday.
Landmark Tower, located on Chin Swee Road, has a site area of about 60,821 square feet and is zoned "residential" under the 2008 Master Plan. The development, comprising 38 floors and a 360-degree view of the Singapore skyline, also boasts a plot ratio of around 4.014 based on the property's existing gross floor area (GFA).
Consultants say the property is likely to be warmly received at an indicative price range of $280-288 million, though that excludes a $42 million cost to top up the lease to 99 years.
Factoring that in, the indicative prices for the plot would translate to around $1,315-1,355 per sq ft per plot ratio (psf ppr), or $1,252-1,286 psf ppr should a developer choose to tap the 10 per cent bonus GFA for balcony space.
Set on elevated land, the site is conveniently located close to Chinatown and Outram Park MRT Stations as well as F&B and family amenities.
Source: Business Times – 4 July 2012
INDUSTRIAL MARKET
Industrial space prices to rise further
THE trend of capital values of industrial space rising even as rents soften, as seen in Q2, is likely to continue for the rest of the year.
In particular, rents of hi-tech industrial space is expected to fall more than that for conventional industrial space.
Business park and high-tech industrial space saw rents soften in Q2, even as it held firm for conventional industrial space.
Average business park and high-tech rents dipped 0.7 per cent quarter on quarter to $4.35 per square foot (psf) per month and $2.98 psf per month respectively.
Conventional industrial space rents on the upper storeys were unchanged, at $1.75 psf per month.
In contrast, capital values rose, in part driven by cooling measures in the residential property market which drove investors to the industrial sector, and in part due to benchmark prices set in new project launches.
In the secondary market, prices for first-storey industrial space increased 4 per cent quarter on quarter to $577 psf while upper-storey prices rose 4.9 per cent quarter on quarter to $430 psf.
Rental values on the other hand are forecast to fall for the rest of the year, given the slowdown in economic growth, translating to compressed yields.
Source: Business Times – 4 July 2012
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