RESIDENTIAL MARKET
Non-landed homes changing hands at record average price
Prices of resale non-landed private homes continued to climb, hitting a record $1,222 per square foot (psf) on average in the first two months of the fourth quarter.
This was on the back of an improved performance from all regions here, latest data from the Singapore Real Estate Exchange showed.
Private home prices in the outside central region (OCR) rose 4.5 per cent over Q3 to $959 psf, followed by the rest of central region (RCR), which recorded a 3.3 per cent increase to $1,224 psf.
Resale prices in the core central region (CCR) were up 2.8 per cent at $1,778 psf.
Transaction volumes, too, continued to climb, rising 6 per cent to 2,483 resale transactions in the October-November period versus the first two months of the previous quarter.
However, weak rental rates caused overall gross rental yields to drop to a six-year low of 3.77 per cent in the period. Average unit monthly rents fell one per cent to $3.84 psf in the first two months of Q4, from $3.88 psf in Q3.
This was led by a 2.5 per cent drop in the RCR to $3.91 psf, where prices moderated after rising in the first three quarters in the year.
Rents in the other regions remained relatively stable compared to the previous quarter.
Meanwhile, demand for rental shoebox units was high, with 1,328 contracts signed this year. Year-to-date transaction volume for resale shoebox units came to 198.
Shoebox units continued to draw higher rental offers in the fourth quarter to achieve average unit monthly rental of $6.65 psf, up 0.6 per cent from $6.61 psf in the third quarter.
In the HDB resale market, overall cash-over-valuation (COV) hit $34,000 in the first two months of Q4. Overall COV increased to $35,000 in November from $33,000 in October.
The higher COV pushed the overall HDB median resale price to a record $455,000, up 1.1 per cent over Q3 prices.
Overall HDB median monthly rents were unchanged at $2,400.
Source: Business Times –8 December 2012
Cash premiums for resale flats near record high
Cash premiums for HDB resale flats have climbed to a median of $34,000 over the last two months, just $2,000 short of the record reached last year.
This has pushed the median resale flat price to $455,000 in the fourth quarter thus far, a 1.1 per cent rise from the quarter before, said the Singapore Real Estate Exchange (SRX) in its latest report.
Cash-over-valuation (COV) premiums are what buyers pay over and above the valuation of a flat. As they have to be paid in cash, COVs have an impact on the affordability of resale flats.
Since tracking began in 2007, the highest median that COVs have reached is $36,000, in the third quarter of last year.
Property agency bosses say they expect COVs to continue to rise as long as the supply of resale flats remains tight.
With prices of private property still rising, more potential buyers will also find themselves priced out and turn to the Housing Board resale market.
According to SRX, which captures transactions from the HDB and major property agencies, the prices of private non-landed property grew 5.4 per cent in the last two months.
Property experts said policy measures to curb speculation have had the effect of diminishing the number of resale units put up for sale.
In 2010, for example, the minimum occupation period before a buyer could put his flat up for sale again was raised from three years to five.
This effectively shrank the resale market, and transaction volumes have dropped by about a quarter since.
In 2010, 32,000 resale flats changed hands. Last year, the figure fell to 25,000. The num-ber for this year is expected to come in about the same or lower.
What also fanned the COV flames, said observers, were recent headline-making transactions where sellers pocketed cash premiums of about $200,000.
In September, a Queenstown flat went for the price of $1 million, which included $195,000 in COV. Around the same time, an executive flat in Bishan that went for $970,000 set a new COV record of $250,000.
Flat buyers expressed resignation at the fact that high COVs are here to stay.
Source: The Straits Times –8 December 2012
Buying a Queenstown flat? Prepare to fork out more
From his 40th-floor flat in Tanglin Halt, retiree Fong Weng Jui can see Marina Bay Sands, Gardens by the Bay and Orchard Road.
On several occasions, small groups of "aunties" have knocked on his door and asked to look at the view, he says. Their next question, playfully posed: Would he like to sell?
Agents have called him with the same query, adds the 68-year-old.
He does not want to sell, but if he did, he could have cash in hand of more than $76,250 - the me-dian cash over valuation (COV) that four-room flats in Queenstown currently command.
A five-room flat is now going for a median COV of $118,000, said the Singapore Real Estate Exchange in its latest report yesterday.
HDB flats in the historic neighbourhood consistently break price records: In September, a flat in Mei Ling Street went for $1 million, with a COV of $195,000.
Queenstown's proximity to town plays a key role, say agents, as do its amenities such as markets, hawker centres and the nearby Ikea store.
Source: The Straits Times –8 December 2012
Sengkang EC's penthouse units snapped up in 90 minutes
All the penthouse units at an executive condominium (EC) in Sengkang were snapped up on its first morning of bookings yesterday, in another sign of strong demand for EC projects.
The 16 penthouse units at The Topiary were sold within the first 90 minutes, said Kheng Leong, which is developing the project in a joint venture with Qingjian.
The single-storey units went for prices of between $1.3 million and $1.5 million, and are between 1,970 sq ft and 2,476 sq ft.
When The Straits Times visited the showflat at Fernvale Lane yesterday, the room was packed and the snaking queue for bookings reached outside the building.
Ms Jaime Chong, who bought a penthouse yesterday, said she reached the showflat at 9.30am, more than half an hour before balloting began shortly after 10am.
The 33-year-old account manager told The Straits Times that she had shortlisted six penthouse units at The Topiary and managed to secure the last one on her list that was available - a 2,013 sq ft unit that cost nearly $1.36 million.
"We have three kids, so we need to upgrade," said Ms Chong, whose children are aged between one and five.
She lives with her 33-year-old project manager husband and their children in a four-room HDB flat near Buangkok MRT station. The extra space in the penthouse would make it easier for relatives to visit, Ms Chong said.
She added that she was drawn to the EC's amenities such as a swimming pool, as well as its proximity to Greenwich V shopping mall and the upcoming The Seletar Mall, slated for completion in 2014.
The Topiary has 700 units with a mix of two-, three- and four-bedders, as well as dual-key apartments. The smallest unit is 753 sq ft and the cheapest is a $580,000 two-bedder.
Kheng Leong said in a statement yesterday that 225 units were sold in four hours.
It told The Straits Times earlier this week that just over 600 applications had been received during the five-day application period, which closed on Tuesday.
Penthouses, skysuites and other luxe features have become increasingly common at EC projects, as developers pull out all the stops to attract buyers.
For instance, the 514-unit CityLife @ Tampines, which boasts a controversial 4,349 sq ft "presidential penthouse", was more than three times subscribed with over 1,700 applications received by the deadline on Wednesday.
The next EC project expected to be pushed out before the end of the year is Forestville in Woodlands.
Source: The Straits Times –8 December 2012
Bright end to the year for property market
The year looks like it is ending with a flourish for the property market, with turnover up and condominium resale prices already at a historic high.
The only weak spot is rentals, which have weakened in the wake of increased supply and job cuts among global firms.
Condo resale prices rose overall to $1,222 per square foot (psf) on average for October and November, according to the Singapore Real Estate Exchange (SRX) yesterday.
This is 5.4 per cent up on the $1,159 psf average recorded during the third quarter this year.
Gains were seen across the island during October and November.
City centre resale prices were 2.8 per cent higher than the average in the third quarter, city fringe condos were up 3.3 per cent and suburban condo values shot up 4.5 per cent.
The overall islandwide price growth of 5.4 per cent was higher than the individual increase in each region because condos in the city centre, which are more expensive per square foot than the rest, made up a bigger percentage of transactions in October and November than in the third quarter, the SRX said.
Resale transaction volumes climbed 6 per cent to 2,483 in October and November, from July and August. However, analysts noted that December is typically a quieter month, given the festive break, so overall fourth-quarter transaction volumes may not show a significant increase.
The rental market appears to be heading in the opposite direction to the resale market.
Overall gross rental yield dropped to a six-year low of 3.77 per cent in the first two months of the fourth quarter, the SRX said, citing a double whammy of strong price gains and weaker rents.
Analysts said the rental outlook is likely to be dim.
Average unit monthly rents dipped from $3.88 psf in the third quarter to $3.84 psf in October and November.
The sharpest drop was in the city fringe, where rents moderated after three straight quarters of growth this year, falling 2.5 per cent to an average of $3.91 psf.
Rents for condos in the rest of the island remained relatively stable relative to the third quarter.
City centre rents averaged $4.67 psf in October and November, little changed from the thirdquarter, while suburban rents were virtually flat at $3.06 psf.
The SRX's report also included, for the first time, data for shoebox units, which are apartments smaller than 50 sq m.
Demand was high for rents, with 1,328 contracts having been signed so far this year, but the number of resale transactions was relatively small at 198 units as of Dec 6.
Average unit monthly rentals for shoebox apartments were $6.65 psf in October and November, slightly higher than $6.61 psf in the third quarter.
Source: The Straits Times –8 December 2012
Sentosa Cove prices inch up again
Buying interest has crept back into the exclusive Sentosa Cove estate, which boasts some of the most expensive waterfront homes in Singapore, after a lull in sales last year.
But market activity in the millionaires' playground is still far from its heyday a few years ago.
Developers have sold 65 apartments so far this year, more than the 55 units for the whole of last year.
This is, however, still well down on the 141 units sold in 2010, according to caveats lodged with the Urban Redevelopment Authority (URA).
On the landed property front, 23 homes have changed hands so far this year, largely in line with last year's total of 24 transactions.
But despite the uptick, the market was again down from the 62 landed homes sold in 2010.
Experts note that the landed and non-landed segment of Sentosa Cove are two distinct markets that do not necessarily move in tandem.
The landed segment of the market has enjoyed new price records this year even though sales volumes have only held firm.
Average prices for landed homes have risen 6 per cent from $2,097 per sq ft (psf) of land area to $2,216 psf this year, according to the URA caveats.
A 10,111 sq ft bungalow on Ocean Drive, for instance, was recently sold for $32.5 million, which works out to $3,214 psf of land area.
In March this year, embattled surgeon Susan Lim sold her sea- facing bungalow for $39 million, a record absolute price for the upmarket enclave.
While buying interest in the non-landed segment has grown, apartment prices at some projects are still below their peaks.
Take, for instance, 264-unit The Oceanfront.
While average prices peaked at $2,481 psf in August 2007, they were in the $2,000 psf range in the May to November period this year, according to data collated by Square Foot Research.
There are also hundreds of units sitting unsold at projects such as Residences at W Singapore.
Average prices for non-landed transactions this year have dipped 3 per cent to $2,254 psf from $2,324 psf a year earlier.
Experts say that landed homes at Sentosa Cove remain in demand as it is the only area that non-permanent resident foreigners can pick up such units.
The 99-year leasehold apartment units, however, face stiffer competition as there are many freehold alternatives in the prime districts of 9, 10 and 11 on the mainland that overseas buyers can take their pick from.
Source: The Straits Times –8 December 2012
COMMERCIAL MARKET
Strata offices enjoy good demand
An office floor at Samsung Hub along Church Street has been sold for nearly $39.4 million or $3,000 per square foot based on its strata area of 13,132 sq ft. On psf basis, this marks a fresh high for the building, which is in the Raffles Place area.
An Asia-based investor is said to be buying the 16th floor of the 30-storey building. BT understands it plans to occupy the space.
Samsung Hub, which received Temporary Occupation Permit in November 2005, is on a 999-year leasehold site.
The floor just transacted was sold by a partnership between the Buxani Group and offshore investors advised by Mukesh Valabhji of Seychelles-based Capital Management Group.
Last year, the same partnership sold Samsung Hub's 20th floor - which is also 13,132 sq ft in area - for $2,800 psf. It was bought by a China investor.
The Buxani-Capital Management Group tie-up is now left with four of the six floors it clinched in the building from OCBC Properties in 2007 for $122.44 million or $1,560 psf. The six floors added up to 78,490 sq ft.
Market watchers say the record price just achieved at Samsung Hub reflects the still strong sentiment for strata offices.
$1.94 billion worth of such units have changed hands so far this year (the latest transaction captured was on Nov 22) - up from $1.33 billion for the whole of 2011.
Roughly half or $950 million of the 2012 deals are in four new projects under construction.
Leading the pack is Paya Lebar Square, with about $520 million worth of office units sold so far this year, followed by Eon Shenton ($160 million), Oxley Tower ($148 million) and PS100 ($123 million).
In addition, the momentum continues to be strong for resale transactions of strata offices in completed projects such as The Adelphi near City Hall MRT Station, The Central in the Clarke Quay area, Burlington Square along Bencoolen Street, GB Building in Cecil Street and International Plaza next to Tanjong Pagar MRT Station.
In psf terms, the most expensive office transaction so far this year was $5,379 psf - for a 614 sq ft third floor office unit in the 999-year leasehold Peninsula Plaza, amounting to $3.3 million. The deal took place in July.
In June, the Buxani-Capital Management partnership completed its purchase of 51 strata offices at Parkway Centre in Marine Parade Central - and it has since resold 11 units at an average price of above $1,600 psf. It paid nearly $53.4 million or $1,043 psf for the 51 units. Parkway Centre is on a site with a balance lease term of 68 years.
Over in Bencoolen Street, a Guthrie-Sun Venture tie-up which acquired 66 office units in Burlington Square from a partnership between Wing Tai and City Developments earlier this year has resold 30 of these units at $1,782-$1,893 psf.
All eyes now are on Far East Organization's upcoming launch of a new project with frontage on Robinson Road and Cecil Street. Located next to Capital Tower, the 99-year leasehold development will have offices and medical suites - primarily for sale. The project was originally named The Index but it will now be known as SBF Center, after the Singapore Business Federation, which will be a major occupier. However, it has yet to be decided whether SBF will buy the space or lease it from Far East.
Source: Business Times –8 December 2012
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