Monday, June 8, 2009

BTO: URA hotel site available on reserve list

Business Times - 03 Jun 2009

PROPERTY

URA hotel site available on reserve list

Land can yield 450 rooms, 33,906 sq ft commercial space

By EMILYN YAP

THE Urban Redevelopment Authority (URA) yesterday released a hotel site along Kallang River for application through the reserve list.

The first sale site in the new Kallang Riverside growth area comes with a 99-year lease and spans 0.74 hectare. The maximum permissible gross floor area (GFA) is 225,148 sq ft.

URA estimates that the plot can yield 450 hotel rooms and 33,906 sq ft of commercial space, though the actual mix would depend on the developer's plans.

The development can go up to 16 storeys high and will front Kallang River. It will also be near the upcoming Sports Hub. 'Its proximity to the Central Business District and waterfront setting makes it ideal for a hotel development that can cater to business travellers and tourists,' URA said.

Jones Lang LaSalle Hotels executive vice-president Chee Hok Yean noted that the plot may be suitable for an economy hotel. The hotel might cater to a younger crowd, such as sports teams or tourists in town for sporting events, she said.

Knight Frank's director of research and consultancy Nicholas Mak pointed out that the site has a good river view and may fit a three to three and a half-star hotel.

He estimates that bids may range from $48 million to $58 million, which works out to $215 to $260 per sq ft per plot ratio (psf ppr). In April, a reserve list hotel site in Short Street received a committed bid of $8.8 million, which works out to about $200 psf ppr.

Given the weak market however, Mr Mak noted that the site may not be triggered for launch this year. Hotel developers have already bought many sites in the last few years and several still remain on the reserve list, he said. Kallang in particular, is a relatively 'unproven market' for hotels.

Developers interested in the parcel can apply to URA for it to be put up for tender. Because of the site's prominent location, a URA-chaired design advisory panel will guide the development team with its design.

URA had planned to release the site in December last year but later deferred it to finalise planning and development conditions. With the financial and property sectors faltering then, market watchers had felt that the site would not attract interest even if it was available.

URA also reduced the size of the hotel site last year, after market feedback indicated preference for a smaller development. The plot originally had a site area of 1.59 hectares and a GFA of about 484,376 sq ft.

Sunday, June 7, 2009

BTO: Rise in home buyers from China and India

Business Times - 03 Jun 2009

Rise in home buyers from China and India

Indonesians' share of Q1 buys slips; Malaysians are biggest buyers

By KALPANA RASHIWALA

(SINGAPORE) Mainland Chinese were the second largest group of overseas buyers of private homes in Singapore in the first three months of this year.

They accounted for 18 per cent of the 490 caveats lodged for private home purchases in Q1 by foreigners and Singapore permanent residents, compared with an 11 per cent share in the preceding quarter.

On the other hand, the proportion of Indonesian buyers dwindled from 24 per cent in Q4 2008 to 14 per cent, their lowest share in over a decade, according to property consulting group DTZ's analysis of caveats captured by URA's Realis system as at May 29.

'This is due in part to the poorer sentiments in the upper mid-tier and luxury segments which had traditionally generated interest from the Indonesians,' suggests DTZ's senior director and head, SEA Research, Chua Chor Hoon.

Malaysians had the lion's share or 26 per cent of total private homes acquired by foreigners and PRs in Q1 2009, replacing Indonesians who had enjoyed the pole position in Q4 last year.

Indians' contribution also rose from 9 per cent in Q4 2008 to 14 per cent in Q1 2009.

DTZ reckons the rising affluence of mainland Chinese and Indians will see them playing a more significant role on the Singapore property front.

More than 80 per cent of Indians and Malaysians and 60 per cent of the mainland Chinese who invested in private homes on the island in Q1 this year were Singapore permanent residents. In contrast, only 40 per cent of Indonesians who bought in Q1 were Singapore PRs.

The Indonesians, however, seem to have bigger budgets. Forty per cent of Indonesians purchased homes above $1 million in Q1, compared with less than 30 per cent for Malaysians, mainland Chinese and Indians.

Jones Lang LaSalle head of residential Jacqueline Wong said: 'Some private bankers are asking us for help to source for prime residential properties in Singapore for clients from India, Hong Kong and Indonesia. They generally want to buy prime properties, though not necessarily luxury. Some are looking for firesale prices, but fortunately or unfortunately, there are not many in the prime districts.'

Knight Frank executive director (residential) Peter Ow said foreign buyers from the region will return to the Singapore property market in stronger fashion once they see clearer signs of economic recovery in their home markets.

'They want to park their money in Singapore for the usual reasons like stability and transparency; they're waiting for clearer signs that prices are picking up before they enter the market,' he added.

BTO: Foreigners shopping for homes again

Business Times - 03 Jun 2009

Foreigners shopping for homes again

Their purchases of private homes have picked up and the trend could continue

By KALPANA RASHIWALA 

(SINGAPORE) After a nervous lull, foreign buyers are property-hunting again. Their private home purchases in Singapore have begun to recover after bottoming out in Q4 last year, according to the latest analysis of caveats by consultancy DTZ. The momentum is expected to continue.

URA Realis data as at May 29 show that foreigners (excluding Singapore permanent residents) lodged a total 117 caveats for private home purchases in April, a relatively impressive showing given that this was two-thirds of the 174 caveats lodged by these foreigners for the whole of the first quarter of 2009.

The Q1 figure itself was an 11.5 per cent rise from the 156 caveats foreigners lodged in Q4 2008. However, with Singaporeans and PRs posting much bigger quarter-on-quarter increases of 90.8 per cent and 60.4 per cent respectively in caveats in the first three months of this year, foreigners' share of home buying slipped to 6 per cent in Q1 this year, the lowest level since Q3 2004.

On the other hand, fuelled by upgrader demand, Singaporeans' proportion of home buying increased from 79 per cent of total caveats lodged in Q4 last year to 84 per cent in Q1 - the highest proportion since Q3 2001. PRs' 10 per cent share of home buying in Q1 was the lowest since Q4 2004. There were hardly any caveats lodged by corporate purchasers in the first quarter.

'We're seeing more queries from Indonesia and North Asia. They can see the pick-up in buying by Singaporeans and want to ensure that they will also benefit should the market turn around soon,' said DTZ executive director Ong Choon Fah.

Market watchers also observed that generally, foreign buyers' share of total private residential property purchases picks up when prices are escalating and dips during the lull periods. For instance, for each quarter of 1998 during the Asian Crisis, the figure ranged from 4 to 6 per cent. And during the recent height of property buying fever in 2007, foreign buyers' share ranged from 12 to 15 per cent each quarter.

DTZ's Mrs Ong said that with capital appreciation figuring as a major goal for foreign property investors, they would prefer to enter the market on upswings. 'Foreign buying will continue to improve in tandem with the increase in home sales activity, assuming sentiment on the stockmarket remains upbeat and overall confidence returns.'

Foreigners bought 31 per cent more homes in the subsale market in Q1 2009 than in Q4 last year. They picked up 16 per cent more units from developers, Q-on-Q, and 2 per cent more in the resale market. As a result, the subsale market accounted for 27 per cent of private homes acquired by foreigners in Q1; this share was at a 10-year high.

Subsales and resales refer to secondary market deals. Subsales involve projects that have yet to obtain Certificate of Statutory Completion (CSC) while resales relate to projects that have received CSC.

Jones Lang LaSalle head of residential Jacqueline Wong said that foreigners may have been increasingly drawn to the subsale market to pick up properties in Q1 as property launches in the luxury market have almost come to a halt.

'So if foreigners want to buy something prime, they have to turn to the secondary market. They're interested in projects like Ardmore II as well as completed developments like Ardmore Park, Grange Residences and Draycott 8 that lease well,' she added.

DTZ said: 'The appeal of subsale units to foreigners could be due to immediate availability for occupation for newly-completed ones. Seventy per cent of total subsale units bought by foreigners have been granted Temporary Occupation Permit, mostly in H2 2008 and Q1 2009.'

DTZ said that while homes in districts 9, 10 and 15 remained popular with foreigners, they are increasingly more inclined to buy mass-market and mid-tier projects in suburban areas.

Projects with the largest number of foreign buyers in Q1 were The Lakeshore and Caspian, both near Jurong Lake.

As for PRs, their purchases of homes directly from developers surged from 33 in Q4 last year to 115 units in Q1, as most of the mass-market launches during the period appealed to them, DTZ said. The primary market accounted for 36 per cent of homes bought by PRs in Q1 2009, double the 17 per cent share in the preceding quarter. Districts 22, 15 and 23 were the most popular among PRs, whose top picks were Caspian (in District 22) and Alexis.

Table of the caveats – breakdown of private home buyers

 

Singaporeans

Singapore PRs

Foreigners

Companies

2007

Q1

5,332

1,238

1,040

405

Q2

9,640

1,881

1,702

659

Q3

6,327

1,146

1,359

959

Q4

3,512

658

770

351

2008

Q1

2,184

457

450

124

Q2

2,753

524

443

88

Q3

3,297

495

443

89

Q4

1,389

197

156

22

2009

Q1

2,650

316

174

3

April

1,426

194

117

3

Caveat exclude collective sales

BTO: Foreigners shopping for homes again

Business Times - 03 Jun 2009

Foreigners shopping for homes again

Their purchases of private homes have picked up and the trend could continue

By KALPANA RASHIWALA

(SINGAPORE) After a nervous lull, foreign buyers are property-hunting again. Their private home purchases in Singapore have begun to recover after bottoming out in Q4 last year, according to the latest analysis of caveats by consultancy DTZ. The momentum is expected to continue.

URA Realis data as at May 29 show that foreigners (excluding Singapore permanent residents) lodged a total 117 caveats for private home purchases in April, a relatively impressive showing given that this was two-thirds of the 174 caveats lodged by these foreigners for the whole of the first quarter of 2009.

The Q1 figure itself was an 11.5 per cent rise from the 156 caveats foreigners lodged in Q4 2008. However, with Singaporeans and PRs posting much bigger quarter-on-quarter increases of 90.8 per cent and 60.4 per cent respectively in caveats in the first three months of this year, foreigners' share of home buying slipped to 6 per cent in Q1 this year, the lowest level since Q3 2004.

On the other hand, fuelled by upgrader demand, Singaporeans' proportion of home buying increased from 79 per cent of total caveats lodged in Q4 last year to 84 per cent in Q1 - the highest proportion since Q3 2001. PRs' 10 per cent share of home buying in Q1 was the lowest since Q4 2004. There were hardly any caveats lodged by corporate purchasers in the first quarter.

'We're seeing more queries from Indonesia and North Asia. They can see the pick-up in buying by Singaporeans and want to ensure that they will also benefit should the market turn around soon,' said DTZ executive director Ong Choon Fah.

Market watchers also observed that generally, foreign buyers' share of total private residential property purchases picks up when prices are escalating and dips during the lull periods. For instance, for each quarter of 1998 during the Asian Crisis, the figure ranged from 4 to 6 per cent. And during the recent height of property buying fever in 2007, foreign buyers' share ranged from 12 to 15 per cent each quarter.

DTZ's Mrs Ong said that with capital appreciation figuring as a major goal for foreign property investors, they would prefer to enter the market on upswings. 'Foreign buying will continue to improve in tandem with the increase in home sales activity, assuming sentiment on the stockmarket remains upbeat and overall confidence returns.'

Foreigners bought 31 per cent more homes in the subsale market in Q1 2009 than in Q4 last year. They picked up 16 per cent more units from developers, Q-on-Q, and 2 per cent more in the resale market. As a result, the subsale market accounted for 27 per cent of private homes acquired by foreigners in Q1; this share was at a 10-year high.

Subsales and resales refer to secondary market deals. Subsales involve projects that have yet to obtain Certificate of Statutory Completion (CSC) while resales relate to projects that have received CSC.

Jones Lang LaSalle head of residential Jacqueline Wong said that foreigners may have been increasingly drawn to the subsale market to pick up properties in Q1 as property launches in the luxury market have almost come to a halt.

'So if foreigners want to buy something prime, they have to turn to the secondary market. They're interested in projects like Ardmore II as well as completed developments like Ardmore Park, Grange Residences and Draycott 8 that lease well,' she added.

DTZ said: 'The appeal of subsale units to foreigners could be due to immediate availability for occupation for newly-completed ones. Seventy per cent of total subsale units bought by foreigners have been granted Temporary Occupation Permit, mostly in H2 2008 and Q1 2009.'

DTZ said that while homes in districts 9, 10 and 15 remained popular with foreigners, they are increasingly more inclined to buy mass-market and mid-tier projects in suburban areas.

Projects with the largest number of foreign buyers in Q1 were The Lakeshore and Caspian, both near Jurong Lake.

As for PRs, their purchases of homes directly from developers surged from 33 in Q4 last year to 115 units in Q1, as most of the mass-market launches during the period appealed to them, DTZ said. The primary market accounted for 36 per cent of homes bought by PRs in Q1 2009, double the 17 per cent share in the preceding quarter. Districts 22, 15 and 23 were the most popular among PRs, whose top picks were Caspian (in District 22) and Alexis.

Wednesday, June 3, 2009

BTO: Foreigners shopping for homes again

Business Times - 03 Jun 2009

Foreigners shopping for homes again

Their purchases of private homes have picked up and the trend could continue

By KALPANA RASHIWALA

(SINGAPORE) After a nervous lull, foreign buyers are property-hunting again. Their private home purchases in Singapore have begun to recover after bottoming out in Q4 last year, according to the latest analysis of caveats by consultancy DTZ. The momentum is expected to continue.

URA Realis data as at May 29 show that foreigners (excluding Singapore permanent residents) lodged a total 117 caveats for private home purchases in April, a relatively impressive showing given that this was two-thirds of the 174 caveats lodged by these foreigners for the whole of the first quarter of 2009.

The Q1 figure itself was an 11.5 per cent rise from the 156 caveats foreigners lodged in Q4 2008. However, with Singaporeans and PRs posting much bigger quarter-on-quarter increases of 90.8 per cent and 60.4 per cent respectively in caveats in the first three months of this year, foreigners' share of home buying slipped to 6 per cent in Q1 this year, the lowest level since Q3 2004.

On the other hand, fuelled by upgrader demand, Singaporeans' proportion of home buying increased from 79 per cent of total caveats lodged in Q4 last year to 84 per cent in Q1 - the highest proportion since Q3 2001. PRs' 10 per cent share of home buying in Q1 was the lowest since Q4 2004. There were hardly any caveats lodged by corporate purchasers in the first quarter.

'We're seeing more queries from Indonesia and North Asia. They can see the pick-up in buying by Singaporeans and want to ensure that they will also benefit should the market turn around soon,' said DTZ executive director Ong Choon Fah.

Market watchers also observed that generally, foreign buyers' share of total private residential property purchases picks up when prices are escalating and dips during the lull periods. For instance, for each quarter of 1998 during the Asian Crisis, the figure ranged from 4 to 6 per cent. And during the recent height of property buying fever in 2007, foreign buyers' share ranged from 12 to 15 per cent each quarter.

DTZ's Mrs Ong said that with capital appreciation figuring as a major goal for foreign property investors, they would prefer to enter the market on upswings. 'Foreign buying will continue to improve in tandem with the increase in home sales activity, assuming sentiment on the stockmarket remains upbeat and overall confidence returns.'

Foreigners bought 31 per cent more homes in the subsale market in Q1 2009 than in Q4 last year. They picked up 16 per cent more units from developers, Q-on-Q, and 2 per cent more in the resale market. As a result, the subsale market accounted for 27 per cent of private homes acquired by foreigners in Q1; this share was at a 10-year high.

Subsales and resales refer to secondary market deals. Subsales involve projects that have yet to obtain Certificate of Statutory Completion (CSC) while resales relate to projects that have received CSC.

Jones Lang LaSalle head of residential Jacqueline Wong said that foreigners may have been increasingly drawn to the subsale market to pick up properties in Q1 as property launches in the luxury market have almost come to a halt.

'So if foreigners want to buy something prime, they have to turn to the secondary market. They're interested in projects like Ardmore II as well as completed developments like Ardmore Park, Grange Residences and Draycott 8 that lease well,' she added.

DTZ said: 'The appeal of subsale units to foreigners could be due to immediate availability for occupation for newly-completed ones. Seventy per cent of total subsale units bought by foreigners have been granted Temporary Occupation Permit, mostly in H2 2008 and Q1 2009.'

DTZ said that while homes in districts 9, 10 and 15 remained popular with foreigners, they are increasingly more inclined to buy mass-market and mid-tier projects in suburban areas. Projects with the largest number of foreign buyers in Q1 were The Lakeshore and Caspian, both near Jurong Lake.

As for PRs, their purchases of homes directly from developers surged from 33 in Q4 last year to 115 units in Q1, as most of the mass-market launches during the period appealed to them, DTZ said. The primary market accounted for 36 per cent of homes bought by PRs in Q1 2009, double the 17 per cent share in the preceding quarter. Districts 22, 15 and 23 were the most popular among PRs, whose top picks were Caspian (in District 22) and Alexis.

Monday, June 1, 2009

STI: dr hols

June 2, 2009

dr hols

 

I am planning a nine-day trip to Lapland, Finland, during the Christmas period. What are your suggestions on the activities and sights to cover?

 

Julie Seah

 

Located far north of Finland, towards the Arctic, Lapland gets very cold during that time. The temperature can plunge to as low as minus 50 deg C.

 

Since you are going over the yuletide season, what better way to spend it than with Father Christmas himself at the city of Rovaniemi, where Santa Claus has his own village.

 

Activities to consider are dog sledding, snowmobiling, skiing and snowboarding. Levi is one of the largest winter resorts in Lapland for the latter two activities.

 

To hear the sound of crushing ice as a ship slices through the frozen Arctic sea, hop on the Icebreaker Sampo at the town of Kemi.

 

While in Finland, you can try a traditional meal of reindeer and mashed potatoes. Just don't tell Santa you ate his transportation.

 

What is there to do in Bali other than surfing and going to the beach?

 

Kan Kum Wah

 

Try the hot springs up north. Apart from the Banjar Hot Springs where you can rest and relax, there is also the Gitgit Waterfalls.

 

Couples, please avoid the pools located about 10km south of the town of Singaraja: Local folklore believes that couples who swim in these pools will break up.

 

Instead, lovebirds should visit the Yeh Sanih freshwater springs, which offer clear natural swimming pools with a garden backdrop. No ill omens are attached to this place, so feel free to splash around with your partner.

 

Also, you could go diving and snorkelling off the island of Nusa Penida, where you will find big schools of fish and sea turtles.

STI: Monied crowd in Mykonos

June 2, 2009

Monied crowd in Mykonos

Rising above its bad rep as a B-grade destination, Mykonos is drawing the rich and famous again

By jansen lim 

 

It was well after midnight. Caprice Bar with its oceanfront terrace overlooking Mykonos Harbour was crammed with tourists clutching pricey cocktails adorned with tiny umbrellas.

 

Perhaps inspired by the warm moonlit night, one middle-aged woman started to dance to some modern Greek music, her face absolutely serene as she held her arms out for an imaginary partner.

 

It was a minor miracle for her to get even a sliver of the crowd's attention. After all, they were in gorgeous Mykonos, surrounded by abundant cerulean waters and unblemished blue skies.

 

But barely a decade ago, not even such natural beauty could draw the glitterati to the shores of this tiny island one-seventh the size of Singapore.

 

Beaches were overcrowded with nudists and college students, and its meandering, cobbled streets were cluttered with backpackers, tour groups and touts trying to sell trinkets to sunburnt tourists.

 

Hotel facades were dilapidated, merchandise overpriced, and shops offering tattoos and condoms part of the vulgar commercial landscape.

 

It was a far cry from the glamour years when former US First Lady Jacqueline Onassis went there and it turned into one of the world's favourite playgrounds for celebrities.

 

According to Mykonians, the masses are still very much part of the scene. However, what has bounced back in recent years is the luxury cachet.

 

The once rough-and-tumble lanes of Mykonos' main districts have reclaimed their original splendour as pedestrian-only circuits of upscale boutiques and gourmet restaurants.

 

New luxury hotels have sprung up all over while older ones have spiffed up to showcase a winning combination of aesthetic and simplicity.

 

What has not changed over the decades is its longstanding reputation as a 24-hour party zone. Famous DJs fly here to spin their tunes at various jam-packed discos.

 

Before you set off to dance the night away, it may be worth checking out some of the bars such as Sunset Bar and Caprice Bar in the Little Venice district, the island's most charming spot with two- and three-storey houses fronting the ocean.

 

Here, the crowd includes rail-thin women and their middle-aged male counterparts smoking away while sipping martinis and ouzo (an anise-scented Greek liqueur), and buff, well-heeled men engrossed in conversations about Buddhism and art. These bars are the perfect setting to watch the sunset and indulge in a glass of Peloponnesian chardonnay. A drink costs between $8 and $15.

 

Then it is off to Chora, the island's main town, reputed for being an area that breathes youth and music, and for lives lived with abandonment.

 

Popular clubs here include Skandinavian Bar and Porta (no cover charge, unlike in Singapore), which keep the city's insomniacs up till sunrise with throbbing dance music. By 3am, there will hardly be room on the dance floor for one more young body, no matter how slender and blond it might be.

 

Apart from the hotels, bars and restaurants, the beaches have also been swanked up. Although a few such as Super Paradise and Elia can still be overcrowded especially at the height of the tourist season.

 

The rich and beautiful would normally be seen at Psarou Beach, where teak wood furniture from boutique restaurants spill onto the sand and expensive motor yachts bob at the bay.

 

A few miles from Super Paradise Beach, Agios Sostis is an underused beach where you can easily find a prime spot of sand which feels like a continent away from the tanner-than-thou, sun-worshipping crowd. Occasionally, you may spot a few nudists tucked away somewhere but there is hardly a trace of impropriety.

 

Sun and sand aside, Mykonos also enchants with its quaint loveliness. Whitewashed cubic stone buildings with bougainvillea and brightly painted doors dot almost the entire island.

 

And around every bend lurk monuments and landmarks from the pages of Greek history and mythology. The island itself was named after a mythical hero called Mykonos, apparently the grandson of Apollo.

 

For a survey of the island's rich past, visit the Archaeological Museum, the Aegean Maritime Museum and the Folklore Museum. They showcase a collection of classical pottery, figurines, maritime memorabilia and handicraft from various eras. Admission to each museum is about $8 a person.

 

Similarly, the neighbouring islet of Delos, an open-air archaeological museum, also features many spectacular ruins, sculptures and temples. Regarded as the birthplace of Apollo, it is easily accessible by boats operating at regular intervals ($10 a person). Short tours ($25 a person) are available to guide tourists through a gamut of archaeological heritage from the Temple of Isis and the Marble Lions to the Shrine of Dionysus and Sanctuary of the Twelve Gods.

 

The boat ride to and from Delos is hardly anything to shout about, given the vessels' creaky seats and rusty hand rails. But halfway into the 40-minute journey, a certain alchemy begins to take place.

 

The Mediterranean wind gets drowned out by the muttering of superlatives as passengers give themselves over completely to the sight of whitewashed architecture, golden sands, and blossoming bougainvillea. All that is missing is perhaps a poet to distil these natural wonders into verse.

 

stlife@sph.com.sg

 

5 things to do

 

1 Use sunscreen with a high SPF liberally if you are visiting during the summer months from June to September.

 

2 Find a bar that is within walking distance of your hotel if you decide to party the night away. Taxis are hard to find especially after midnight as there are only about 30 cabs operating on the island.

 

3 Stroll down Matogianni Street, home to a wide range of products, including handicraft and jewellery by Greek designers.

 

4 Always ask for the prices of cocktails and finger food at the beach bars before placing your order. You do not want to end up paying €10 (S$20) for a soda.

 

5 Mingle with the Mykonians as they may share with you some of the island's best-kept secrets regarding where to eat, shop and hang out.

 

2 don'ts

 

1 Don't expect service providers to be customer-friendly. For instance, if you were to ask for a cup of ice, they may tell you that your bottled water or soda is cold enough. Such brusque encounters can be rampant.

 

2 Don't attempt to climb the many narrow goat trails on the island as they can be slippery and dangerous.

 

Getting there

 

To get to Mykonos, you have to first fly to Athens. Singapore Airlines and Thai Airways have daily flights there. Fares start at $1,800.

 

At Athens, transfer via Aegean Airlines (www.aegeanair.com) or Olympic Airlines (www.olympicairlines.com). Or take a ferry such as Blue Star Ithaki (www.greekferries.gr/).

 

A ferry ride is more affordable (about $100) and offers a scenic route, although the journey can take up to five hours.

 

For hotels, check out www.venere.com.

 

A double room may cost anything from $50 (budget) to $400 (luxury). Most hotels provide airport or port transfer.

BTO: Momentum spurs series of project launches

Business Times - 02 Jun 2009


Momentum spurs series of project launches

But consultants warn that the buying drive may not be sustainable

By EMILYN YAP

 

STRIKING while the iron is hot, more developers - big and small - are riding on buying momentum to relaunch or spur interest in their properties.

 

Hoi Hup Realty has soft-launched the freehold Shelford 23 in the Bukit Timah area. Of the project's 33 apartments, close to half have been sold at an average price of $1,250 per square foot (psf).

 

Buyers can opt for an interest absorption scheme at no extra cost, Hoi Hup told BT. The project is expected to receive a Temporary Occupation Permit (TOP) in 2012.

 

Hoi Hup opened Shelford 23's showflat for preview in September last year but later closed it. The average launch price then was $1,400 psf. Based on Urban Redevelopment Authority (URA) data, no units had been taken up by April this year.

 

Preparations to launch the freehold Holland Residences near Holland Village also appear to be under way. The development, by Allgreen Properties, comprises three five-storey blocks with a total of 83 units. It is due to obtain TOP in a few years. BT understands that private previews may start from end-June and that agents are currently ascertaining interest.

 

Similarly, the freehold Nathan Residences in the River Valley area may soon be back on the market. Indicative asking prices appear to start from $1,200 psf. According to URA data, developer Tat Aik Property launched the 91-unit freehold project in September last year but nothing had been sold by April this year.

 

Projects in the east are also getting in on the action. Private previews of Oasis@Elias in the Pasir Ris area could start in the next few weeks. BT understands that launch prices could be in the range of $600 psf. The 99-year leasehold Chip Eng Seng development has 388 units.

 

Meanwhile, marketing of the 26-unit Spring@Langsat near the Eunos MRT station began last Friday night.

 

Over in the west, City Developments (CDL) said last Friday that it is accelerating plans to launch a project at the former Hong Leong Garden Condominium.

 

Sentiment in the residential property sector has improved in the past few months. And brisk sales recently have encouraged more developers to try their luck.

 

Evan Lim & Co said last Friday that it sold the last 44 units at Parc Centennial after a relaunch some two weeks ago. And CDL said that its Botannia is fully sold, with the 33 remaining units having been taken up in the past few weeks.

 

Despite the activity, some property consultants warned that the buying momentum may not be sustainable until there are clear signs of a global economic recovery.

BTO: Developers sell close to 1,200 homes in May

Business Times - 02 Jun 2009


Developers sell close to 1,200 homes in May

Estimated number based on BT survey comparable to April figures; Frasers Centrepoint leads the pack

By KALPANA RASHIWALA AND EMILYN YAP

 

DEVELOPERS sold an estimated 1,200 private home units in May, according to market watchers. This is comparable to the 1,207 units they sold in April, based on official Urban Redevelopment Authority (URA) numbers.

 

A BT survey across nine developers as well as some property agents yesterday already showed that some 1,130 units were sold last month. 'Developers could have easily sold about 1,200 units in May if you include all the smaller pockets of developments as well,' a seasoned residential property consultant estimated.

 

However, BT understands that some units may also be returned by buyers who may have got caught up in the home-buying frenzy fuelled by the stockmarket rally in the past few weeks.

 

Frasers Centrepoint sold a total 294 units in May - comprising 186 units at Martin Place Residences at Kim Yam Road, 46 at Caspian in the Jurong Lake District, 22 units at Woodsville 28, and 40 homes at Waterfront Waves.

 

Frasers Centrepoint is developing Waterfront Waves, near Bedok Reservoir, jointly with Far East Organization. The latter sold a total of 165 units (inclusive of Waterfront Waves) last month.

 

BT eliminated the double-counting for joint-venture projects in arriving at the May sales tally.

City Developments reported total sales of 138 units (of which 97 units came from The Arte at Thomson and 36 units from Livia in Pasir Ris) in May.

 

CapitaLand also achieved brisk sales for The Wharf Residence at Tong Watt Road.

 

EL Development also found buyers for a total of 74 units last month (comprising Parc Centennial at Kampong Java Road and Rosewood Suites in Woodlands).

 

Soilbuild is understood to have sold close to 90 units at The Mezzo in the Balestier location. In other developments, sales of around 30 units were seen for Kovan Residences and 21 units at BelleRive in Bukit Timah.

 

According to official government numbers, developers sold 1,332 private homes in February, followed by 1,220 units in March and 1,207 units in April.

 

Lower property prices have been the main attraction for buyers, said DTZ executive director Ong Choon Fah.

 

Many developers have either re-priced or re-sized their units to make them more affordable.

 

Many people also feel that residential property prices have corrected substantially, she added.

 

'The thinking is: whether it's the bottom or not, probably the worst is over so it's about time to go in.'

 

The recent stockmarket rally has also helped to improve sentiments, Mrs Ong said.

 

With sales momentum gathering, developers have been gradually inching up prices for mass-market and mid/upper segment projects, following earlier price reductions from the 2007 peak levels.

 

However, pricing power is not expected to return to developers of luxury projects anytime soon. 'The price push in 2006-2007 period came from overseas buyers; this segment is still out of action,' a developer said.

 

A veteran developer observed that buyers now include those who had been sidelined by the rapid price surge in 2007.

 

Whereas the 2006/2007 residential property bullrun was substantially wealth-driven, with a strong element of overseas money, the current recovery in home buying has started in the mass-market and is now permeating to the mid/upper-middle segments, he added.

 

'So this is a traditional, bottom-up recovery, which is more sustainable. Upward price movements will be constrained by affordability at the end of the day,' he added.

 

DTZ's Mrs Ong too agrees that while there is 'cautious optimism' in the property market, developers are unlikely to raise prices significantly at this point in time.

 

Some developers may have lowered the level of discounts for projects that have sold well but they are doing this carefully.

 

'You don't want to derail the momentum that has been built up,' she said.