ST: Rents falling at most condos

Rents falling at most condos 

New supply of homes and weak demand could mark start of downward trend

 

TENANTS, rejoice: rents have begun to fall at a majority of condominiums in Singapore on the back of fresh home supply and a turnaround in market sentiment.

Two in every three projects with a substantial number of leases saw rents drop in the second quarter from the previous three months, according to the latest data from the Urban Redevelopment Authority (URA).

 

This marks a reversal from the last two years, when private home rents soared, especially in expatriate-friendly areas, due to an insufficient supply of rental homes and an influx of expat tenants.

 

Now, rents are dipping in almost every location around the island, but particularly in the two areas most popular with expats – East Coast and the central region around Orchard Road.

 

This could mark the start of a downtrend that experts say may worsen with more home completions, especially in the prime areas, where rents have reached stratospheric levels.

 

URA’s data analysed rents in developments with at least 100 units and that have 10 or more leases each in the first and second quarters this year. Of the 124 projects in this category, 80 – or about 64 per cent – saw rents drop between the two quarters.

 

But URA also has a more comprehensive rental index that covers all rental transactions, including those at projects with fewer than 10 leases. This showed that rents across the country rose 2.5 per cent overall in the second quarter, the smallest rise in three years.

 

Rents are taking a hit largely because the stock of homes available for rental has risen, property consultants said.

 

Several major projects have recently been completed that were heavily bought into by investors planning to rent out their units. These include the 640-unit Icon in Tanjong Pagar, a 430-unit tower at Sail @ Marina Bay, the 600-unit Citylights at Lavender, and the 546-unit Sea View in Amber Road.

 

Ms Tay Huey Ying, director of research and advisory at property firm Colliers International, said the ‘peakish’ rents could also be due to the current run of high inflation, pushing up living costs in general and making expats more resistant to any rental rises.

 

Another source of rental demand, collective sale sellers, has also dwindled due to the delay in demolishing several en-bloc sale estates amid a slow property sales market, she added.

 

Colliers’ own research showed that monthly rents of luxury apartments fell 3 per cent in the first six months of this year. A 1,000 sq ft apartment was fetching $6,730 in June, down from $6,930 in December last year.

 

But Ms Tay said luxury rents are unlikely to fall by more than another 10 per cent in the second half, as Singapore remains attractive to expats.

 

Mr Colin Tan, head of research and consultancy at Chesterton International, agreed that the rental declines in the prime central districts will be ‘more gradual than elsewhere as their central location means there will be no lack of demand’.

 

‘At the other end of the rental market, in far-flung locations such as Changi and Pasir Ris, the declines are expected to be more pronounced as they will face the twin problems of weak demand and declining rentals,’ he added.

 

Source: Straits Times

New Project Launch by Developer: Scotts Tower

New Project Launch by Developer: Scotts Tower

 

Developer: Far East

 

Location: Scotts Road

 

Tenure: Freehold

 

Site Area: 65,663sqft

 

Type of Developement: 1 block of High Rise Condominium 31-storey

 

Total Units: 67

 

Unit Types:

3 Bdrm – duplex unit

3 Bdrm + study (simplex unit)

4 Bdrm + study (duplex unit)

4 Bdrm + study (Penthouse Duplex Unit)

 

Parking Lots: 221 (3 lots per unit)

 

 

Please contact us if you need further details on the above-mentioned projects or any other projects’ details. We would be more than happy to be of assistance.

New Project Launch by Developer: Urban Resort

New Project Launch by Developer: Urban Resort

 

Developer: Capitaland

 

Location: 32 & 32A Cairnhill Road

 

Tenure: Freehold

 

Type of Developement: High Rise Condominium 1 Block of 18-storey & 1 Block of 20-storey Residential Area

 

Total Units: 64

 

Unit Types:

3 Bdrm – 2121 sqft (30 units)

4 Bdrm – 2530~2551 sqft (30 units)

Penthouse – 4370 sqft (1 unit)

Duplex Penthouse – 4693~4919 sqft (2 units)

 

Facilities:

1) 50m Lap Pool

2) Swimming Pool

3) Wading Pool

4) Childen’s Pool

5) Garden Pavilion

6) Pool Pavilion

7) Children Play Area

8) Sky Terrace (2nd Storey)

9) Gymnasium

10) Multi-purpose Room

11) Changng Rooms

12) Steam Room

13) BBQ Area

14) Jacuzzi

 

 

Please contact us if you need further details on the above-mentioned projects or any other projects’ details. We would be more than happy to be of assistance.

Condo sales in S’pore hit by bad news from US

Condo sales in S’pore hit by bad news from US

 

THE bad news coming out of the United States last week took its toll on property sales in Singapore over the weekend.

Two newly released projects sold fewer than 20 units each, as homebuyers’ caution deepened after the collapse of US bank IndyMac and the forced rescue of mortgage giants Freddie Mac and Fannie Mae.

 

CapitaLand’s Wharf Residence in Tong Watt Road, which started taking bookings over the weekend, sold just over 10 units, sources said.

 

The 173-unit condominium off River Valley Road is priced between $1,500 per sq ft (psf) and $1,900 psf. Unit sizes start at about 1,000 sq ft, so a two-bedroom unit costs $1.6 million to $1.7 million.

 

Meanwhile, Frasers Centrepoint sold about 19 of the 48 units it released at Woodsville 28 near Potong Pasir MRT station.

 

But the developer, which priced the units at an average of $880 psf, said it was ‘quite encouraged by the take-up rate’.

 

‘It was above our expectations, given the general sentiment in the market,’ said a spokesman.

 

Woodsville 28 has two- and three-bedroom units, starting from 829 sq ft, with an average two-bedder costing about $755,000.

 

Sales also continued at a snail’s pace at other condos that have recently been launched, despite reports of large crowds at showflats.

 

OLA Residences in Mountbatten Road has sold only about 10 of its 50 units since sales began three weeks ago.

 

‘There are a lot of walk-ins but offers from buyers are coming in too low,’ said a property agent. The freehold project is priced at about $1,200 psf on average.

 

Two smaller projects, The Scenic@Braddell in Braddell Road and Jubilee Residence in Pasir Panjang, have sold about 10 units each in the last few weekends, putting them at the halfway mark in sales. The Scenic is priced at $820 psf to $850 psf, while Jubilee is going for $900 psf.

 

Cheaper projects are seeing better sales. Buyers have picked up more than 60 of the 212 units at Beacon Heights in St Michael’s Road for an average price of $800 psf, agents said. The 999-year leasehold condo developed by Kim Eng Securities started sales two weekends ago.

 

‘Buyers are still waiting to see if prices go down further, and this will continue until the US situation stabilises,’ said Mr Ku Swee Yong, director of marketing and business development at property firm Savills Singapore.

 

‘There are definitely buyers with enough money to buy new properties, but they are doing their homework these days.’

 

 

 

Source: Straits Times

For Sale/Rent: Cuscaden Residence, 3+1, 1485sqft, #1x-02

For Sale/Rent: Cuscaden Residence, 3+1, 1485sqft, #1x-02

 

Cuscaden Residence, 26 Cuscaden Road

 

District 10

 

3+1 bedroom, 1485sqft

 

Full Condo Facilities

 

Tenure: Freehold

 

TOP: 2001

 

Located at the prime area of Orchard, Cuscaden Residence offers a luxury living that one would always dream of. With fine dine around here, one is so spoilt of choice. Not forgetting shopping is around the corner.

 

For Sale: $3,420,000 or $2,300psf

 

For Rent: $9,000/month

 

View from Living area

 

View from the Masterbedroom

 

Floorplan

 

Living Area

 

Masterbedroom 1

 

Masterbedroom Wardrobe Area

 

Master Bathroom

For Sale/Rent: Urbana 2bedroom 1012sqft #2x-04

For Sale/Rent: Urbana 2bedroom 1012sqft #2x-04

 

Urbana: 1 River Valley Close

 

District 09

 

2bedroom, 1012sqft

 

Full Condo Facilities

 

Tenure: Freehold

 

TOP: May 08

 

Located at the heart of River Valley and on top of the slope. Urbana is truly a place you can call home. A gentle 10min walk from Somerset MRT Station where there are plenty of eateries along the Killiney Road, not forgetting there is a Supermarket too.

 

For Sale: $1,600,000 or $1,581psf

 

For Rent: $6,000/month

View from Living Area

View from the Balcony

 

Location Map

 

 

Siteplan

 

Floorplan 

 

 

 

 
 

 

For Rent: The Sail 2Bedroom 861sqft

For Rent: The Sail 2Bedroom 861sqft

 

The Sail @ Marina Bay

 

District 01

 

2bedroom, 861sqft

 

Full Condo Facilities

 

Tenure: 99years leasehold

 

TOP: June 08

 

Located at Marina Bay, The 1st Residential in Marina Bay. Walking distance to all the major offices inside CBD, Raffles Place MRT station and also to the future Integrated Resort, Marina Sand. This is the place truly to be Work, Live and Play!

 

For Rent: $6,000/month

 

View from the Living Area

 

– Siteplan

 

– Floorplan

 

 

Living Area

 

Study Room

 

Bedroom 2

 

Kitchen

New Project Launch by Developer: The Wharf Residence

New Project Launch by Developer: The Wharf Residence

 

Developer: CapitaLand

 

Address: Tong Watt Road, off Mohd Sultan Road

 

Tenure: 999 years

 

TOP: March 2013

 

Site Area: 76, 956 sq ft

 

Plot Ratio: 3.8

 

Type of Development: 4 tower blocks of 10/14/15/23 Storey and 13 retrofitted houses

 

Total units: 186

 

Unit Mix:

2 bedroom: 1012 to 1130 sq ft, 110 units

3 bedroom: 1313 to 1733 sq ft, 54 units

4 bedroom: 2196 sq ft, 4 units

Penthouse: 2745 to 5565 sq ft, 5 units

Houses: 4478 to 4930 sq ft, 13 units

 

Estimated $1500+

 

Special Feature: Situated on high ground, there are 13 Vintage Houses conserved in their entirety, providing a pleasant contrast to the contemporary structure of the apartment blocks sitting behind.

 

Facilities: sky terrace on the 24th floor, with outdoor cooking pavilion, overlooking the breathtaking city skyline.

 

Apartment furnished with branded kitchen & appliances

 

Interest absorption & Stamp duty reimbursement.

 

 

Please contact me if you need further details on the above-mentioned projects or any other projects’ details. I would be more than happy to be of assistance.

Biz Times: Private home market stirs to life again

Private home market stirs to life again

Developers’ Q2 sales double to 1,542 from Q1 but still a far cry from 2007

 

(SINGAPORE) Developers sold 1,542 private homes in the second quarter, double the 762 units in the preceding quarter. This takes the total sold in the first half of the year to 2,304, according to the Urban Redevelopment Authority yesterday.

 

The Q2 number was shored up by the sale of 801 private homes in June alone – a huge jump from the 453 units sold in May and, in fact, the best monthly showing since August last year, when the impact of the US sub-prime crisis struck home.

 

Even so, the first-half sales – these numbers do not include executive condos – amounted to just about a quarter of the volume in the same period last year.

 

CB Richard Ellis predicts that full-year sales volume will come in at 4,000-5,000 units, less than half the record 14,811 private homes that developers sold in 2007.

 

BT’s analysis of URA’s data showed that the stock of private homes that could be launched for sale immediately but have been held back continued to mount, hitting 13,005 at end-June, up 20.5 per cent from the preceding quarter and 68.5 per cent higher than the 7,720 units as at the end of last year.

 

These units are in projects with the necessary approvals for sale – that is, they have secured sales licence and Building Plan approvals – and include projects under construction as well as those that have received Temporary Occupation Permit.

 

In addition, there were 3,379 units launched but unsold at the end of June this year – some 40.3 per higher than the end-2007 number.

 

‘Developers probably got more projects launch-ready by end-June, encouraged by the recent response at showflats,’ a property consultant said.

 

Looking ahead, this pool of yet-to-be-launched units is expected to be dynamic. ‘For the next one to two quarters, we could see the stock coming down if take-up remains encouraging. In turn, the encouraging sales may also spur other developers to get projects launch-ready and that could again add to the pool of yet-to-be-launched units,’ she added.

 

URA’s latest monthly survey of developers’ homes sales data in June showed ‘no consistent pattern of a downward adjustment in prices of new launches’, CBRE executive director Li Hiaw Ho said.

 

‘The differential between the prices contracted in June and in May or April could be attributed to adjustments for floor height and orientation. However, in line with the flash estimates, we expect only a marginal upside in residential prices in Q2.’

 

Developers launched 1,069 private homes in June, a jump of 125 per cent from 476 units in May.

 

For the whole of Q2, developers launched a total of 1,820 private homes, taking the figure for first-half 2008 to around 3,200 units.

 

Knight Frank’s analysis showed that, in June, most units were launched for sale in the Rest of Central Region (RCR) – which commanded a 57 per cent share or 612 units.

 

The region also accounted for 57 per cent of total private homes sold by developers in June. Successful project launches such as Dakota Residences and Clover By The Park helped boost RCR’s share in June.

 

For Q2, RCR also made up the lion’s share or 44.2 per cent of units launched, according to Knight Frank.

 

The highest-priced transaction in June came to $3,653 per square foot, for a unit at Nassim Park Residences, compared with $4,612 psf for a Scotts Square apartment in May. The lowest priced deal last month was $541 psf for an apartment at Sunflower Regency on Lorong 20, Geylang. In May, the lowest price of $518 psf was set by a unit at Palm Galleria in Telok Kurau.

 

Colliers International director (research and consultancy) Tay Huey Ying said: ‘As developers are increasingly forgoing aggressive pricing strategy in favour of competitive pricing strategy, cumulatively, this will result in a softening in price level for the general market.’

 

She expects developers to ramp up launches before the Hungry Ghosts Month starts on Aug 1, and predicts that launch volume could cross 1,300 units for July. As new launches are expected to be priced attractively, developers’ sales could possibly hit 1,000 units.

 

Source: Business Times

Straits Times: Up 77%: New private home sales

Up 77%: New private home sales 

Best showing since last Sept following US sub-prime woes, but market still cautious

 

SALES of new private homes shot up 77 per cent to 801 units last month, from just 453 in May, on the back of more project launches.

That was the best showing since September last year when the property market slowed in the wake of the United States’ sub-prime woes and stock market jitters.

 

But these numbers do not necessarily signal the return of the good times. The mood in the property market remains cautious, particularly as more bad news emerges from the US, market watchers say.

 

Last month, the total number of units launched by developers – mostly in the mass to mid-end segment – registered a dramatic jump of 124 per cent to 1,069 units, according to monthly figures released by the Urban Redevelopment Authority (URA) yesterday.

 

Developers are stepping up launches despite the weak sentiment as they want to launch ahead of the Hungry Ghost month starting on Aug 1, said Colliers International director for research and advisory Tay Huey Ying. Some home-hunters believe it is unlucky to buy at this time.

 

Some developers hope to clear stocks of 99-year leasehold properties which will become less attractive as the leases run down, she said.

 

Last month’s healthy sales figures were propped up, to a large extent, by the volume done at two large 99-year leasehold projects.

 

The 616-unit Clover by the Park in Bishan, alone accounted for 197 units sold – out of 308 units launched for sale – at a median price of $765 per sq ft (psf). The 348-unit Dakota Residences in Dakota Crescent sold 144 of 210 launched units at $978 psf.

 

Most of the properties sold last month were under $1,000 psf, indicating demand from upgraders, said the director of Savills Residential, Mr Ku Swee Yong. Only projects which were priced realistically sold fairly well, he said.

 

June sales show there is latent demand but buyers are price-sensitive, said DTZ executive director and regional head for consulting and research Ong Choon Fah.

 

Knight Frank director of research and consultancy Nicholas Mak said the number of launches has risen faster than sales figures, which could result in a gradual rise in the number of unsold housing stock.

 

If this stock builds up, it will be one of the factors that could weigh on prices.

 

But for now, this month’s sales figures are expected to be even stronger owing to more new launches, consultants said.

 

However, there should be a drop in next month’s home sales due to the Hungry Ghost month coupled with continuing fallout from the US housing crisis, said Mr Mak.

 

Price weakness, if any, will register only in the third or fourth quarter, he said.

 

The turnout at new showflats remains strong but potential buyers are very cautious when it comes to committing to a purchase, market watchers say.

 

‘There’s no push factor to buy now,’ said Mrs Ong. ‘Sentiment has been affected over the weekend by the US news. But affordability is still there.’

 

As developers are increasingly forgoing aggressive pricing strategies in favour of competitive pricing, cumulatively, the general market will see softer prices, said Ms Tay.

 

Colliers International’s research shows that luxury apartment prices already fell 3.9 per cent from the first quarter to an average of $3,049 psf in the second quarter, she said.

 

Meanwhile, the URA yesterday put up for sale a condominium site that is just next to the Tanah Merah MRT station.

 

Consultants expect a new 99-year leasehold project on the site to fetch average prices of between $700 psf and $800 psf.

 

Source: Straits Times