Property News & Market Trends

Singapore property news in a nutshell

$885.5m foreign investments in just 6 months!
Compared to $651.84m in 2006! That's 20% more at half time. That's what drives the prices of enbloc in all areas. Just a peep into the crystal ball will tell us that 2007 will be the greatest enbloc sales ever to occur in Singapore! With such massive push, it's little wonder why there are still die-hards for buying enbloc potentials.

The question is - when would these funds run out? Analysis by CBRE indicates purchases by foreign investors in 2007 is only 11.4% out of $7.13b total worth of investment property. In 2006, foreign funds is a mere 7.12% of a total of $8.17b. This would be partially driven by the fact of aggressive government initiatives such as the IR, F1 & the push for 7m tourists by 2015 and a bustling 6m population.

Then again, CBRE also shows that the number in prime district 9 has dropped to 16% compared to 39% of all transactions in 2006 while combined districts of 9, 10 and 11 has dropped from 68% in  2006 to 47% to date. In fact, non prime areas are catching up on the enbloc sales fever.

Capitaland buys Char Yong Gdns for $420m - that's a record $1,788ppr!
Located at the corner of Cairnhill and Hullet roads and next to the 93,274 sq ft freehold site Silver Towers plot which also belongs to Capitaland who bought it at $1,107ppr. It's only logical for Capitaland to amalgamate the two plots to achieve a lower $1,400ppr.

If CapitaLand breaks even at $2,200psf, it has a slight price disadvantage to Sing Holdings nearby Hillcourt Apartments at $1,542ppr. However, with its much bigger site, it can produce better yield and prestige. CapitaLand may partner Wachovia Development Corporation to develop the Char Yong site. The project may be launch in end-2008.

Dakota Crescent site fetches top bid of $524ppr
For a 99-year leasehold plot, the state tender attracted as many as 15 bids above $400ppr. Such prices will raise the the value of the Mountbatten Road/Old Airport Road surrounding area. With a likely breakeven price of $800 psf and a 30% margin, that would meant a handsome selling price at $1040psf.

If Wing Tai can achieve an average price of $1,500-1,600 psf for its freehold The Riverine(near Kallang riverside), Ho Bee and NTUC Choice Homes will not find any problem selling the 20 storeys high with more than 300 units. The project will start selling by mid-2008.

Alexandra Centre - collective sale at $45 million
The 50,838 sq ft site is for residential use with first-floor commercial use. It can be built up to four storeys and the allowable plot ratio is three. The development charge (DC) is estimated at $1.21 million. The property is about 25 years old and at present there are 12 ground floor shops and 12 apartments. Each owner should get about $1.25m each while shopowners will get about $2.5m.

Foreigners command a strong presence for 1st Quarter
Foreign companies bought 538 homes out of the total 7,042 caveats lodged for private homes in Q1. In Q2 1996, companies bought 462 private homes while the figure for Q3 1999,  it was 413. Amaryllis Ville got 35, The Fernhill wrap up 24, 12 goes for Water Place and 11 opt for Marina Bay Residences.

In total foreigners (including PRs) snapped up 1,938 private homes in Q1. Foreigners bought 540 in Q1 2007 from developers but bought 1,315 units from resale market. Foreigners accounted for a 32% in resale units. Projects preferred by foreign buyers in the secondary market in Q1 included Costa del Sol, Caribbean at Keppel Bay, The Nexus, Cuscaden Residences, Pebble Bay and Leonie Gardens.

Districts 10, 9 and 15 were the three most popular secondary market locations for foreigners. As for the primary market, they were D9, 10, 11, 15 & 1. Tribeca, Residences @ Evelyn, RiverGate, St Regis Residences, Waterfall Gardens and Marina Bay Residences were among the favourite projects.

Another case of "I'm not moving!" enbloc saga
When will enbloc owners wake up to the reality that once the deal is sealed, you have hardly any chance of regression unless you can prove foul play. He was the last one left out of 140 owners, and City Developments (CDL) wants to take legal action against him if he thinks otherwise. Mr Chan Kin Foo busted the the extended deadline by May 25. Unfair? Do the math again. After the legal cost & compensation, it's definitely below Mr Chan's take home cash. 

East Coast enclave
Prices averaged $850 to $1,000 per sq ft (psf) in Q1, up 40 to 45% from $600 to $700 psf a year ago.
- Ceylon Crest and Katong Gardens transacted recently at about $540 to $550psf.
- East Galleria and Bellezza @ Katong went for about $650psf.
- 37-unit St Patrick’s Loft - marketed late last year at over $600psf.
- 121-unit Grand Duchess sold at $740psf. Tierra Vue sells at $800psf.
- Even prices of HDB 5R hit $467,000 and a 4R may costs about $305,000.

New Projects include:
- Wheelock Properties’ 546-unit The Sea View
- MCL Land’s 400-unit The Esta
- UIC and UOL's 562-unit One Amber
- Ho Bee’s 42-unit Vertis
- Voda Land's 114-unit Amber Residences
- FEO's redevelopment sites at Amberville and Rose Garden

That's all folks, for the time being - Danny 'Bingo'

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