Singapore - Housing 01 (May 08 - Oct 08)

[fclim]

dear gurus,

this one good or not? can consider? but only 99 yrs... hmm...

have fun,
fc
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Source: http://www.channelnewsasia.com/stories/ ... 71/1/.html

Hong Fok launches 360-unit residential property at Concourse
By Ng Baoying, Channel NewsAsia | Posted: 09 September 2008 2004 hrs

SINGAPORE: The 88 serviced apartments at the Concourse will be redeveloped into a 360-unit residential property. Developer Hong Fok Corporation said the 99-year leasehold units will be "priced to sell" in today's softer property market.

Ninety units of Concourse Skyline will be launched over the next few days in Singapore and Hong Kong. They will be sold at a price of between S$1,580 and S$1,800 psf – about S$1.3 million for a single bedroom unit.

Joseph Tan, executive director, Residential, CB Richard Ellis, said: "This year, in terms of a broad range of transactions, we still see transactions between S$1,500 and S$3,300 psf. So in a sense, we are a bit below that. That's why it's priced to sell."

Hong Fok said while the current serviced residences saw occupancy rates hover around 90 per cent, those units only used up about 60 per cent of the total space available. The remaining 40 per cent was wasted on corridor space.

The developer will tear down the current two towers and rebuild them with the same facade at an estimated S$200 million.

Hong Fok said construction costs are expected to soften by the time building works start in early 2009 and the development will be ready for accommodation by end-2012.

Concourse Skyline will offer a view of the Marina Bay Sand integrated resort and the Singapore Sports Hub.

Units at the 40-storey and 28-storey towers will be designed by top architect Philip Cox, and will include one- to four-bedroom apartments, sky suites, penthouses and super penthouses.

Hong Fok is positive on market sentiment and said it has already received enquiries on about 25 units.

Cheong Sim Eng, executive director, Hong Fok Corporation, said: "With the buyers on hand, we wouldn't want to wait. We have planned this more than two and a half years ago. With the F1 coming, we don't need to wait for a better time to launch."

Analysts from DTZ and CB Richard Ellis noted that three multi-billion-dollar projects – the Kallang Riverside, the Ophir-Rochor Corridor and Marina Bay – surround Concourse Skyline, putting it in good stead for capital appreciation and future rental potential.


- CNA/so

[iam802]

S$1,580 and S$1,800 psf – about S$1.3 million for a single bedroom unit.

a bit pricey even though it is in the city.

[kennynah]

802 : do u know what's the psf pricing of that condo smack right at orchard road? the one behind NgeeAn City/Wisma Atria? i am just curious... thanks.

[ishak]

Choice Tanah Merah condo site receives seven bids
BT, 10 Sep 2008

DESPITE the quieter property market and a weak response at some state land sales, a 99-year leasehold condo site next to Tanah Merah MRT station yesterday drew seven bids.

The top bid of $84 million or $282 per sq ft per plot ratio (psf ppr) came from TID - a joint venture between Singapore's Hong Leong Group and Japan's Mitsui Fudosan.

The top bid was within the $250-300 psf ppr range predicted for the plot when it was launched by the Urban Redevelopment Authority in mid-July.

But it is 11 per cent shy of the $318.50 achieved for a neighbouring site - farther from the MRT station - in April 2006, when sentiment was more buoyant. That site is now being developed as the Casa Merah condo.

Commenting on the response at yesterday's tender, an observer said: 'The market is not dead. If a prime site comes along there will be takers, especially at state land tenders.'

Agreeing, DTZ senior director (research) Chua Chor Hoon said: 'I'm not surprised with the outcome of the tender. After all, it was for a mass-market site in an attractive location where there has always been good demand for condos.' TID's bid was 12 per cent above the next highest offer by Sim Lian Land of $75 million or nearly $252 psf ppr. The other bidders were:

Midview group unit Boon Keng Development ($61.88 million); BS Capital subsidiary Bishopsgate Developments ($61.33 million); Frasers Centrepoint unit FCL Emerald (3), which bid $53.58 million; Hoi Hup Realty ($48.51 million); and GuocoLand subsidiary First Changi Development ($44.63 million)

CB Richard Ellis director Leonard Tay estimates that based on TID's bid price, the breakeven cost for a new condo is likely to be $700-750 psf, translating to possible sale prices ranging from $800-850 psf.

'This takes into account recent comparables, the current market, much higher construction costs and the new planning guidelines on bay windows and planter boxes,' he said.

'Waterfront Waves, a new condo at Bedok Reservoir, is currently being marketed at $800 psf on average. A sub-sale unit at Casa Merah, was sold at $783 psf in August, while in the resale market, older units in East Meadows were transacted at an average of $660 psf in the first half of 2008.'

The 106,299 sq ft plot on offer at yesterday's tender has a 2.8 plot ratio - ratio of maximum potential gross floor area to land area - and can be developed into a condo with 240-250 units averaging 1,200 sq ft.

CBRE's Mr Tay said the future project on the site will be attractive to HDB upgraders living in Bedok, Tampines and Marine Parade and private homeowners in the East Coast area.

'It will also be attractive to expats looking to rent homes along major transport nodes,' he added.

[ishak]

HDB upgraders come out to play in quiet market
Their share of private home purchases rises, that of foreigners falls
BT, 10 Sep 2008

When the property market is hot, foreign buyers are in action. When it quietens, HDB upgraders take the spotlight.

HDB upgraders' share of private home purchases rose to 34 per cent in Q2 2008 from just 28 per cent share in Q1 2008. This is the highest quarterly figure in at least three years, according to DTZ's analysis of caveats captured by Urban Redevelopment Authority's Realis system.

The number of private homes bought by those with HDB addresses also increased 35 per cent quarter-on-quarter to 1,199, outpacing a 3 per cent increase over the same period in the number of private homes picked up by those with private addresses.

In absolute terms in Q2, HDB upgraders picked up the most number of units in The Verve in the Balestier area - 36 - followed by 32 at Stadia at Yio Chu Kang Road in the primary market (from developers). Proportionately, The Quartz was the most popular with 86 per cent of its buyers being upgraders.

Developers are targeting this segment. 'Developers have been pricing launches at more realistic prices and some developers have arranged for banks to offer attractive mortgage schemes for buyers,' said DTZ executive director Ong Choon Fah.

Meanwhile, the buyers of 97 of the 169 primary market transactions of private apartments/condos below 1,000 sq ft and costing at most $1,000 psf in Q2 had HDB addresses. 'This could be partly due to singles who are staying with parents in HDB flats purchasing for either investment or owner-occupation,' DTZ said.

HDB upgraders have also been more active in Q2 in the secondary market, where prices have dropped by as much as 10-12 per cent in Q2 2008 over Q1 2008 in some instances, Mrs Ong said.

The number of private apartments/condos changing hands in the subsale market bought by those with HDB addresses increased 52 per cent Q-on-Q to 152 deals in Q2 2008.

'HDB upgraders can more easily upgrade to private properties as HDB resale flat prices are still rising, while prices for some private properties have fallen,' DTZ said.

The median price for private apartments/condos picked up by HDB upgraders in the subsale market declined 8 per cent Q-on-Q to $871 psf in Q2 this year.

Subsales - often seen as a reflection of speculative activity - refer to secondary market deals in projects that have yet to receive their Certificates of Statutory Completion.

The total number of subsales for non-landed private homes rose 25 per cent quarter-on-quarter to 493 in Q2 2008. They made up about 17 per cent share of transactions of non-landed private homes in Q2.

'This is high considering that there's very little speculation now compared with last year. Rather, the subsale activity in Q2 seems to have been fuelled by those who'd bought units in the past few years unloading their investments as their units reach or near completion,' DTZ said.

The median subsale price (of non-landed private homes) continued to fall by 5 per cent quarter-on-quarter to $1,052 psf in Q2 after sliding 8 per cent in Q1 and 4 per cent in Q4 2007. 'This was due to fewer high-end units being transacted in the subsale market as well as slight price corrections. Owners are now more realistic in asking prices,' DTZ said.

Median subsale prices of Citylights and The Sail @ Marina Bay were $1,100 psf and $1,810 psf respectively in Q2 2008, down about 2 and 14 per cent respectively from Q1.

Meanwhile, the number of private homes acquired by foreigners (including permanent residents) rose 3 per cent Q-on-Q to 913 in Q2. Foreigners bought 26 per cent of total private homes in the quarter, down slightly from a 28 per cent share in Q1.

DTZ senior director Chua Chor Hoon observed that 'when private property prices are high, there are more foreigners as they are attracted by the growth story. When private property prices are low, there are more purchasers with HDB addresses as it's a good opportunity to upgrade at more affordable levels.

'The price gap between HDB resale flats and private properties is also narrower, so the outlay is smaller for HDB upgraders who can use the sale proceeds from their HDB flats to pay off part of the private property purchase price.'

[iam802]

802 : do u know what's the psf pricing of that condo smack right at orchard road? the one behind NgeeAn City/Wisma Atria? i am just curious... thanks.

I am not familiar with the condo there.

However, I recall that for Richmond Park (near Paragon and Mt E Hospital), one of the transaction this year is about $2,300psf. This figure is from URA.

[kennynah]

thanks 802

[LenaHuat]

MM - Wow, no icebreaker can cut that 'berg'

Dol * OE2008 - Potential property buyers should sit up and take note of their posts.

Kenny - I think that building is a serviced apartment.

Now, this is the fascinating bit abt this Tanah Merah site :

DESPITE the quieter property market and a weak response at some state land sales, a 99-year leasehold condo site next to Tanah Merah MRT station yesterday drew seven bids.

The top bid of $84 million or $282 per sq ft per plot ratio (psf ppr) came from TID - a joint venture between Singapore's Hong Leong Group and Japan's Mitsui Fudosan.

Read abt Mitsui Fudosan's muscles here:
http://www.asiaone.com/Business/Story/A1Story20080527-67234.html
Given both HL and MF's reputation, I think there is something positive brewing in their plans.

[-dol-]

Lehman Brothers intend to sell a majority stake in its investment management unit (Neuberger Berman - its crown jewels) and sell real estate assets to shore up capital after posting a much bigger than expected third-quarter loss.

LEH has suffered big writedowns in real estate assets. They plan to spin off $25 billion to $30 billion of troubled commercial real estate assets — nearly all its portfolio — into a new firm called Real Estate Investments Global in early 2009.

LEH's real estate funds were quite active in Singapore the past few years. I recalled that they were partnering some of the smaller developers in some deals here. Their involvement should be drying up now. Foreign real estate funds are a significant factor in driving up local prices - often buying up whole floors or buildings of both residential and commercial properties. They claimed to be long-term investors but were also flipping properties within months of purchase.

[ishak]

More PRs snapping up private homes
Their share in pool of foreign buyers is rising after turmoil in global markets
BT, 11 Sep 2008

THE proportion of permanent residents (PRs) in the pool of foreign buyers of private homes here has been rising since the third quarter of 2007, when the US sub-prime crisis struck, according to DTZ's analysis of caveats data from Urban Redevelopment Authority's Realis system.

Correspondingly, non-PR foreigners have seen their share of this pool decline from 54 per cent in Q3 2007 to 46 per cent in Q2 this year.

One explanation could be that PRs are more likely to buy Singapore homes for their own occupation whereas non-PR foreigners may be more inclined to buy for investment and would hence tend to become increasingly cautious amidst the volatile global financial markets.

DTZ senior director (research) Chua Chor Hoon expects the trend to continue in the coming months given the global economic uncertainty.

The property consultancy's analysis showed that PRs made up 54 per cent of the total number of 913 private-home purchases by foreigners in Q2 this year captured by Realis as at early August. This was up from a 51 per cent share in Q1, which in turn was higher than 47 per cent and 46 per cent shares in the fourth and third quarters of last year respectively.

Foreigners (including PRs) bought a total 913 private homes here in Q2 2008, up 3 per cent from the preceding quarter. Malaysians overtook Indonesians as the top foreign buyers of private homes in Singapore in the second quarter.

Malaysians accounted for 19 per cent (172 transactions) of the overall purchases by foreigners (including PRs), followed by a 17 per cent share for Indonesians. China and India citizens each accounted for 11 per cent of foreign buyers while UK buyers had a 9 per cent share.

Projects which received more foreign interest in Q2 include The Lakeshore in Jurong, Vutton at Akyab Road and Nassim Park Residences. Foreigners (including PRs) made up 44 per cent of the 55 units sold at The Lakeshore, and about two-thirds of the 11 units sold at Scotts Square and nine units sold at Martin Place Residences.

'The Indonesians favour prime districts 9 and 10. District 15 is popular with all the five major nationalities because it offers sea views, easy access to the airport and city, and is a popular residential area even with the locals with its attractive amenities.

'The Chinese, Malaysians and Brits also buy into the west. This could be due to the proximity to the Science Park, industrial estates and National University of Singapore,' Ms Chua said.