Jones Lang LaSalle says S’pore’s prime property market to ease further

Posted on July 17, 2008 by luxuryasiahome

Rents in Singapore’s prime residential sector are expected to ease further. According to consultants Jones Lang LaSalle, it’s expecting to see a 4.5 per cent contraction for the whole year. It has already weakened by two per cent year to date.

In its mid-year review on the Singapore property market, Jones Lang LaSalle also notes an easing in the resale prices of luxury projects in the prime districts.

But it said that mass market homes saw healthy growth of some three per cent.

High rentals are forcing expatriates on lower housing budgets to move out of the prime market in Singapore and this is behind softening rents this year. This is expected to persist into 2009 when more units will likely entering the market.

An anticipated 15,000 units are expected to be completed by the end of 2009. This compares to an average take up of 6,800 units per annum.

According to Jones Lang LaSalle, what may help prop up rentals is demand.

It notes that companies in Singapore are still expanding, going by the take-up in office space.

Christopher Fossick, Managing Director, Singapore & Southeast Asia, Jones Lang LaSelle, said: “There is still an influx of people coming here to work and there is a strong expatriate demand in all business sectors.”

Meanwhile, in the resale market, the average prices of units in the prime districts eased by some 4.9 per cent in the first half this year.

However, this may change.

Collective sales have been a key source of land for new projects in the prime areas and with these drying up, home prices may be pushed upwards.

Mr Fossick continued: “There’s been almost no residential collective sales this year. Volume has gone down 97 per cent by our records in the first half versus the first half in 2007. In 12 to 24 months’ time, we’re going to see that impacting the market. There’s also far less supply from luxury collective sales sources.”

Over in the mass market, prices have been holding up, climbing by some three per cent in the first half of 2008, due to demand from dislodged collective sale owners and those upgrading from government flats. -CNA/vm

Source : Channel NewsAsia – 17 Jul 2008

Mass market and mid-tier private apartments expected to do well this year

Posted on March 22, 2008 by luxuryasiahome

Prices of mass market and mid-tier condominiums are expected to remain strong this year.

But those of high-end residential properties could taper off by up to 10 per cent.

And if you’re looking to buy, the market is in your favour, according to Propnex’s CEO, Mohamed Ismail Abdul Gafoore, in a speech to alumni members at the National University of Singapore.

Despite the weaker market sentiments, industry players expect mass market condominiums to do relatively well this year and prices are set to climb but at a more sluggish pace.

And more supply will come into the market as 31,000 new private apartments are completed over the next five years.

Propnex said it’s now a buyers market and home hunters could get good deals.

Mr Mohammad Ismail said: “When we compare the prices of places like Parc Oasis or Woodsgrove condo, the prices today hold and in some instances are even higher per square foot.

“Look at today, the public housing pricing, and the DBSS pricing per square foot. They are already going at almost S$600 if one would want to buy at a mass market price that is less than S$800 with full facilities.”

According to agents, the landed housing space could see modest growth but prices should hold steady.

The outlook is less positive for luxury apartments, which only six months ago were transacted upwards of S$2000 per square foot.

Property agents expect the dust kicked up by the US sub-prime crisis and the rising oil prices to settle by 2009.

They are also confident that the future is still bright for the property market as Singapore has the right fundamentals in place.

Meanwhile, demand for public housing is expected to remain robust this year, providing to prices.

So some agents believe it’s a good time for HDB flat owners to trade up to a mass market private property.

Source : Channel NewsAsia – 21 Mar 2008

Mass market property sales started recovering a year ago: CBRE

Posted on September 28, 2007 by luxuryasiahome

The recovery in mass market property sales in Singapore started as far back as a year ago.

According to consultant CB Richard Ellis, this debunks the notion that the recovery for mass market projects has trailed the high-end market until the last few months.

But, even with sales rising for some 12 months, CBRE’s research has found that prices only started edging up in the last six months.

The study is based on an analysis of the new units launched last year and the corresponding take-up volumes

It found that 68 per cent of the new projects launched in the West Coast last year had actually been taken up.

Likewise, take-up rates for districts 15 and 16 were about 90 per cent.

Home buyers bought about 74 percent of projects in the prime districts of 9 and 10, and 96 per cent for the Downtown area and Sentosa Cove.

CBRE says the strong sales of non-prime projects suggest that upgraders and private homeowners had bought properties, in anticipation of a rise in prices. – CNA/ch

Source : Channel NewsAsia – 28 Sep 2007

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Prices of entry-level, mid-tier homes set to go up further

Posted on September 18, 2007 by luxuryasiahome

Despite signs that sentiment has been weighed down by global credit woes, property consultants are still keeping to a bullish outlook for the Singapore property market.

They are expecting to see further upside in prices of as much as 50 percent over the next 6 to 18 months.

This is despite the industry taking a slight breather and a general cautionary mood among investors due to the US sub-prime mortgage crisis.

Demand in the mid-tier and mass-market segment is seen as coming from those who need replacement units.

Nicholas Mak, director of Consultancy and Research, Knight Frank, said: “Some of the people whose project has gone en bloc successfully will be looking for replacement properties and as prices in the high-end market have skyrocketed, they will perhaps buy properties that are in the mid-tier or in the mass market.”

Those investing in entry-level and mid-tier condominiums are mainly Singaporeans and permanent residents.

Prices for mid-tier condos have, so far this year, climbed some 15 percent – while those for entry-level properties have jumped by 12 percent.

A new development targeted at heartlanders has just been launched at Ang Mo Kio.

And consultants said they expect the units to be sold for S$1,100 to S$1,200 per square foot.

“Although it is in the HDB heartland, it’s in a very good location – very close proximity to the Ang Mo Kio MRT station and the Ang Mo Kio hub which has a major retail mall,” said Mr Mak.

Data out from the Urban Redevelopment Authority (URA) on Monday showed that almost 1,900 new residential units were launched last month.

The total number of new units for the whole of the third quarter is expected to be around 4,000.

Source : Channel NewsAsia – 18 Sept 2007

Casa Merah

Posted on February 22, 2007 by luxuryasiahome

Amidst a private residential enclave lies a mesmerising blend of contemporary sensibility with the essence of tranquility – Casa Merah. With 556 distinctive units in twelve 11/12-storey blocks, the clean lines of its façade harmonise with splendid bodies of water. Residents will savour panoramic vistas and enjoy unique water landscapes at their doorsteps. Conveniently located right next to the Tanah Merah MRT station, this luxurious residential development is also within easy reach of the Bedok town centre and market place, East Coast Park, Tampines Mall and Parkway Parade. It is also located near good schools and institutions such as St. Anthony’s Canossian Primary and Secondary School, Anglican High School and Temasek Junior College.

Casa Merah – Your oasis of calm

Location: Tanah Merah Kechil Ave (District 16)
Tenure: 99-years leasehold wef 11 July 2006
Expected Completion: 30 Sept 2010
Site Area: 21,876 sq m (235,473 sq ft)
Total Units: 556 (12 Towers of 11/12-storeys each)
Unit Types:
2 bedrooms ~ 926sqft to 1,076sqft
3 bedrooms ~ 1,216sqft to 1,475sqft
3 + study ~ 1,335sqft to 1,970sqft
4 bedrooms ~ 1,528sqft to 2,196sqft

Casa Merah / Name / Contact # / Unit Type Interested

The masses are stepping right up

Posted on January 12, 2007 by luxuryasiahome

WITH the buying frenzy for high-end apartments still fresh in memory, property developers now seem ready to cash in on the hype, with two of them poised to test the waters of mass market condominiums.

This weekend, NTUC Choice Homes is set to preview YewTee Residences, while Frasers Centrepoint Homes is officially unveiling the ClementiWoods Condominium.

Both these 99-year leasehold developments will cater to the mass market, with prices averaging $498 per square foot (psf) for YewTee Residences and $525 psf for ClementiWoods Condominium.

YewTee Residences is targeted at families who are looking to upgrade to a private development. The 139 units on offer comprise two-bedroom, three-bedroom and four-bedroom apartments that range between 840 square feet and 1,400 sqft.

Located beside Yew Tee MRT station, the development is also close to amenities such as markets and schools.

For its part, Frasers Centrepoint will officially launch the ClementiWoods Condominium tomorrow.

The 240-unit development is situated next to the Clementi Woods Park. Its offerings range from a one-bedroom 560 sqft apartment to a 3,197 sqft penthouse with five bedrooms.

The response to the project’s soft launch last week has been good, with around 123 units having been sold thus far.

Some might see such a reception as a sign of the mass market picking up steam.

“The recent run in the high-end segment will sooner or later filter down to the mid- and mass-market properties. And with (these responses), it might seem that it is about to start,” said Mr Donald Han, managing director of real-estate services firm Cushman & Wakefield Singapore.

Flash estimates that were released by the Urban Redevelopment Authority recently saw private home prices in the final quarter climbing 3.7 per cent to 130 points, rising from 125.4 points that was registered in the third quarter.

However, these figures do not reflect the overall market, since they were boosted by the sale of Marina Bay Residences in the latter part of the year.

Mr Han said developers could be testing the market in the wake of the sell-out sentiments recently exhibited by City Development Limited’s One Shenton.

“In a way, it could be the start of something. But it is too early to say for sure. The supply is out there, it is a question of whether there is demand,” said Mr Nicholas Mak, director of consultancy and research at property consultancy Knight Frank.

Some observers believe the healthy economy will ensure that the demand will be there.

“People are getting more secure jobs, a lot of investors and tourists are coming to the country. In that sense, the mid-level are people who would like to be able to have a different lifestyle from the homes they used to own,” Mr Cheang Kok Kheong, Frasers Centrepoint’s general manager for development and property, told Channel NewsAsia.

High-end property run filtering to mid-market, good response to recent launches WITH the buying frenzy for high-end apartments still fresh in memory, property developers now seem ready to cash in on the hype, with two of them poised to test the waters of mass market condominiums.