250 units of Lakeside project sold

KEPPEL Land sold about 250 units of The Lakefront Residences at the project's preview yesterday.
The units sold in the 99-year leasehold condo - next to Lakeside MRT Station and near Jurong Lake - were priced at about $1,020 psf on average - a new record for the location.
Next door, units at Caspian have been changing hands mostly at $700-800 psf in the subsale market since August .
Caspian - which was the first major property launch in Singapore after Lehman's collapse - was previewed in February last year by developer Frasers Centrepoint at the carefully researched average price of $580 psf; it sold like hot cakes, drawing out pent-up demand and sparking a revival in home sales.
This means prices in the location are now about 1.75 times what they were 21 months ago.
KepLand's The Lakefront Residences is a 629-unit development comprising three 18-storey blocks. Unit sizes range from 484 sq ft for a one-bedder to about 3,000 sq ft for a penthouse. The project includes 69 one-bedders, 158 two-bedders, 255 three-bedders and 98 three-bedroom-plus-study units. There are also 32 four-bedroom apartments and 17 penthouses.
Keppel Land said it sold a range of unit types yesterday.
Augustine Tan, president (Singapore residential) at KepLand, said: 'We have been receiving enquiries for The Lakefront Residences from Singaporean homebuyers/investors as well as permanent residents and foreigners from China and Malaysia.'
He credited the positive response to the project's choice location next to an MRT Station, unique lifestyle and recreational amenities in the upcoming Jurong Lake District as well as KepLand's expertise in developing waterfront homes.
The Jurong Lake District is planned as a commercial, leisure and residential hub by the Urban Redevelopment Authority. In addition, the project is close to the Canadian International School, which is slated to open next year.
While some analysts suggested the strong response for The Lakefront Residences could be a sign that the initial effects of the Aug 30 property cooling measures could be wearing off, others said it is erroneous to draw this conclusion as The Lakefront has two big pluses - a plum location next to an MRT Station and the exciting plans for Jurong. 'The sales result reinforces the thinking that projects next to MRT stations will always be more highly sought after,' said CB Richard Ellis executive director (residential) Joseph Tan.
Over in the Tanjong Pagar area, where UOL is marketing Spottiswoode Residences, about 70 cheques were said to have been received by agents ahead of the freehold condo's preview yesterday afternoon. UOL has so far released 100 units at $1,720-2,100 psf, and is expected to offer more units in the 351-unit project's main launch on Wednesday.
Another project that has just been previewed is World Class Land's Cavan Suites in the Lavender area. The freehold project has 36 apartments - located in conservation shophouses as well as a six-storey new extension at the rear. Units are small, ranging from about 452 to 549 sq ft and priced at about $1,300-$1,500 psf.


Source: Business Times © Singapore Press Holdings Ltd.

Number of property agents set to fall

FEWER property agents will be plying the trade from next year, but they will - hopefully - be better informed.
The property industry is bracing itself for a mass cull of estate agents as the industry's first ever regulator, the Council for Estate Agencies (CEA), begins operations tomorrow.
Agency bosses estimate that the current national 30,000-strong pool of agents will shrink by a third to about 20,000 overnight because of stricter standards laid down by the new council.
The new regulations mainly involve the strict enforcement of industry exams, and are aimed at ridding the industry of errant, sub-standard agents who have tarred its reputation.
Industry watchers expect the rising number of complaints in recent years to decline as the quality of agents rises.
Agencies are expected to submit a final list of names of agents who make the cut to the CEA by midnight tomorrow.
Registration with the council, which comes under the Ministry of National Development (MND), will become mandatory from Jan 1.
PropNex chief executive Mohamed Ismail said his firm's headcount will slide from 6,000 to about 4,000.
HSR chief executive Patrick Liew said his firm will lose about half of its 7,000 agents.
It is the same story islandwide: Dennis Wee Group director Chris Koh said its number of agents will fall from 5,000 to 3,000, while ERA Asia Pacific will lose almost half of its agents, falling from 8,000 to 4,200. At OrangeTee, the 3,600 agent pool will shrink to 2,500.
The CEA was set up after legislation to regulate property agents for the first time was passed in Parliament last month. It was a milestone for the real estate sector here.
For many years, consumers had lobbied for greater regulation of an industry dogged by a rising number of complaints against agents who were attracted by Singapore's periodic property booms.
Complaints against real estate firms and agents shot up almost 60 per cent in recent years: from 670 in 2005 to 1,070 last year, according to the Consumers Association of Singapore.
To make the cut, agents must have passed existing industry examinations. Those who have not must have brokered at least three deals in the past two years. The latter group are given more time to pass the exams.
Agents who fail to meet these criteria will be treated like new applicants who must take new courses and a stricter exam set by the CEA.
Dennis Wee's Mr Koh said the agencies had been prepared for the new regime 'for some time' as a result of frequent updates from the MND.
'The quantity of agents will go down, but at least the quality will go up, because for the first time, all agents have to pass an exam before being able to practise in the property market,' he said.
HSR's Mr Liew noted that smaller to mid-sized agencies would have to spend money to ensure their systems were up to scratch to meet CEA standards.
Further industry consolidation is also expected. Already, C&H Realty has merged with its sister company C&H Properties to reduce overhead costs.
'There will be less competition in the industry now, which will be a good thing as service standards should go up,' said C&H Realty managing director Albert Lu.
The existing Institute of Estate Agents (IEA) and Singapore Accredited Estate Agencies (SAEA) will still operate.
Mr Ismail, who is also the IEA president, said the institute, which has about 2,000 property agents as members, will apply to be an approved trainer to offer training for new recruits to property agencies.
SAEA chief executive Tan Tee Khoon said the body, with the Singapore Institute of Surveyors and Valuers, will continue its enhanced accreditation scheme, which will complement the Government's mandatory licensing scheme.
Property agents interviewed welcomed the regulation of the industry, saying that for too long, inexperienced agents or part-timers made promises they could not deliver, and tarnished the profession.
Property agent Jasmine Png, 29, said agents who are experienced will not be affected by the rules. 'The regulations will make sure only the professionals make the cut,' she added.
jcheam@sph.com.sg
esthert@sph.com.sg

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WHO WILL MAKE THE CUT?

PropNex: 4,000 of its 6,000 agents

HSR: 3,500 of its 7,000 agents

Dennis Wee: 3,000 of its 5,000 agents

ERA Asia Pacific: 4,200 of its 8,000 agents

OrangeTee: 2,500 of its 3,600 agents
Source: The Straits Times © Singapore Press Holdings Ltd

Secondary home sales shrink under big chill

(SINGAPORE) Secondary market transactions of private homes slowed down considerably in September over the preceding month following the property cooling measures announced on August 30.

The number of subsales fell about 52 per cent month on month in September, while resales of private homes eased 42 per cent over the same period, an analysis of URA Realis caveats data as of Oct 19 shows.

The sales volumes are expected to increase over the next few weeks as more caveats are lodged for September's transactions. Nevertheless, market watchers reckon the preliminary numbers shown in the analysis by Credo Real Estate is an indication of the slowdown of activity in the secondary market for private homes following the government measures.

Subsales and resales are secondary market transactions; subsales involve projects that have yet to receive Certificate of Statutory Completion (CSC), while resales refer to developments with CSC.

Last Friday, Urban Redevelopment Authority (URA) unveiled data showing that the number of private homes sold by developers fell about 28 per cent month on month to 911 units in September. However, analysts cautioned against comparing this rate of slowdown with declines for secondary market deals.

This is because URA primary market sales numbers are sourced from monthly surveys of developers, whereas data on the number of subsales and resales are collated from caveats lodged, and there's typically a lag of about 2-3 weeks or even more, between an option being granted and a caveat being lodged (the latter usually takes place upon exercise of option).

However, at least one seasoned property consultant was willing to say that the data is a 'good reflection' of what's happening in the market. DTZ executive director Ong Choon Fah said: 'Chances of successful sales in the secondary market these days are lower as people do not have that much control. It's not as organised, whereas in the primary market, a developer will first test the market to ensure there's a reasonable chance of good response before launching the project. It's a more managed process.'

Mrs Ong said another reason secondary market sellers were less successful than developers last month is that 'by and large, owners are trying to hold on to their prices, which is why we're seeing a standoff in the secondary market'.

'Whereas developers, if they want to launch, have to ensure there'll be sales activity. In recent weeks, we've seen them releasing new projects at the lower end of their original price expectations.'

Credo's caveats analysis showed that the number of caveats lodged for subsales of private homes slipped from 311 in August to 150 in September. The volume of resale caveats eased from 1,927 in August to 1,113 in September.

The last time the subsale figure was this low was in February 2009 (127 units) while the latest resale figure is close to the 1,009 transactions seen in April 2009, in the aftermath of the global financial crash.

Credo's executive director Ong Teck Hui also highlights that the 150-unit subsale volume for September is about half the 304-unit average for January to August this year, while the September resale figure of 1,113 units is down 37 per cent from the 1,767-unit average for Jan-Aug 2010.

The most expensive subsale of a landed home in September (in both absolute quantum and per square foot pricing) was a bungalow at Kasara - The Lake collection at Sentosa Cove, which sold at $16.75 million or $1,853 psf of land area of 9,042 sq ft. It was previously transacted for $14.428 million in December 2009, reflecting a profit of about 16 per cent.

In the non-landed housing segment, the priciest subsale in September based on psf of strata area was a 46th level unit at Marina Bay Residences which sold for about $7.4 million or $3,790 psf, after being previously purchased for about $5 million in January 2007. That works out to a 48 per cent gain over a period of three years and eight months.

In absolute price quantum, the most expensive non-landed subsale last month was a 3,251 sq ft unit at Parkview Eclat at Grange Road which fetched $9.95 million ($3,061 psf of strata area). This was 15 per cent below the $11.7 million at which the unit was previously transacted in August 2007.

Among resale deals, the priciest condo last month in absolute price was $14.24 million, for a 6,060 sq ft unit at St Regis Residences. In psf terms, the most expensive condo was a 2,885-sq ft apartment on the 23rd floor of Ardmore Park, which fetched $3,467 psf.

For landed homes, the most expensive resale deal in September was a good class bungalow at Jervois Road, which sold for nearly $27.2 million ($1,293 psf of land area). On a psf basis, the priciest resale was a bungalow at Lakeshore View at Sentosa Cove which fetched $1,899 psf (or $14 million in total).

Property consultants expect private home sales to remain slow for the rest of the year in both primary and secondary markets, due to the seasonal year-end slowdown. 'The market will take time to consolidate and adjust to the new policies,' says CB Richard Ellis executive director Li Hiaw Ho.

DTZ's Mrs Ong says: 'There has to be a marked and prolonged slowdown in activity before sellers reprice their units. Prices are always more sticky going down.'

Source: Business Times © Singapore Press Holdings Ltd.
Business Times: Thu, Oct 21