Market Updates (23 Aug 2011)

Market Updates (23 Aug 2011)

 

Some property sites pack them in, some leave more breathing space

Five projects on sites sold under the 2006-2010 state land sales programmes will yield at least 50 % more units than the state's estimates for these sites indicated in the respective Government Land Sale (GLS) Programmes, shows a study by Savills Singapore.At the other end of the spectrum, there are sites whose developers are building fewer units than the numbers indicated in the GLS Programme, including two projects from Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings - The Vision in the West Coast area and Thomson Grand at Upper Thomson Road.

Two Far East Organization projects will also yield fewer units than the estimate in the GLS Programme - Mi Casa condo at Choa Chu Kang Drive and the recently released Boathouse Residences at Upper Serangoon View. The latter is a joint venture with Frasers Centrepoint and Sekisui House. Far East has stronger representation in the list of projects that will yield more units than estimated in the GLS Programme - with projects such as The Tennery in Bukit Panjang, The Greenwich in Seletar, Woodhaven in Woodlands and euHabitat at Jalan Eunos. All four projects have substantial proportion of total units between 500 sq ft and 800 sq ft, in some cases in what is dubbed SoHo-style one-bedders. In June and July this year, the property giant unveiled two condo projects, Woodhaven and euHabitat, which not only have SoHo-style apartments and normal condo units but also incorporated strata townhouses. 'These different housing options . . . cater to the varying needs of home buyers,' Mr Chia said. Market watchers note that foreigners (including Singapore permanent residents) may purchase strata landed homes within developments with condominium status without seeking approval from the Land Dealings (Approval) Unit. Said Mr Chia: 'Our townhouses at Woodhaven and euHabitat have seen demand from both Singapore permanent residents and foreigners.'

- The Business Times, P4

West Coast development put up for collective sale

Hong Leong Garden Shopping Centre, a 138-unit development at West Coast Way, has been put up for collective sale. Marketing agent Credo Real Estate said the development, located next to the Hundred Trees condominium, currently comprises 72 apartments and 66 shop units built in the 1980s by the Hong Leong Group.

The 956-year leasehold site has an area of 150,816 square feet. Under the 2008 Master Plan, the site is zoned 'Residential with Commercial at 1st Storey' with a gross plot ratio of 1.6, and an allowable height of up to 12 storeys. Credo said in its press statement yesterday that the Singapore Land Authority (SLA) has also granted in-principle approval for the amalgamation of the adjoining state land parcel of about 13,482 sq ft.This means that the sale site can potentially be enlarged to 164,298 sq ft with total gross floor area at about 262,877 sq ft. The sellers are expecting offers of between $160 million and $170 million, or about $752 to $794 psf per plot ratio, after factoring in the estimated land premium for the state land parcel and a development charge. Tan Hong Boon, Credo's deputy managing director, said: 'The appeal of the subject site lies in the flexibility of the commercial and residential mix in the new development. 'Depending on the creativity of the developer and subject to approval from the authorities, the site may be transformed into a condominium development with a trendy self-contained hub that offers an array of amenities and dining options to the residents in the development as well as to the resident catchment in the neighbouring housing estates.' The tender closes at 2.30pm on Sept 19.

- The Business Times, P30

- Also quoted in Straits Times, B23

More units cranked out as home sizes shrink

A study by Savills Singapore has put some hard numbers to the big lure of small apartments. Developers have been squeezing out more units on sites bought at state land tenders in recent years than was initially estimated.  Savills' study shows that the supply from projects on each of eight sites exceed the supply estimate in the GLS Programme by more than 40 %. Savills found that a substantial portion of units in these developments are below 800 sq ft, and in some cases, even under 500 sq ft.

DTZ South-east Asia chief operating officer Ong Choon Fah observed that over the past 15-20 years, the typical size of a three-bedroom apartment has shrunk from about 1,600 sq ft to 1,200 sq ft, with compact three bedders at 1,000-1,100 sq ft. 'This trend has been driven by the increase in land prices and pressure to keep lumpsum home prices affordable, as well as population increase, smaller family sizes, advent of small home appliances - even vacuum cleaners are smaller these days - and changes in lifestyle patterns with the Gen Y wanting their own place,' said Mrs Ong.

- The Business Times, P1

Luxury homes go off the boil across region

The heat is going out of the luxury home market here and across the region, hit by factors from tighter mortgage lending to higher interest rates. The slowdown is affecting markets to different degrees but the trend shows prices softening across the region, with even red-hot Hong Kong coming off the boil. Prices in Singapore declined 1.7 % in the three months to June from the quarter before, according to a report from property consultancy firm CB Richard Ellis (CBRE) yesterday. Rents of upscale homes also dipped 1.9% in the same period. Competition from new buildings in non-prime locations was one factor for the price slide, the firm said. It added that prices for posh homes are falling slowly, although other property segments are likely to remain stable.

-  The  Straits Times,  B24

-  Also quoted in The Business Times , P30, “ Price rise of Asian luxury homes easing ”

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