Property Market Updates (22 Nov 2010)

New high of $2,515 psf at Icon

Prices at the 646-unit Icon on Gopeng Street reached a new high of $2,515 psf on Oct 15, when a 1,119 sq ft penthouse on the 46th floor was sold for $2.8 million. This breaks the previous record of $2,457 psf in November 2007, when another similar-sized unit on the same floor went for $2.75 million. The new high set at the four-year-old, 46-storey condominium was for a prime unit sold by developer Far East Organization (FEO). FEO sold two other 1,119 sq ft units last month, on the 45th floor, for $2.49 million ($2,224 psf) and $2.42 million ($2,168 psf). Meanwhile, lower-floor units are also seeing a surge in prices, increasingly crossing $1,700 psf. Kelvin Lau, an agent with Propnex, says he sold a few one- and two-bedroom units last month at $1,600 to $1,800 psf, adding that most sellers are now asking for $1,800 psf and above. At the 62-storey, 280-unit Altez, also by FEO and located on Enggor Street adjacent to Icon, an 861 sq ft unit on the 38th floor most recently went for $2.2 million ($2,605 psf) in August. Altez is expected to be completed in 2015. Meanwhile, at the newly completed 168-unit Lumiere by BS Capital along Mistri Road, adjacent to Anson Centre, a 505 sq ft unit on the 20th floor sold for $930,000 ($1,838 psf) on Oct 25. Lau adds that Icon is popular with local and overseas investors, as the project comprises mostly small units and enjoys a high rental yield. According to him, owners are asking for $4,000 a month and above for a one-bedroom unit. The 99-year leasehold condo was, in fact, the first inner-city residential project to be launched in the heart of the CBD six years ago, and units are highly sought after owing to its proximity to offices in the Tanjong Pagar district and the short walking distance to the Tanjong Pagar MRT station. Restaurants, pubs and supermarkets are also within walking distance, while there are cafés, restaurants and shops at Icon Village. Interest could also grow thanks to the redevelopment of plots in the Malaysian railway station and the port area into a new waterfront district and a desirable work-live-play neighbourhood. It is evident that owners at the Icon enjoy good rental demand and capital gains as the neighbourhood is revitalised.

- The Edge


Not yet sold out

Many high-end condominium units are sitting unsold even after completion, as the luxury home market remains quieter than in previous years. 12 developments have been completed this year, each with more than 10 units unsold as of last month, according to new data released by CB Richard Ellis (CBRE). Of these, 10 are in prime areas, with a total of 384 unsold units. Wing Tai's Belle Vue Residences in Oxley Walk, which obtained its TOP in the second quarter, has not found buyers for 61 of its 176 units as of last month. Paterson Suites, which had its TOP in the third quarter, has 79 units out of 102 yet to be taken up. Another eight projects are expected to receive TOP soon, each with at least 10 unsold units, added CBRE. Seven of these are also in prime locations: Districts 9, 10 and 11 - which cover Orchard, Holland, Newton and Bukit Timah - and the Sentosa and Tanjong Pagar areas. In all, buyers are still needed for more than 1,000 posh homes in projects already completed or expected to be ready by early next year. Experts say that some developers have yet to launch their remaining units as prices are still below their previous peak. Colliers International's director of research and advisory Tay Huey Ying said that luxury home prices are now just 5.4% shy of their peak in 2007. While volumes are still thin, prices are gradually creeping up, she added. Some luxury home buyers are also keen to 'feel and touch' their homes and the quality of the finishes before making such pricey purchases. This might give completed projects at least some kind of an edge over new launches.

- The Straits Times, B20


Citi's co-CEO for Asia-Pac moving here

CITI'S co-chief executive for Asia-Pacific, Mr Shirish Apte, will be relocating to Singapore from Hong Kong. This is a move that underlines Citi's commitment to Singapore and signals the country's importance as a financial hub, the bank said. Mr Apte has direct responsibility for South Asia, including Australia, India and the Asean countries. Mr Apte's move is a coup for Singapore because this essentially affirms that the Asia-Pacific region will be jointly managed by Citi from Singapore and Hong Kong. The other foreign bank that arguably houses top senior talent in Singapore is Standard Chartered Bank (Stanchart). Out of its five group executive directors, one is based in Singapore. Many of its wholesale banking global heads are based in Singapore as well.

- The Straits Times, B18
- Also quoted in The Business Time, P3, “Citi stations Asia-Pac CEO Apte in S'pore”.


Exchange Rates (extracted from xe.com)

1.00 SGD = 0.77 USD
1.00 SGD = 5.12 CNY
1.00 SGD = 2.40 MYR
1.00 SGD = 0.48 GBP
1.00 SGD = 868.49 KRW
1.00 SGD = 35.06 INR
1.00 SGD = 6,894.09 IDR

ST Index change: 3,195.59 (-1.78) *As at Mon 22 Nov 2010 09:18 AM
SIBOR (3 mths): 0.43751 (S$)
SWAP (3 mths): 0.26388 (S$)