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$)
Friday, November 26
Friday, November 19
Property Market Updates (16 Nov 2010)
After blip, property is hot again
After Sept's slump came Oct's rebound. This turnaround, reflected in the latest developer sales figures revealed yesterday, has prompted some industry observers to say that another round of demand-cooling measures may follow, as those announced on Aug 30 do not seem to have had a strong or lasting impact. Developers sold 1,058 private homes excluding (EC) units in Oct, up 16.1% from Sept's sales volume of 911 units, according to primary-market sales data released by the URA yesterday. In addition, developers sold 529 ECs in Oct (no ECs were sold in Sept), taking total developer sales (including ECs) for Oct to 1,587 units. The number of private homes sold in the $2,000 to $2,500 psf price band in Oct was 207 units, or about eight times the 26 units developers sold in Sept. The increase was partly due to the release of The Glyndebourne (along Dunearn Road) and Suites at Orchard (at Handy Road). Excluding ECs, developers had sold 1,259 units in Aug before the cooling measures pushed this number down to 911 in Sept. It climbed back to 1,058 in Oct.
- The Business Times, P1
- Also quoted in The Straits Times, B26: “October private home sales beat forecast.”
Serene House and Serene Centre up for sale
Serene House and Serene Centre, both off Bukit Timah Road, have been put up for sale through property firm Colliers International. Colliers said yesterday that Serene House, a freehold residential site, will be offered via tender with an indicative price of $95 million to $98 million, or about $1,500 psf ppr. This assumes that no development charge is payable and includes the alienation of a neighbouring government-owned site. Serene House is a four- storey walk-up residential block comprising 24 apartments. The land area is 39,828 sq ft. Under the 2008 Master Plan, the rectangular site is zoned for residential use and has a gross plot ratio of 1.4.Colliers said the successful buyer can increase the total land area to 49,020 sq ft by amalgamating the neighbouring state land of 9,192 sq ft. The combined site can accommodate a new residential development comprising a four-storey block with 80 units of 850 sq ft each. The tender for Serene House closes on Dec 14.
Serene Centre
Serene Centre, a commercial / residential development, is being put up for sale through expression of interest. The indicative price is $120 million to $130 million, which works out to $1,500 per sq ft per plot ratio, based on a proposed plot ratio of three. The four-storey development comprises shop units on the first and second storeys, and 10 apartments on the third and fourth storeys. Serene Centre is on a 32,225 sq ft corner land plot fronting Farrer and Bukit Timah roads. Under the 2008 Master Plan, the site is zoned for commercial / residential use. The buyer can either refurbish the property to enhance the lettable area or redevelop the site into a new commercial / residential development. Expressions of interest must be submitted by Dec 14.
- The Business Times, P33
- Also quoted in The Straits Times, B24: “Serene Centre up for collective sale.”
Fragrance Properties to buy S$28m site
Fragrance Properties, the property development unit of Fragrance Group, is acquiring a site at Upper Paya Lebar Road for S$28 million. Known as MK23 Lot 03331T, the site currently houses a block of old apartments. The freehold site is zoned for residential development. It has a total land area of 3,173.6 sqm and has a maximum gross plot ratio of 1.4. The land can yield a max GFA of 4.887.34 sqm, including an additional 10% balcony space. Pending approval, Fragrance Properties intends to develop a residential apartment building on the site.
- CNA
More reclaimed land for new industries on Jurong Island
More land is being reclaimed off Ayer Merbau on Jurong Island to accommodate new investors like soap and detergent makers at a new value-add petrochemicals corridor shaping up there, as well as other potential downstream parties, BT has learnt. Shell just last week said it was ramping production of high-purity ethylene oxide (HPEO) needed by investors at the new corridor there. And sources said that JTC Corporation is reclaiming about 18 hectares off Ayer Merbau, starting with some 7-8 ha in the south and another 5 ha in the north of the area. Ayer Merbau is where Shell's mono-ethylene glycol (MEG) plant - part of its new US$3 billion petrochemical complex - and it’s now wholly-owned Ethylene Glycols Singapore plant, is sited.
- The Business Times, P4
HDB launches Lakeside site for 580 DBSS flats
HDB is launching a public housing site at Lakeside for sale, which can potentially yield 580 flats. The 2.1 hectare plot comes under HDB's design, build and sell scheme (DBSS). It is at Yuan Ching Road, near open spaces such as Jurong Lake and the Jurong Country Club golf course, and education institutions such as Jurong Secondary School. The site is also near the upcoming Jurong Lake District, which the government is developing as a major regional centre. However, the plot is some distance away from an MRT station. Both the Lakeside and Boon Lay stations are several bus stops away. The land parcel has a maximum allowable gross floor area of 684,574 sq ft and carries a lease term of 103 years (including a four-year construction period). The tender will close on Jan 5. SLP International Property Consultants' research executive director Nicholas Mak believes that the top bid for the site could range from $133.5-147 million, translating to $195-215 psf ppr. There might be four to six bidders, most of whom would be contractors- cum-developers, he added.
- The Business Times, P32
Global business confidence is down, but S'pore is upbeat
Uncertainty over economic recovery continues to plague investment and business confidence, according to a third-quarter global economic conditions survey by the Association of Chartered Certified Accountants (ACCA). But Singapore, notably, remained optimistic and was the only major ACCA market to report accelerating gains in business confidence in the three months. The picture was a lot brighter in Singapore, with 72% of the 109 respondents here saying they believe the global economy is either recovering or about to. 51% said they are more confident about their organisations' prospects than they were three months earlier. ACCA noted that satisfaction with government policies since the beginning of the crisis is much higher in Singapore than in any other market.
- The Business Times, P4
Understanding property developers
Anyone gathering case studies of the management principle 'vertical integration' need look no further than Singapore's property development industry. Several small to mid-size developers here started out as construction or engineering firms, building homes or offices for other developers. With bigger margins to be made down the value chain, these firms later decided to go into property development themselves. Tee International is one such example. It began operations in the 1980s as an electrical and mechanical engineer. In 2007, it started to acquire properties for redevelopment into new homes, sometimes with joint venture partners. Tee International's projects include Thomson Duplex and Cantiz @ Rambai. It will be co-developing a condominium project at Cairnhill Circle with another partner. Teambuild Construction Pte Ltd is another example. It started out in 1992 handling small sub-contracting jobs for Housing and Development Board projects, and later moved on to doing full construction and upgrading works. Today, the firm is also a private property developer, with residential projects such as Casa Aerata, D'Casita and Blissville under its belt.
- The Business Times, P
Top banker joins Threadneedle
One of Asia's top bankers, Mr Raymundo Yu, is coming out of retirement to spearhead British-headquartered asset manager Threadneedle's bid to become a force in this part of the world. Mr Yu, former Merrill Lynch chairman for Asia-Pacific, told The Straits Times that the chance to build Threadneedle's Asian franchise, virtually from scratch, was extremely compelling. He aims to make it one of the leading providers of fund management services in Asia. 'I like to build,' says the 55-year old Singaporean banker, who retired in 2008 after 27 years with Merrill. 'If you follow my career, it's always restructure and build'. At least (for) this one I don't have to go through the pain of restructuring.' Threadneedle manages about US$102.1 billion (S$133 billion) in assets and is the international investment arm of United States- listed financial service firm Ameriprise Financial. He plans to more than double the firm's Asia headcount to more than 30 staff in the next year, with the majority of the hires to be based here. The rest will work in Taipei, Hong Kong and Tokyo. Mr Yu also wants to diversify the business beyond its mainly institutional customers, such as government entities, to include the 'mass affluent' space and wealthy families. To do this, he will rely on his network and make new senior appointments, mostly in marketing and distribution. He will also work closely with Asia's leading banks.
- The Straits Times, B25
India to enjoy decades of high growth: minister
(New Delhi) India's Finance Minister Pranab Mukherjee held out the prospect of decades of 'high growth' as he sought to woo investors to Asia's third-largest economy. 'In the short term, it is reasonable to expect that the economy will go back to the robust growth path of 9% average that it was on before the global crisis slowed it down,' Mr Mukherjee told the India Economic Summit in New Delhi on Sunday. 'We are in a position to sustain high economic growth in the coming decades.' India needs US$1 trillion of investment in infrastructure including roads and ports between 2012 and 2017, double the estimated spending in the previous five years, to narrow the gap with China, Prime Minister Manmohan Singh's government says. China's economy, which was about the same size as India's US$183 billion in 1980, has swelled to close to US$5 trillion, four times that of India, after it boosted public spending. Mr Singh wants to boost economic expansion to a 9% pace for at least three decades, which he says is needed to pull the 828 million people living on less than US$2 a day out of poverty. – Bloomberg
- The Business Times, P19
Sunshine 100 plans US$1b HK IPO in H1 2011
(Beijing/Hong Kong) Chinese property developer Sunshine 100 aims to launch an initial public offering (IPO) in HK in the first half of next year, after a delay from this year over policy uncertainties. In June, the Beijing- based developer said it aimed to list in HK this year, but its plans did not materialise with concern among developers about central government tightening measures to cool the property market. 'We must choose a good time to list, and we are not so desperate for money. We think the early half of next year should be a good time,' Sunshine 100 Real Estate Group vice-president Fan Xiaochong told Reuters Insider TV. Sunshine 100, which focuses on second- and third- tier cities in which there is relatively less speculation, said it had sufficient cash to buy land next year totalling about three million square metres.
- The Business Times, P32
China steps up ownership curbs for foreign homebuyers
(Shanghai) China ordered first-time foreign homebuyers to show proof they don't own other properties in the country as it steps up measures to curb gains in the real estate market, the housing ministry and currency regulator said. Foreigners will have to provide home ownership statements before their purchases, along with proof of at least a year's employment in China, the State Administration of Foreign exchange and the Ministry of Housing and Urban-Rural Development said. Overseas companies are only allowed to buy offices in cities where they are registered, it said.
- The Business Times, P33
Tasweek scopes out opportunities in region
(Dubai) Abu Dhabi-based Tasweek Real Estate Development and Marketing recently explored the property and financial markets of Malaysia and Singapore to assess business opportunities and local market trends. According to the adviser and solutions provider serving the Middle East real estate markets, the trip affirmed the sustainable growth of the property sectors of both Malaysia and Singapore. With regard to Malaysia, the firm said the Malaysian market has been experiencing a property upsurge particularly in its high-end residential segment due to the availability of cheap financing, new launches, favourable regulations, and enticing promotions. Tasweek chief executive Masood Al Awar said the Asian discussions and observations proved that cheap financing was vital to ensuring the availability and sustainability of property returns and opportunities. He observed that Singapore and Malaysia both had various channels to fund property, allowing their real estate sector to continue to be productive despite the global crisis. 'We intend to adopt elements of the financing strategies we have witnessed in both countries to secure even better business for our company in 2011,' said Mr Al Awar who met with Malaysian and Singaporean banks and finance houses involved in real estate to gain more insights on their financing schemes. The financing model employed by Tasweek aims to achieve a combination of timeliness and speed, cost, and quality, the company said in a statement. Its mortgage financing options are aimed at leveraging the United Arab Emirates' lucrative mortgage market which is currently valued at around 50 billion dirhams (S$17.6 billion). Tasweek's business activities include the purchase and sale of strategic assets, asset management, joint ventures, and strategic alliances as well as marketing consultancy. -- Bernama
- The Business Times, P32
Exchange Rates (extracted from xe.com)
1.00 SGD = 0.776 USD
1.00 SGD = 5.151 CNY
1.00 SGD = 2.401 MYR
1.00 SGD = 0.481 GBP
1.00 SGD = 862.342 KRW
1.00 SGD = 34.695 INR
1.00 SGD = 6,994.292 IDR
ST Index change: 3,243.96 (+7.16) *As at Tue 16 Nov 2010 09:22 AM
SIBOR (3 mths): 0.43890 (S$)
SWAP (3 mths): 0.27009 (S$)
Tuesday, November 16
Property Market Updates (15 Nov 2010)
Northern connector links towns to nature
Cycling enthusiasts at park connectors usually make their way round winding trails through nature reserves and forested areas, but the Northern Explorer Park Connector Network (PCN) will have them pedalling through urban landscapes as well. The 25km loop links not only 11 nature sites and parks such as Admiralty Park, Yishun Park and Lower Seletar Reservoir Park, but also heartland towns in the northern part of Singapore. At the launch of the northern network, Home Affairs and Law Minister K. Shanmugam noted that besides recreational uses, park connectors also helped facilitate inter-town commuting. The $19 million Northern Explorer PCN passes alongside six MRT stations and about half of the stretch runs along train viaducts. The connector also showcases Singapore's biodiversity. A wide variety of birds such as woodpeckers and kingfishers as well as different species of butterflies and dragonflies can be spotted along the way. The Northern Explorer is the third loop of park connectors developed by the National Parks Board (NParks) - coming after the Eastern Coastal PCN, which opened in 2007, and the Western Adventure PCN, which opened last year. Together, they make up 150km of cycling paths. NParks aims to complete 300km of an islandwide grid linking major parks, nature sites and housing estates by 2015. A fourth loop in the north-eastern part of Singapore is expected to be unveiled next year.
- The Straits Times, B4
80% of Lakefront Residences sold
Some 70 units of The Lakefront Residences were sold over the weekend, bringing its total sales since Friday's preview to 320 units. The 320 units were sold at an average price of $1,020 psf. The 99-year leasehold condo is next to Lakeside MRT station and near Jurong Lake, with unit sizes ranging 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 were also 32 four-bedroom apartments and 17 penthouses up for sale.
- The Business Times, P11
Getting burnt over high-end homes
However, 90% of sub-sale transactions still turned a profit. A Savills analysis of caveats captured by the URA’s Realis as at Oct 19 showed that 9 units bought in 2007 were sold in 2010 at a loss in the sub-sale market. But the bulk of homes bought from 2006 to 2009 - 78 out of 87 - were sold for a profit, the analysis found. The fact that all 9 losses were on units bought in 2007, and it may be due to the high prices the owners paid when the residential market reached its peak in 2007. In contrast, units bought in 2006, 2008 and 2009 were re-sold at a profit in 2010. As of now, the number of loss-making transactions remains very low. 90% of sub-sale transactions this year still made profits, ranging from $3,620 to $1.92 million. At the low point of the market in Q1 2009, only 67.5% of sub-sales of private apartments and condos yielded a profit. That proportion grew to 95.1% in Q1 2010.
- The Business Times, P1
Asia-Pacific free trade area set to expand
Asia-Pacific economies have taken a major step towards turning the entire region into a free trade area, with five more members seeking to join the Trans-Pacific Partnership (TPP). Now made up of Singapore, Brunei, Chile and New Zealand, the TPP is a multilateral free trade agreement that aims to eventually integrate economies in the Asia-Pacific region, scrapping tariffs and other trade barriers between members. Over the weekend, the leaders of the United States, Peru, Australia, Vietnam and Malaysia showed their keenness in joining the pact, as a summit gathering of the 21 member economies of the Asia-Pacific Economic Cooperation (Apec) in Yokohama. Prime Minister Lee Hsien Loong hailed this interest in TPP membership as the 'most significant' outcome of the two-day annual summit.
- The Straits Times, P1
- Also quoted in The Business Time, P2, “Apec leaders agree to work on regional free trade pact”.
CHINA - 4 China state banks halt new credit to developers
China's four biggest state banks have used up their full-year credit quotas for property developers and will stop extending new loans to them for the rest of the year, an official newspaper reported yesterday. China Real Estate Business, run under the Ministry of Housing and Urban-Rural Development, said the four banks had halted approval of new loans since the end of last month. It quoted several unnamed executives from the lenders. Chinese banks typically frontload a large part of their loan quotas in the first quarters of the year to reap more gains from interest. Beijing has taken steps to tame the property market since April, including raising down payments and mortgage rates and tightening control in financing and lending to developers. China's four biggest state banks are the ICBC, China Construction Bank, Bank of China and Agricultural Bank of China.
- The Straits Times, B24
Exchange Rates (extracted from xe.com)
1.00 SGD = 0.77 USD
1.00 SGD = 5.11 CNY
1.00 SGD = 2.39 MYR
1.00 SGD = 0.47 GBP
1.00 SGD = 868.05 KRW
1.00 SGD = 34.40 INR
1.00 SGD = 6,873.83 IDR
ST Index change: 3,253.75 (+1.75) *As at Mon 15 Nov 2010 09:09 AM
SIBOR (3 mths): 0.43751 (S$)
SWAP (3 mths): 0.26769 (S$)
Cycling enthusiasts at park connectors usually make their way round winding trails through nature reserves and forested areas, but the Northern Explorer Park Connector Network (PCN) will have them pedalling through urban landscapes as well. The 25km loop links not only 11 nature sites and parks such as Admiralty Park, Yishun Park and Lower Seletar Reservoir Park, but also heartland towns in the northern part of Singapore. At the launch of the northern network, Home Affairs and Law Minister K. Shanmugam noted that besides recreational uses, park connectors also helped facilitate inter-town commuting. The $19 million Northern Explorer PCN passes alongside six MRT stations and about half of the stretch runs along train viaducts. The connector also showcases Singapore's biodiversity. A wide variety of birds such as woodpeckers and kingfishers as well as different species of butterflies and dragonflies can be spotted along the way. The Northern Explorer is the third loop of park connectors developed by the National Parks Board (NParks) - coming after the Eastern Coastal PCN, which opened in 2007, and the Western Adventure PCN, which opened last year. Together, they make up 150km of cycling paths. NParks aims to complete 300km of an islandwide grid linking major parks, nature sites and housing estates by 2015. A fourth loop in the north-eastern part of Singapore is expected to be unveiled next year.
- The Straits Times, B4
80% of Lakefront Residences sold
Some 70 units of The Lakefront Residences were sold over the weekend, bringing its total sales since Friday's preview to 320 units. The 320 units were sold at an average price of $1,020 psf. The 99-year leasehold condo is next to Lakeside MRT station and near Jurong Lake, with unit sizes ranging 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 were also 32 four-bedroom apartments and 17 penthouses up for sale.
- The Business Times, P11
Getting burnt over high-end homes
However, 90% of sub-sale transactions still turned a profit. A Savills analysis of caveats captured by the URA’s Realis as at Oct 19 showed that 9 units bought in 2007 were sold in 2010 at a loss in the sub-sale market. But the bulk of homes bought from 2006 to 2009 - 78 out of 87 - were sold for a profit, the analysis found. The fact that all 9 losses were on units bought in 2007, and it may be due to the high prices the owners paid when the residential market reached its peak in 2007. In contrast, units bought in 2006, 2008 and 2009 were re-sold at a profit in 2010. As of now, the number of loss-making transactions remains very low. 90% of sub-sale transactions this year still made profits, ranging from $3,620 to $1.92 million. At the low point of the market in Q1 2009, only 67.5% of sub-sales of private apartments and condos yielded a profit. That proportion grew to 95.1% in Q1 2010.
- The Business Times, P1
Asia-Pacific free trade area set to expand
Asia-Pacific economies have taken a major step towards turning the entire region into a free trade area, with five more members seeking to join the Trans-Pacific Partnership (TPP). Now made up of Singapore, Brunei, Chile and New Zealand, the TPP is a multilateral free trade agreement that aims to eventually integrate economies in the Asia-Pacific region, scrapping tariffs and other trade barriers between members. Over the weekend, the leaders of the United States, Peru, Australia, Vietnam and Malaysia showed their keenness in joining the pact, as a summit gathering of the 21 member economies of the Asia-Pacific Economic Cooperation (Apec) in Yokohama. Prime Minister Lee Hsien Loong hailed this interest in TPP membership as the 'most significant' outcome of the two-day annual summit.
- The Straits Times, P1
- Also quoted in The Business Time, P2, “Apec leaders agree to work on regional free trade pact”.
CHINA - 4 China state banks halt new credit to developers
China's four biggest state banks have used up their full-year credit quotas for property developers and will stop extending new loans to them for the rest of the year, an official newspaper reported yesterday. China Real Estate Business, run under the Ministry of Housing and Urban-Rural Development, said the four banks had halted approval of new loans since the end of last month. It quoted several unnamed executives from the lenders. Chinese banks typically frontload a large part of their loan quotas in the first quarters of the year to reap more gains from interest. Beijing has taken steps to tame the property market since April, including raising down payments and mortgage rates and tightening control in financing and lending to developers. China's four biggest state banks are the ICBC, China Construction Bank, Bank of China and Agricultural Bank of China.
- The Straits Times, B24
Exchange Rates (extracted from xe.com)
1.00 SGD = 0.77 USD
1.00 SGD = 5.11 CNY
1.00 SGD = 2.39 MYR
1.00 SGD = 0.47 GBP
1.00 SGD = 868.05 KRW
1.00 SGD = 34.40 INR
1.00 SGD = 6,873.83 IDR
ST Index change: 3,253.75 (+1.75) *As at Mon 15 Nov 2010 09:09 AM
SIBOR (3 mths): 0.43751 (S$)
SWAP (3 mths): 0.26769 (S$)
Friday, November 12
Property Market Updates (10 Nov 2010)
Top bids for Hougang site just 2.6% apart
The more sober bidding mood continued at a state tender for a 99-year leasehold private condominium site at Upper Serangoon View in the Hougang area, as developers remained mindful of the sustained land supply being delivered by the state. The top bid of $320.15 psf of potential gross floor area - from a tie-up of Frasers Centrepoint, Far East Organization and Japan's Sekisui House - was within market expectations and just 2.6% above the second highest offer by a unit of Centurion Properties. It bid about $312 psf ppr. Yesterday's tender drew just four bids. A unit of CapitaLand offered $302 psf ppr, while a unit of City Developments bid at $278 psf ppr. This is believed to be Osaka-based Sekisui House's first major Singapore real estate venture. The group is the largest home builder in Japan and prides itself on building environmentally-friendly houses. In a joint statement, Frasers Centrepoint, Far East and Sekisui said: 'This is an attractive site as the development will enjoy water views (from the adjacent Sungei Serangoon) and the greenery from nearby Punggol Park. We are planning to build about 470 units (eight blocks of 17 storeys) on the site. Tender result is consistent with the pattern for the previous four state tenders for 99-year leasehold private condo land where top bids have also come in below the $350 psf ppr mark. This pattern reflects caution on the part of developers who are mindful of the continuity of sites coming on. There will be a Government Land Sales (GLS) tender closing every week till mid-December, and the first-half 2011 GLS Programme can be expected to throw up a wide selection of sites when it's announced. In May this year, MCL Land paid $456 psf ppr for a site at the corner of Hougang Avenue 2 and Yio Chu Kang Road that can be developed into a five-storey condo. That plot is next to a landed housing estate. In the resale market, units at Evergreen Park and Rio Vista (both nearby 99-year condos) were sold at $600-720 psf in July to September 2010.
- The Business Times, P10
- Also quoted in The Straits Time, B29, “Serangoon residential site draws just 4 bids”.
Bought: $20m in June 2009 ; Sold: $37m in Oct 2009
Good-class bungalow owners are cashing in on rocketing property prices. A CBRE analysis of URA Realis caveats shows that good-class bungalows are netting bumper profits for owners who have seen average psf prices rise almost 30% over the past year. Several have taken to buying and selling their good-class bungalows within a period of less than two years. At least seven good-class bungalows bought since May last year have been sold within 18 months of purchase, with four sold within a year, with a profit of as much as 85 per cent over the purchase price. This massive gain was seen by a 40,677 sq ft good-class bungalow property on Ridout Road near the Holland area, translating to a $17 million gain within a four-month span. At least one home, on Nassim Road, has even been sold five times within the past six years - soaring from $9.8 million in 2005 to $43.5 million this year. It sold at $1,800 psf in April this year - almost 4.5 times the $405 psf it was sold for in February 2005. The 24,186 sq ft property had changed hands at $620 psf in August 2006, $760 psf in December the same year, followed by $1,000 psf in June 2007. Experts said that good-class bungalows have turned out to be one of this year's star investment propositions. URA data shows that non-landed home prices inched up 1.6 per cent in the third quarter, while prices of detached homes rose 8.4 per cent over the same period. This increase is one of the steepest over the last 15 years, said Cushman and Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng. He noted that the keen buying interest in good-class bungalows was being driven by limited supply, making it the safest buy for a home buyer not limited by affordability. The owners are usually ultra-high net worth Singaporeans, who are mostly professionals, businessmen or entrepreneurs. Typically, only Singapore citizens can own a good-class bungalow, but permanent residents may obtain permission to buy small bungalows with land areas of about 15,000 sq ft.
- The Straits Times, P14
S'pore Pools buys its new home
A unit of Malaysia's IOI Properties Bhd is understood to have sold IOI Plaza, a landmark 12-storey granite office block at the corner of Middle Road and Prinsep Street, for $139 million. The price works out to about $1,381 per square foot (psf) based on a net lettable area (NLA) of about 100,640 sq ft. The building is on a site with about 85 years' remaining lease. The buyer is said to be Singapore Pools, whose headquarters are currently located a stone's throw away at PoMo at 1 Selegie Road. According to a media report in 1996, IOI unit Future Link Properties developed the building at a total cost of about $100 million, inclusive of about $52.2 million or $444.18 per square foot per plot ratio paid for the 99-year leasehold plot which it won at a state tender that closed in January 1996. The 27,992.60 sq ft plot was one of the first 'white' sites to be sold by Urban Redevelopment Authority. Owners of such sites can make changes of use during the plot's 99-year leasehold tenure without paying a differential premium. The plot was sold with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area). The plot's zoning and plot ratio remain unchanged in the current Master Plan 2008.
- The Business Times, P3
The more direct route is via foreign funds buying into property directly, pushing prices up. The other is by flows pushing down interest rates and allowing people to borrow more to buy property.
- The Straits Times, B29
8,000 apply for 1,322 BTO flats
Demand for the latest batch of new Housing Board flats is high, with the offering oversubscribed by six times. Nearly 8,000 people applied for the 1,322 build-to-order (BTO) units in Sengkang and Bukit Panjang. By contrast, oversubscription rates for the two previous projects in Yishun in September and Woodlands last month were more modest, at 2.4 and 2.2 respectively. The oversubscription rate for the latest project, while high, was not as high as some of the earlier BTO projects such as the ones in Punggol and Boon Lay in May, which was more than six times the number of units available. Bigger flats proved the most popular this time around. Five-room premium flats at Anchorvale Horizon in Sengkang were oversubscribed by 12 times, with 1,838 applications for 148 units. The demand for the Sengkang flats, which are within walking distance from the town centre and the MRT, is a sign buyers are becoming more discerning. Some people are also prepared to wait for the flats they want because now they have more options, he added. HDB announced 16,000 new BTO flats this year, with 22,000 expected next year.
- The Straits Times, B5
Interpol to build global base in Singapore
Interpol is to build a base in Singapore, which will beef up the international policing organisation's crime-fighting efforts in the Asia-Pacific region. The Interpol Global Complex is expected to house about 300 staff, including enforcement officers seconded from Interpol's 188 member countries and those hired by the organisation. It could be sited in the Tanglin area, where several embassies are located. The proposal for the complex was approved by members at the Interpol General Assembly meeting in Qatar. The agreement was signed yesterday by Home Affairs and Law Minister K. Shanmugam and Interpol secretary-general Ronald Noble. The decision to build the complex is a recognition that technology and globalisation have allowed crimes to be carried out simultaneously across continents. The complex will complement Interpol's headquarters in France, the MHA said. It is expected to be operational by 2014.
- The Straits Times, B5
More SMEs understand concept of true branding
Local enterprises are becoming more aware about branding, going by the quality of submissions at this year's Singapore Prestige Brand Awards (SPBA). According to one of the judges, most of the applicants have gone beyond the basic concept of improving their product quality and services, and are looking at branding as a positioning and differentiating element. Even B2B businesses are beginning to focus on brand building. Among this year's SPBA winners, there were more than 20 that came from non-retail, non-F&B sectors. They included industrial property developer Kingsland Development and liquefied petroleum gas supplier Union Energy Corp.
- The Business Times, P11
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