News Highlights Saturday 26 July 2008

Private homes to take a slower road to completion
Official data shows that the number of private homes that could be completed by end-2011 may be less than previously thought. URA’s latest Q2 figures showed that 46,480 private homes are expected to be completed between Q3 2008 and end-2011. This figure is 18% - or 10,021 units - lower than the figure in URA's Q1 data. The difference was due to some units being completed in Q2 and removed from the supply pipeline, as well as some completions being put on hold. Knight Frank said that rents and capital values should hold slightly better. There should also be less panic selling as those who've bought homes on deferred payment schemes have more time to clear their purchases if their units are in projects whose completions are being delayed. URA's price index for non-landed private homes in Core Central Region (CCR) dipped 0.1% in Q2 over the preceding quarter. The Q2 decline in CCR came on the back of a 0.5% drop in the price index for uncompleted homes in the region; the index for completed homes rose 0.3%. Non-landed home overall price index rose 0.7% in Q2 for Rest of Central Region and by 0.9% in Outside Central Region (OCR). URA's islandwide price index for private homes inched up 0.2% quarter on quarter (qoq) in Q2. The index has risen 3.9% in the first half from the end-2007 level. Developers sold a total 1,525 private homes in Q2, double the Q1 volume. The number of subsale transactions rose 10.6% qoq to 440 – most of them in the OCR, where subsale volume jumped 39% to 154 units.

- The Business Times, P1 (“See attached – Numbers game”)



Sharp drop in growth of private home prices
Private home prices inched up just 0.17% in Q2, well below the 3.8% in Q1. Prices peaked and rental growth braked sharply between April and June, with property consultants forecasting the beginning of a decline. The minuscule rise was even below the 0.4% increase URA had predicted at the beginning of this month. Colliers International said that this is a strong indication that home prices are finally softening. Experts say prices are being dragged down by stubbornly gloomy market sentiment, stemming from the slowing global economy, high inflation and erratic stock market. According to CBRE Research, developers have started to price projects more 'realistically' and individual home sellers are accepting lower offers, leading to an overall moderation of prices. In prime districts, prices of luxury homes dipped for the first time in four years after a spectacular climb of almost 70 per cent since 2005. City-fringe and suburban homes barely fared better, with prices rising below 1% in the second quarter. Growth in home rents also halved in the second quarter to just 2.5%, the lowest in two years. This could be due to fewer expatriates coming in as well as landlords starting to lower their asking rentals. CBRE predicts an 'inevitable' correction in prices 'to the tune of 5% to 10%’ in the second half of the year. But Colliers believes Singapore's mid-term prospects remain positive on the back of the two integrated resorts and that will hold prices steady and ensure they do not fall by more than 3% in the third quarter. Still, caution prevails amid a large chunk of unsold homes waiting in the pipeline. Developers are sitting on some 12,500 new homes that are ready for launch, said URA. Prices and rentals of offices also grew more slowly in the quarter, as firms eased pressure on office supply by moving out of the central areas. The bright spot is the HDB resale market, where prices keep rising due to higher valuations and strong demand from upgraders, downgraders and permanent residents, said ERA Asia-Pacific. Resale deals jumped 22% to 7,760 transactions in the second quarter, boosted by more sales of bigger flats. A quarter of all flats sold between April and June were five-room and executive flats.

-The Straits Times, P1 – See Attached (“Softening Prices”)



HDB resale market buoyant but upgrader effect still muted
The Housing and Development Board (HDB) announced that its Resale Price Index rose by 4.5% in Q2 2008 over the previous quarter and 8.4% since Q4 2007. The number of resale transactions also increased by 22% quarter on quarter (qoq) to hit 7,760 transactions. 14,120 transactions were recorded in H108, almost half of the 29,450 transactions for the whole of 2007. While a buoyant resale market can translate into a stronger HDB upgrader base, it may still be too early for developers to count on upgraders to prop up the private residential market. DTZ said that HDB upgraders are price-sensitive and according to its analysis, HDB upgraders accounted for 28% of all private homes bought in Q1 2008, up from 22% in the preceding quarter. HDB now offers a spectrum of property types, such as the Design, Build and Sell Scheme flats, to cater to more specific needs and price brackets. Sources say that the 578-unit Park Central at AMK has received around 1,000 applications since its launch on June 23. ERA said that HDB upgraders tend to be those who sell their five-room or executive flats, and this number has not increased significantly. Five-room flats made up 26% of HDB resale transactions in Q2 2008, up from 25% in the previous quarter while executive flats made up 9%, up from 7% qoq. Savills believes that HDB upgraders will return to lend strong support to the private property market.

- The Business Times, P8 (See attached – “Correlation in price index?”)




Yishun to get exciting new facilities in facelift
Yishun is in line for a radical renewal that will smarten up existing facilities and add exciting new ones. Details of the rejuvenation plan were announced yesterday, and include additions to the town centre, including the Khoo Teck Puat Hospital, a new library, covered walkways and possibly a new shopping complex integrated with the bus interchange. A new boardwalk will also connect the town centre to outdoor areas like Yishun Pond. The plan, Remaking Our Heartland: Enriching My Yishun, is part of a nationwide Neighbourhood Renewal Programme announced by PM Lee last year. Its aim is to enhance the value of homes and neighbourhoods through upgrading and estate renewal projects. The first Home Improvement Programme (HIP) was also launched and it allows flat owners to have certain essential improvements carried out at the expense of the Government, which will also subsidise some optional ones. Owners can vote on the work they want done at their estates and in their flats. HDB needs a minimum support of 75 per cent from eligible residents before works can be carried out.

- The Straits Time, H1




URA gives go-ahead for three hotels
Some residential, commercial and industrial projects received provisional permission from the URA in Q2 this year. Far East Organization unit China Classic received provisional permission to build a 384-room hotel at Cross Street. Residential projects that received URA's provisional permission in Q2 this year include Frasers Centrepoint's 717-unit condo at Lakeside Drive in the Boon Lay area, Chip Eng Seng's 372-unit condo at Elias Road in Pasir Ris; and UOL/Peak Century's 643-unit condo at Simei Street 4. All these projects have 99-year leasehold tenure. EC Prime Pte Ltd also received approval to develop 228 apartments at Alexandra Road. URA also gave the nod for the development of business park space in three new projects - to Soilbuild Group Holdings to develop Solaris at Ayer Rajah Avenue/Fusion Walk (42,780 sq m); to Crescendas Bionix Pte Ltd to develop 41,200 sq m at Biopolis Phase 3; and to Ascendas for a project at Changi Business Park Crescent (26,810 sq m). Provisional permission for multiple-user factories were also granted for projects at Commonwealth Drive and Jalan Tepong. Trio Link Development clinched approval for a 21,570 sq m industrial development at Playfair Road. UOB Kay Hian Trading obtained URA's go-ahead for its transitional office development at Anthony/ Scotts roads (13,020 sq m). URA also gave provisional permission to Ritzland Investment for 12,050 sq m of offices at Mountbatten Road.

- The Business Times, P8



June tourist arrivals slip 4.1% - the first drop in 51 months
Last month's visitors’ arrivals were down 4.1% from a year earlier - a sharp dip that followed a slow 0.8% growth in April and May this year. Arrivals grew 2.9% as tourism receipts declined 0.2% in the first six months of this year, compared with January-June 2007. A total of 5.1 million people visited the island in H1 this year, spending an estimated $6.5 billion during their stay. Visitor days from January to June 2008 are estimated to have hit 20.4 million - an increase of 13.5%. The average length of stay was 3.89 days - 8.7% higher than the same period last year. Indonesia, China, India, Australia and Malaysia were Singapore's top five visitor-generating markets in that order, accounting for 51% of all arrivals. Among the top 15 markets, Vietnam, Australia, China, India, South Korea and Germany showed the highest growth.

- The Business Times, P9




Strata board rules: It's no go for Tampines Court sale
Any hopes of collecting a windfall for their flats by the more than 400 owners of Tampines Court were dashed yesterday when their collective sale was thrown out STB. The controversial $405 million deal also involved an amount of $10 million called the beta sum that is meant to compensate owners for financial loss. STB said: 'From the evidence...the transaction is not in good faith, taking into account the sale price and the method of distributing the proceeds of the sale.' A decision was crucial as the buyers - Frasers Centrepoint and Far East Organization - would not grant an extension. The STB's ruling now means the sale is dead. The STB has yet to disclose the grounds for rejection. It may do so at a later date.

- The Straits Time, S30




CapitaLand appeal on Gillman deadline
CapitaLand, the lead buyer of Gillman Heights, has asked the Court of Appeal to review one point of a High Court ruling that allowed the estate's collective sale to proceed. Its move comes after a group of 10 minority owners from the estate filed an appeal over the sale earlier this week. CapitaLand bought the $548 million Gillman Heights site together with Hotel Properties and two private funds. The sale was opposed by some owners but was eventually given the go-ahead by the High Court. But in dismissing the objecting owners' appeal, the Court also ruled that the sale committee could not agree to extend the deadline for obtaining the Strata Titles Board's approval to Feb 5. This was despite a supplemental collective sale agreement that had made a valid extension of the deadline to this date. It is this point that CapitaLand is focusing on. Its legal move is to protect itself if the point is raised by the minority owners at the court hearing.

- The Straits Time, S32



Rivage
- Freehold
- 17 luxurious 2-, 3- and 4-bedroom units
- Off Meyer Road
- Sky terrace facilities – 3 pools, BBQ pavilion, fitness area
- Foreigners eligible
- Interest absorption scheme, no interest payable till TOP
- Expected TOP: Dec 2009
- Developer: Aurum Land Pte Ltd
- Marketing agent: ERA- The Straits Times, P11 – advertisement
Ivory
- Close proximity to future Paya Lebar Central- Collection of 20 freehold units- Showroom at 15 Ceylon/Onan Road- facilities includes a Jacuzzi, gym, swimming pool and BBQ pit- Close to Parkway Parade and Katong eateries
- Expected TOP: Dec 2012- Developer: Oxley
- The Straits Times, P14 – advertisement
Naturalis
- 43-unit freehold residential apartments
- Show Gallery at 12 Still Road- With flowering plants, lush greenery and cascading waterfalls- 1, 2, 3 bedrooms and penthouses- Close to Parkway Parade and East Coast Park- Special financing package available
- Expected TOP: Dec 2011
- Developer: Abacus Development Pte Ltd
- Marketing agent : Huttons
- The Straits Time, P16 - advertisement
Clover by the Park
- Phase 1: more than 70% sold
- Choice units available from $867,000 onwards
- 616-unit condo
- Two 39-storey towers
- 3, 4-bedroom and penthouse
- Attractive financing package
- Foreigners eligible
- 99-years leasehold w.e.f 10 Sept 2007
- Bishan Road
- Developer: Sim Lian Group
- The Straits Times, S24 - advertisement
Signature @ Lewis
- Freehold
- 32 units
- No. 1 Lewis Road
- Developer: Hiap Hoe
- Marketing agents: HSR, OrangeTee
- The Straits Times, P26 - advertisement
Versilia on Haig
- Near future Paya Lebar Central- 128 freehold condo. units- 3 bedroom from $985,000- Close proximity - Showflat at Ipoh Lane- Developer : Hoi Hup Realty Pte Ltd- Marketing agents : DTZ, HSR- The Straits Times, P28 - advertisement
Woodsville28- 110 exclusive units
- Near Potong Pasir MRT Station- 2 to 3+1 bedroom apartments and 2 penthouses with private jet pool- 36m lap pool, spa pool, gym & BBQ- Within 1Km from st. andew’s village- Showflat at Woodsville Close- Developer : Frasers Centerpoint- The Straits Times, P32 - advertisement
ParkCentral@AMK
- DBSS public housing project- 30-storey with 578 4-5 bedroom units with condo-style fittings and finishes- 400m jogging track, themed precinct pavilions, fitness corner, BBQ garden- Ang Mo Kio Ave 3- Developer : Greatearth Developments Pte Ltd- Marketing agent : DTZ- The Straits Times, S5 - advertisement
Shelford Suites
- 77 freehold units
- Private lift lobby for all units
- Conferred the BCA Green Mark GoldPlus Award
- Approved deferred payment scheme
- Developer: City Developments
- Marketing agents: CBRE, Savills
- The Straits Times, S9 - advertisement
Charlton Villas
- 39 Strata Terraces & 4 Semi-Ds- 4 bedrooms ranging from 2,734 sqft to 4,026 sqft- 5 mins walk to Kovan MRT, heartland Mall- Showflats at Charlton Lane- Developer : Hoi Hup Realty Pte Ltd- Marketing agent : Huttons- The Straits Times, S11 – advertisement
The Aristo @ Amber
- 1, 2, 2+1, 3, 4+1 bedrooms
- Interest absorption. No instalment till TOP
- Freehold condo
- 23 Amber Road
- Expected TOP: 31 Dec 2013
- Developer: AG Capital Pte Ltd
- Marketing agent: Huttons
- The Straits Times, S31 - advertisement
Kovan Residences
- 2, 3, 4-bedroom units, single-level or duplex penthouses with private pools and Jacuzzi
- 99-years leasehold from 31 Dec 2007
- Expected TOP: 2 Oct 2013
- JV Developer: Centurion Kovan Pte Ltd, Lian Beng Group
- Marketing agent : DTZ
- The Straits Times, H3 - advertisement
The Florentine
- 68 Florence Road
- Extra-large pool
- Superior penthouse units available
- Close to Kovan MRT and Heartland Mall
- Tenure: 947 years 8 months 23 days from 5 Oct 1934
- Expected TOP: 30 June 2014
- Developer: Roxy Homes
- Marketing agent: HSR
- The Straits Times, H6 - advertisement
De Centurion- 42 units of 1+1, 2 & 3 bedroom apts and 3-bedroom with rooftop garden penthouse
- Panoramic view of sea and surrounding landmarks- Showflat at Tanjong Rhu Road, next to Singapore swimming club- Expected TOP : 31 Dec 2010- Developer : Target Home P/L- Marketing Agent : Huttons- The Straits Times, H9 - advertisement
East Coast Residences
- 59 Exclusive Units- Basement carpark
- Deferred payment 5% + 5% balance upon TOP- Freehold- 412 Upper East Coast Road- Developer : Crescendas Group- Marketing Agent : OrangeTee
- The Straits Times, H11 - advertisement
Livia
- New release of choice units
- Pasir Ris Drive 1
- 2-4 bedroom units and penthouses
- Exciting activity zones for family
- Tenure: 99-years leasehold (from 7 Jan 2008)
- Expected TOP: 31 Dec 2011
- Developer: Hong Realty Pte Ltd (joint venture between City Developments Ltd and Hong Leong Holdings Ltd
- Marketing agents: ERA, Knight Frank
- The Straits Times, H14 - advertisement
The Ambra
- Freehold
- 24 units
- Foreigners eligible
- 8 min to Kembangan MRT
- Expected TOP: 30 June 2012
- Developer: Roxy Homes
- Marketing agent: Savills
- Lorong H Telok Kurau
- The Straits Times, P36 – advertisement
Dakota Residences
- 2, 3, 4 bedroom units: 1,023 – 1,894 sqft
- Foreigners eligible
- Zero instalment home loan package till TOP by DBS
- 99-years leasehold from 11 Sept 2007
- Joint development by Ho Bee Group and NTUC Choice Homes
- Marketing agents: DTZ, CBRE
- The Straits Times, P42 - advertisement
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