Real News‎ > ‎2012‎ > ‎August 2012‎ > ‎

23 August 2012

23rd August, Thursday




Sales in luxury property market rebound

Source: Business Times

Even as investors stream back into the luxury property market, causing sales activity to almost double in the second quarter, further price correction may be in the offing given the growing number of unsold homes.

Data compiled by a consultancy showed that there were as many as 4,000 luxury condominiums completed over the past year in Orchard Road, accounting for about 7 per cent of total non-landed stock in the luxury market.

Of this, 16 per cent (over 600 units) remain unsold, bringing total unsold stock in the prime segment to 12,855 units. This comprised 731 completed units and 12,124 uncompleted ones, half of which are ready to be launched.

Prices for non-landed new sales dipped 5 per cent quarter-on-quarter to $2,374 per sq ft in 1Q 2012, and slid further to $2,230 psf in 2Q.

The spike in sales activity was observed across all market segments, with new sales up 246 per cent quarter-on-quarter at 235 units in 2Q, sub-sales rising 34 per cent to 94 units, and resales increasing 86 per cent over the previous quarter to 585 units.

This pushed the number of units sold to 914, compared with a three-year low of 453 non-landed units sold in 1Q, following the eurozone debt crisis and imposition of the additional buyer's stamp duty (ABSD) in December last year.

With a looming pipeline of 19,056 units to be completed in the next few years, any price cuts seen in the sector could revive demand and possibly result in sales hitting 1,000 units per quarter until year-end, the consultancy said.


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Parking crunch at new condos

Source: The Straits Times

The growth of public transport and a chronic lack of space are prompting developers to cut back on the number of carpark spaces in private condominiums.

Many new condos now typically provide one space per dwelling unit - meeting the minimum requirement stipulated by the Land Transport Authority - while those for visitors are being chopped altogether.

But certain projects in the city and Marina Bay and those close to MRT stations can have fewer carpark spaces than the prescribed minimum, and providing visitor spaces is not mandatory.

Developers say that locality - the proximity of an MRT station, for example - and the profile of buyers and their lifestyle are considered when deciding on providing parking spaces.


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Red-hot demand for new 99-year leasehold private homes

Source: Channelnewsasia

About three in four private residential projects launched in the past year are 99-year leasehold developments, according to some property analysts.

Demand for these units has been strong, and market watchers said home buyers should be aware of what they are buying into, as the capital value of leasehold properties depreciates progressively as the development ages.

Experts said the price premium for a freehold property could be as high as 40 per cent.

For investors, market watchers said new leasehold units offer a better rental yield at 3.5 to 4.2 per cent, compared to about 2.5 to 3.5 per cent for freehold homes.

But those looking at wealth preservation or handing down their homes to their children will be better off with a freehold property.

Leasehold or freehold, comments gathered on Channel NewsAsia's Facebook page are mixed. But most agree that location is still the most important factor.


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Top bid of $32.3m for Bukit Batok industrial site

Source: Business Times

A 30-year leasehold industrial site on Bukit Batok Street 23 Wednesday drew four bids, with the top bid coming in at $32.3 million, or $80.03 per sq ft per plot ratio (psf ppr).

The top bid, submitted by Soilbuild Group Holdings, beat the second-highest bid of $26.3 million or $65.06 psf ppr put in by Vantage Properties Pte Ltd, which is controlled by Lim Kim Hong and Lim Huixing.

The prices seen at recent industrial government land sales show that the measures put in place by the government to cool the industrial market have worked, said an analyst, referring to the tender for the 30-year leasehold, 240,745.62 sq ft plot at Mandai Link which closed earlier this month at $75.25 psf ppr.

"Before all of these restrictions came into effect, a 60-year leasehold site would sell at twice the amount psf ppr. The bids are now more reasonable," he said.

The subject site, which cannot be subdivided in the first 10 years has a site area of some 161,578 sq ft. It has a maximum permissible gross plot ratio of 2.5 and is zoned Business 1. It has a maximum building height of 153 metres above mean sea level.


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Ascendas JV to develop phase 5 of Fusionopolis

Source: Business Times

Ascendas Land, a wholly owned subsidiary of Ascendas Pte Ltd, has entered into a joint venture (JV) with Tokyo-based Mitsui & Co to develop the fifth phase of Fusionopolis.

The new JV company, Ascendas Fusion 5, will be held by Ascendas Land and Mitsui in 75 per cent and 25 per cent stakes respectively. It is also established as a special-purpose company (SPC) under Japanese law, Ascendas said Wednesday.

Ascendas Fusion 5 will develop the business park at an estimated cost of $370 million, which Ascendas and Mitsui will thereafter own and manage.

Construction is expected to start at the end of 2012 and complete in Q4 2014.

On completion, Fusionopolis Phase 5 will be a 17-storey multi-tenanted facility with a gross floor area of 67,490 sq m on a land site of 19,283 sq m within the business park, one north.


Links to the story:,-Mitsui-in-S$370m-project



Depot Close industrial site for sale

Source: The Straits Times

An industrial building at Depot Close is up for sale via an expression of interest.

The development is on a 70,162 sq ft site and has a JTC leasehold tenure of 30 years, which started in March 1990. It comes with an option to renew the lease for another 30 years.

The site has an allowable gross plot ratio of 2.5 and is zoned for use under Business 1 category of the 2008 Master Plan. This category includes clean and light industries, and businesses which require "functionality and flexibility" such as those dealing in computer software development, packing and warehousing services, printing and publishing.

The seven-storey building is fully air-conditioned, with three loading bays, two goods lifts and a passenger lift.

Offers for the site must be in by 1pm on 20 September.


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