Real News‎ > ‎2012‎ > ‎July 2012‎ > ‎

04 July 2012

4th July, Wednesday




Private home owners gain from property rebound

Source: Business Times

The recovery of Singapore's property market since 2009 has been a welcome fillip for the wallets of private home owners.

Based on caveats lodged, private residential home owners pocketed at least $20.3 billion in gross profit since the sector recovered in late 2009, explaining robust developer sales of around $60.1 billion in the period, according to a report.

The report also noted that actual profit figures would have been higher as gains from collective sales were not factored into the profit calculations, among various things.

But overall profitability has fallen since the first half of last year - when home owners pocketed more than $4 billion in profit - to $3.2 billion in the second half of 2011 and $2.7 billion in the first half of this year.

Similarly, the percentage of unprofitable transactions in the secondary market has also crept up slightly from one per cent in the latter half of 2011 to 2 per cent during the first half of this year.

Notably, the top five most profitable secondary market projects in the first six months of this year comprised the likes of Serangoon Garden Estate (most profitable with $59 million in profit realised), The Quintet, Frankel Estate, Seletar Hills Estate and Trevista, according to data from URA and Square Foot Research.

On the flip side, the five most unprofitable projects in the same period included developments such as Reflections at Keppel Bay (the most unprofitable project, where a total loss of $7.4 million was realised), St Regis Residences, Latitude, CityVista Residences and Duchess Residences.


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Investment Sales


Landmark Tower up for public tender

Source: Business Times

A prime 99-year leasehold residential site was launched for public tender Tuesday.

Landmark Tower, located on Chin Swee Road, has a site area of about 60,821 sq ft and is zoned "residential" under the 2008 Master Plan. The development, comprising 38 floors and a 360-degree view of the Singapore skyline, also boasts a plot ratio of around 4.014 based on the property's existing gross floor area (GFA).

Consultants say the property is likely to be warmly received at an indicative price range of $280-288 million, though that excludes a $42 million cost to top up the lease to 99 years.

Factoring that in, the indicative prices for the plot would translate to around $1,315-1,355 per sq ft per plot ratio (psf ppr), or $1,252-1,286 psf ppr should a developer choose to tap the 10 per cent bonus GFA for balcony space.

The tender closes at 3pm on 7 August.


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Capital values of industrial space rising

Source: The Straits Times

The capital values of industrial space rose in the last quarter but rents eased as firms turned cautious about taking on more commitments, according to a new report.

The report said prices have edged up partly because cooling measures in the residential sector have diverted some investors to the once unglamorous market of industrial real estate.

Benchmark prices have also been set in new project launches.

The freehold project AZ@Paya Lebar, for example, has units priced above $1,000 per sq ft, more expensive than even some residential developments.

Prices in the secondary market for first-storey industrial space increased 4 per cent to $577 psf in the three months to 30 June, compared with the first quarter, while upper-storey prices rose 4.9 per cent to $430 psf.

Rents tended to go in the other direction, with rates falling for business park and high-tech industrial space although they held firm for conventional industrial sites.

Average rents for business parks and high-tech space dipped 0.7 per cent quarter-on-quarter to $4.35 psf per month while conventional industrial rents on upper storeys were unchanged at $1.75 psf per month.

Rents are tipped to keep falling, given the slowdown in economic growth, which will only compress yields further.


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