15th June, Friday
Residential
Another round of cooling measures unlikely: analyst Source: Business Times Current market conditions probably do not warrant another round of property cooling measures, according to an analyst. The fragile economic outlook and softness in the broader property market suggests that another round of measures may be unwarranted at this point, he said. The last round of measures in December last year already dealt quite a severe blow to overall sentiment and transaction." He noted, in his report, that prices of private residential properties have fallen 0.1 per cent in Q1, compared with an increase of 0.2 per cent in the same quarter last year. Transaction values and volumes were worst hit following the last round of cooling measures, plunging some 26 per cent and 14 per cent respectively from the final quarter of last year. Singapore's luxury property market - which is defined by homes exceeding $5 million in worth - has also "practically collapsed" with transactions in the segment declining by some 61 per cent, according to the same report. Activity from foreign buyers was also significantly lower after the additional 10 per cent stamp duty kicked in with foreign purchasers (including permanent residents) accounting for a muted 22.7 per cent of transactions during the first 5 months of 2012, as compared with 34.7 per cent over the same period a year ago.
Link to the story: http://www.businesstimes.com.sg/print/85028
Industrial
Solid demand for Kaki Bukit industrial site despite new rules Source: The Straits Times The robust response to a Kaki Bukit site suggests that developers are not fazed by new rules governing industrial land. Eight bidders lined up for the 30-year leasehold plot at the junction of Kaki Bukit Road 5 and Kaki Bukit Avenue 6, with several bids coming in above expectations. Hock Lian Seng Holdings lodged the highest tender of $27.3 million, or about $139 per sq ft per plot ratio (psf ppr). That is well ahead of some property experts, who tipped a top price of up to $24 million. Others expected about $100 psf ppr in the tender, which closed Wednesday. The 13,072 sq m site is zoned for Business 2 development, which includes light industry, utilities or telecommunication uses. Dennis Wee Group's senior manager of research and consultancy, Mr Lee Sze Teck, said Wednesday that developers still seem positive about the industrial sector. He estimated that the breakeven price for the site is between $280 psf and $330 psf, with units being sold for between $350 psf and $400 psf. The site can yield about 100 units, he said. Another analyst noted that it is in an established industrial area. He pointed out that the plot is small, which could make it more manageable and less costly to develop.
Links to the story: http://www.straitstimes.com/print/Money/Story/STIStory_811182.html http://www.businesstimes.com.sg/print/85006 http://www.channelnewsasia.com/stories/singaporebusinessnews/print/1207627/1/.html
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