8th October, Monday
Residential
Showflats continue to see good traffic Source: Business Times Neither the new restrictions on home loans nor the rain kept prospective buyers from condominium showflats over the weekend. Indeed, it was "business as usual" at newly launched projects Riversails at Upper Serangoon View and Skies Miltonia at Yishun. According to agents, more than 300 units have been sold at Allgreen Properties' 920-unit Riversails, with at least 20 homes sold over the weekend. Prices of the larger units average slightly over $800 per sq ft (psf), while the one-bedroom units average $1,000 psf. Separately, some 67 per cent of units at the 420-unit Skies Miltonia have found buyers; the developer is offering an 18 per cent discount, and throwing in the option for buyers of certain units to upgrade their flooring to marble. The figures show that sales are still moving, said Lee Sze Teck, senior manager, training, research and consultancy, at Dennis Wee Group. "I believe people are there to see if there is any reaction from the developers - if they will offer more incentives, or if they will hold prices stable," he said. The 748-unit eCO in Bedok South threw in an additional 2 per cent furniture voucher in addition to an array of discounts offered. One analyst was not surprised at the turnout seen at showflats. "The feverish pace of launches is driven by sentiment, which is still positive," he noted. Indeed, activity seen now seems less speculative with most buyers purchasing for occupation, or to upgrade, he said. "The bottom line is that interest rates are still low. (Apartments are) slightly less affordable now, but where else can you put your money?"
Link to the story: http://www.businesstimes.com.sg/print/257889
Retail
Retail space rents flat in Q3 but sale prices shoot up Source: The Straits Times Rents for retail space - from prime sites around Orchard Road to suburban outlets - flatlined in the third quarter but sale prices shot up. The rising cost of buying retail units has put the biggest squeeze on yields for landlords of any quarter in the past year. A consultancy said in a report last Thursday that retailers remain cautious about renting space given a slowdown in the regional economies and a tighter labour market. It noted that even as retailers are opening new stores, other less profitable ones are being shut. The result is that the average gross fixed rent of prime retail space in areas around Orchard and Scotts roads stayed flat at $30.33 per sq ft (psf) per month for the three months to 30 September. Suburban rents were unchanged at $28.35 psf per month. It was a different story for capital values. The price of prime space in both the Orchard/Scotts Road area and the suburbs posted strong growth as cooling measures in the residential sector diverted funds to the commercial and industrial markets. Higher selling prices in new developments in the primary market have also sent investors looking for deals in the resale sector. The average capital value of units in the Orchard/Scotts Road area rose 5.7 per cent from the second quarter while prices of suburban space went up 3.6 per cent. But the downside for landlords was that average yields for prime space in the Orchard area fell 25 basis points to 4.6 per cent. The consultancy said rents are expected to stay "more or less static for the rest of the year", given cautious retailer demand and impending new supply. About half of the pipeline supply from the fourth quarter to 2016 is expected to be completed in this quarter and in 2013.
Link to the story: http://www.straitstimes.com/st/print/523334
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