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05-03-12, 20:12
http://www.straitstimes.com/Money/Story/STIStory_771088.html
Far East tops chart for home sales
Local developers reign in top 10 list; most sales in suburban areas
Published on Feb 27, 2012
http://www.straitstimes.com/STI/STIMEDIA/image/20120226/ST_IMAGES_ETDEVELOPER.jpg
An artist's impression of euHabitat, Far East's residential project in Jalan Eunos, where 645 units have been sold. The developer sold 2,718 new homes last year, with more than 80 per cent of sales in suburban areas. -- PHOTO: FAR EAST ORGANIZATION
By Esther Teo, Property Reporter
DEVELOPER Far East Organization led the way in sales last year, selling 2,718 new homes on the back of a robust property market and low mortgage costs.
The privately owned firm captured about 17 per cent of the market, with unit sales almost double those of City Developments (CDL) and its parent Hong Leong Group, which sold a total of 1,434 units.
Sim Lian Group, Frasers Centrepoint and CapitaLand rounded off the top five, according to data complied by consultancy DTZ Research.
DTZ Asia Pacific research head Chua Chor Hoon noted that local developers finished the year occupying eight places in the top 10. The exceptions were Hongkong Land - mainly through its subsidiary MCL Land - and Chinese developer MCC Land.
MCL Land's projects include Terrasse, where it moved 335 units last year, and the fully sold 120-unit Este Villa.
MCC Land sold 372 units, including sales at projects like Canberra Residences and The Nautical.
Experts say most of the sales were in suburban areas, so developers that built mainly for the mass-market segment benefited.
This could explain why developers such as Wing Tai and SC Global - which focus largely on prime and high-end homes - did not feature in the top 10 last year.
More than 80 per cent of Far East's sales were in suburban areas, while top-selling projects by CDL and Hong Leong were mass-market developments such as The Palette in Pasir Ris and H2O Residences in Sengkang.
'(This is because) Far East has been active in bidding for government land sale sites since the ramp-up in the programme (from) the second half of 2010. The top-selling project for Far East last year was euHabitat (in Jalan Eunos), where 645 units were sold,' DTZ's Ms Chua said.
The bumper release of suburban land by the Government in recent years has allowed smaller players to get a foothold in the market, experts said.
Ms Chua said that while Far East plus CDL and Hong Leong are typically among the top-selling developers as they have built up larger landbanks over the years, some small to mid-sized developers managed to muscle their way into the top 10 list last year.
Sim Lian Group clinched third spot, largely due to two suburban projects - A Treasure Trove in Punggol, with sales of 798 units, and Parc Vera in Hougang, where 226 units found buyers.
Similarly, Fragrance Properties made it to the top 10 based on the sales of various small projects. Its bestseller was 116-unit Suites@East Coast, where 99 units were sold.
Mr Colin Tan, research head at Chesterton Suntec International, said more developers also formed joint ventures last year compared with the number the year before, due to rising prices that have led firms to spread the risk through joint ventures. The most notable was the tie-up between Frasers and Far East.
The trend is likely to continue as developers ride on each other's strength to develop the increasing number of mixed-use sites the Government is pushing out, added Mr Tan.
Experts say that more activity from foreign developers can also be expected in the coming years.
'Existing foreign players are likely to continue their business here as they grow in confidence, and this might attract more foreign developers to enter the market,' Mr Tan said.
Chinese developers such as MCC Land and Qingjian Realty, and Malaysia's SP Setia and IOI Properties landed government land sites last year.
[email protected]
Far East tops chart for home sales
Local developers reign in top 10 list; most sales in suburban areas
Published on Feb 27, 2012
http://www.straitstimes.com/STI/STIMEDIA/image/20120226/ST_IMAGES_ETDEVELOPER.jpg
An artist's impression of euHabitat, Far East's residential project in Jalan Eunos, where 645 units have been sold. The developer sold 2,718 new homes last year, with more than 80 per cent of sales in suburban areas. -- PHOTO: FAR EAST ORGANIZATION
By Esther Teo, Property Reporter
DEVELOPER Far East Organization led the way in sales last year, selling 2,718 new homes on the back of a robust property market and low mortgage costs.
The privately owned firm captured about 17 per cent of the market, with unit sales almost double those of City Developments (CDL) and its parent Hong Leong Group, which sold a total of 1,434 units.
Sim Lian Group, Frasers Centrepoint and CapitaLand rounded off the top five, according to data complied by consultancy DTZ Research.
DTZ Asia Pacific research head Chua Chor Hoon noted that local developers finished the year occupying eight places in the top 10. The exceptions were Hongkong Land - mainly through its subsidiary MCL Land - and Chinese developer MCC Land.
MCL Land's projects include Terrasse, where it moved 335 units last year, and the fully sold 120-unit Este Villa.
MCC Land sold 372 units, including sales at projects like Canberra Residences and The Nautical.
Experts say most of the sales were in suburban areas, so developers that built mainly for the mass-market segment benefited.
This could explain why developers such as Wing Tai and SC Global - which focus largely on prime and high-end homes - did not feature in the top 10 last year.
More than 80 per cent of Far East's sales were in suburban areas, while top-selling projects by CDL and Hong Leong were mass-market developments such as The Palette in Pasir Ris and H2O Residences in Sengkang.
'(This is because) Far East has been active in bidding for government land sale sites since the ramp-up in the programme (from) the second half of 2010. The top-selling project for Far East last year was euHabitat (in Jalan Eunos), where 645 units were sold,' DTZ's Ms Chua said.
The bumper release of suburban land by the Government in recent years has allowed smaller players to get a foothold in the market, experts said.
Ms Chua said that while Far East plus CDL and Hong Leong are typically among the top-selling developers as they have built up larger landbanks over the years, some small to mid-sized developers managed to muscle their way into the top 10 list last year.
Sim Lian Group clinched third spot, largely due to two suburban projects - A Treasure Trove in Punggol, with sales of 798 units, and Parc Vera in Hougang, where 226 units found buyers.
Similarly, Fragrance Properties made it to the top 10 based on the sales of various small projects. Its bestseller was 116-unit Suites@East Coast, where 99 units were sold.
Mr Colin Tan, research head at Chesterton Suntec International, said more developers also formed joint ventures last year compared with the number the year before, due to rising prices that have led firms to spread the risk through joint ventures. The most notable was the tie-up between Frasers and Far East.
The trend is likely to continue as developers ride on each other's strength to develop the increasing number of mixed-use sites the Government is pushing out, added Mr Tan.
Experts say that more activity from foreign developers can also be expected in the coming years.
'Existing foreign players are likely to continue their business here as they grow in confidence, and this might attract more foreign developers to enter the market,' Mr Tan said.
Chinese developers such as MCC Land and Qingjian Realty, and Malaysia's SP Setia and IOI Properties landed government land sites last year.
[email protected]