View Full Version : New private home sales up 29% in February
scary...., KBT now worried..., need to come up with more CM?
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1189155/1/.html
New private home sales up 29% in February
By Wong Siew Ying | Posted: 15 March 2012 1424 hrs
SINGAPORE: Demand for new private homes in Singapore continued to increase in February, after rising sharply in January.
The Urban Redevelopment Authority said excluding executive condominiums, 2,413 new private homes were sold in February, up by about 29 per cent from the previous month.
In January, 1,872 new units changed hands, almost three times more than December's sales.
For February, the best selling projects were mostly located in the suburban areas.
The top seller was Parc Rosewood with 380 units sold.
Guillemard Edge, which is located in the city fringe, also performed well with sales of 275 units.
Meanwhile, home buyers also snapped up executive condominium (EC) units.
257 units of ECs have been sold at Twin Waterfalls, 187 units at The Tampines Trilliant and 186 units at The Rainforest.
Including ECs, a total of 3,138 units were sold last month, up 51 per cent compared to January.
- CNA/al
Maybe people make money from stock market decide to go buy a property.
Astronotus oscellatus
15-03-12, 15:35
More cooling measures coming?
But market hot only in rural areas leh...and new launches...resale died.
Who wants to buy resale when you have plenty to choose from new launch? New = first hand leh . Just like virgin.
First hand comes with a 20-30% higher price tag. Second hand maybe got tenant give you bonus angpow in rental for being the virgin investor instead.
More like closer to 30%-50%? (instead of 20-30%?)
See WaterTown - average $1350 psf
Bedok Residences - average $1500 psf.
Look at their furnishings, you pay $50 psf you can renovate the resale to look NEW to be just like them! :doh:
>10% premium not worth it to buy new!
First hand comes with a 20-30% higher price tag. Second hand maybe got tenant give you bonus angpow in rental for being the virgin investor instead.
Solid siah! Feb new private home sales = 2,413.
Feb resale transactions = ??? :beats-me-man:
scary...., KBT now worried..., need to come up with more CM?
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1189155/1/.html
New private home sales up 29% in February
By Wong Siew Ying | Posted: 15 March 2012 1424 hrs
SINGAPORE: Demand for new private homes in Singapore continued to increase in February, after rising sharply in January.
The Urban Redevelopment Authority said excluding executive condominiums, 2,413 new private homes were sold in February, up by about 29 per cent from the previous month.
In January, 1,872 new units changed hands, almost three times more than December's sales.
For February, the best selling projects were mostly located in the suburban areas.
The top seller was Parc Rosewood with 380 units sold.
Guillemard Edge, which is located in the city fringe, also performed well with sales of 275 units.
Meanwhile, home buyers also snapped up executive condominium (EC) units.
257 units of ECs have been sold at Twin Waterfalls, 187 units at The Tampines Trilliant and 186 units at The Rainforest.
Including ECs, a total of 3,138 units were sold last month, up 51 per cent compared to January.
- CNA/al
You can have italian marble, timber flooring, de dietrich kitchen applicances, miele washing machine and dryer, hansgrohe taps and the full works for with just 10% premium.
For first time pte ppty owner and for own stay, they dun care abt premium. Evidence has it. New is the choice esp in boom market. Will only dun mind go for resale in down market. As long as price do not crash, new is always preferred. Dun feel song knowing that my neighbor in resale unit pay so much lower than me and I can feel them laughing inside. At least in new project, everyone sama sama. Next time want to sell no need to undercut, all huat or down together. This is most ppl's mentality.
For first time pte ppty owner and for own stay, they dun care abt premium. Evidence has it. New is the choice esp in boom market. Will only dun mind go for resale in down market. As long as price do not crash, new is always preferred. Dun feel song knowing that my neighbor in resale unit pay so much lower than me and I can feel them laughing inside. At least in new project, everyone sama sama. Next time want to sell no need to undercut, all huat or down together. This is most ppl's mentality.
Yeah in new all neighbours feel sama sama excluding subsale but the neighbours in the other developments might snigger at the price their newer neighbours pay. Like when ATT reaches it first resale, they would probably still be joking about watertown.
First hand comes with a 20-30% higher price tag. Second hand maybe got tenant give you bonus angpow in rental for being the virgin investor instead.
And new one has to wait for a few years before you can move in, resale one can move in within months, it depends on whether can wait or not.
Here we go again... March figures will go up even more? KBW having sleepless nights again... oops! :rolleyes:
And new one has to wait for a few years before you can move in, resale one can move in with months, it depends on whether can wait or not.
Some say no more new smell. But surely a new coat of paint and fresh carpentry will give that new smell?
Yeah in new all neighbours feel sama sama excluding subsale but the neighbours in the other developments might snigger at the price their newer neighbours pay. Like when ATT reaches it first resale, they would probably still be joking about watertown.
lol! ATT will be shopping at Waterway already but Watertown residents still havnt move in
And new one has to wait for a few years before you can move in, resale one can move in within months, it depends on whether can wait or not.Also dependent on whether there's new projects in the area you chose to stay, like near parents, schools, etc... :spliff:
Yeah in new all neighbours feel sama sama excluding subsale but the neighbours in the other developments might snigger at the price their newer neighbours pay. Like when ATT reaches it first resale, they would probably still be joking about watertown.
Agree with this. Go for the first project in an undevelop area instead of the last. But if the last dev is cheap than the first few launches nearby, that will be heart attack for those who bought first! The right way is to reward those who buy first, make more sense.
Here we go again... March figures will go up even more? KBW having sleepless nights again... oops! :rolleyes:
They dare to apply ssd up till 4 years from TOP on uncompleted projects or not? That should slow things down.
Agree with this. Go for the first project in an undevelop area instead of the last. But if the last dev is cheap than the first few launches nearby, that will be heart attack for those who bought first! The right way is to reward those who buy first, make more sense.
Not to be overcritical of watertown. I think there will be some other development down the road that will bear the brunt of the jokes since watertown isn't the last project in that area.
ikan bilis
15-03-12, 16:38
They dare to apply ssd up till 4 years from TOP on uncompleted projects or not? That should slow things down.
developers become dead fish... until all resale stock cleared... :D
For first time pte ppty owner and for own stay, they dun care abt premium. Evidence has it. New is the choice esp in boom market. Will only dun mind go for resale in down market. As long as price do not crash, new is always preferred. Dun feel song knowing that my neighbor in resale unit pay so much lower than me and I can feel them laughing inside. At least in new project, everyone sama sama. Next time want to sell no need to undercut, all huat or down together. This is most ppl's mentality.
Actually, I feel that prices also varies for new ppty. Different prices varies for different levels. Never been to VVIP viewing before but isn't during this viewing, the price is cheaper than later on. Not very sure leh, what do you think? I just bought a unit, always feel that I'm paying more than other units because I bought it at a later date. I went into the URA website to check my caveat lodge, it seemed that mine is the highest so far for my sq ft, aiyah, didn't know that we can ask for discount until I come across this forum, learn a lot of things from this forum, good good, thanks thanks.
Maybe people make money from stock market decide to go buy a property.
how much did you made from stocks?
They dare to apply ssd up till 4 years from TOP on uncompleted projects or not? That should slow things down.
Wow, if this rumour go around, I think people will start to cheong into the ppty market just in case they get caught in the new cm, jialat liao!:scared-3:
Not to be overcritical of watertown. I think there will be some other development down the road that will bear the brunt of the jokes since watertown isn't the last project in that area.
Yea, since now both projects are almost sold out, i really think Weehur will price their units near WT pricing.
how much did you made from stocks?
Not me. I think there are some members here who play stocks, you can ask them, i just half joking half speculating.
Wow, if this rumour go around, I think people will start to cheong into the ppty market just in case they get caught in the new cm, jialat liao!:scared-3:
good wat, then all huat together push prices higher and higher
Actually, I feel that prices also varies for new ppty. Different prices varies for different levels. Never been to VVIP viewing before but isn't during this viewing, the price is cheaper than later on. Not very sure leh, what do you think? I just bought a unit, always feel that I'm paying more than other units because I bought it at a later date. I went into the URA website to check my caveat lodge, it seemed that mine is the highest so far for my sq ft, aiyah, didn't know that we can ask for discount until I come across this forum, learn a lot of things from this forum, good good, thanks thanks.
I think prices increase in tandem with the market. Perhaps the project u bought was launched earlier when prices are not yet so peakish. So after awhile dev will adjust the price up. If u sway sway bought during peak but just before a cm then those who bought after u might get discount due to cm lor. Sometimes luck plays a part.
Soon there'll be a COE for property :D Buy a cert first before being able to own 1.
Not me. I think there are some members here who play stocks, you can ask them, i just half joking half speculating.
there is always a saying, when thing gets too hot it is better to stay away. My view is to avoid chasing after those ridicules 1400psf OCR project as buyers in the segment are usually less experience and more irrational with their purchase.
Wow, if this rumour go around, I think people will start to cheong into the ppty market just in case they get caught in the new cm, jialat liao!:scared-3:
No la, i honestly don't think it's possible, cos they might accidentally channel the pent up demand to the resale sector and that might indirectly push the new projects higher.
But haven't all the members here been saying the higher this market goes, the more likely we will see more.
So if prices continue to rise, would they actually rush to buy for fear of new CM? Kinda ironic given that they held back because of rising prices.
there is always a saying, when thing gets too hot it is better to stay away. My view is to avoid chasing after those ridicules 1400psf OCR project as buyers in the segment are usually less experience and more irrational with their purchase.
There are only a few developments that carry that pricey tag to be fair. They aren't the majority.
They dare to apply ssd up till 4 years from TOP on uncompleted projects or not? That should slow things down.
I am not going to bet against another CMs. But I think the next one might be targeting on developers to prevent them from pushing out too many MM apartment.
I can imagine if government doesnt control this, developers will all be flooding the market with MM and SOHO units. Which in future could create a major problem if there is indeed a over supply of MM apartment in Singapore and shortage of proper 3 bedder family apartment.
There are only a few developments that carry that pricey tag to be fair. They aren't the majority.
I think she's referring to those MM 1 bedders
I am not going to bet against another CMs. But I think the next one might be targeting on developers to prevent them from pushing out too many MM apartment.
I can imagine if government doesnt control this, developers will all be flooding the market with MM and SOHO units. Which in future could create a major problem if there is indeed a over supply of MM apartment in Singapore and shortage of proper 3 bedder family apartment.
Why is that a problem?
Singaporeans got used to living in flats. Soon we'll just get used to living in 6xxsqft 3 bedders. Maybe not too far away. just 2-3 more generations?
There are only a few developments that carry that pricey tag to be fair. They aren't the majority.
I am not sure about that. From what I have seen so far, majority of the successful launches are mostly development with MM / SOHO concept which are around $1m range. And it does look like punggol is going to be a hot bed for developers to push out such apartment.
Like one of the forumer said, anything above $1.5m is hard to move, so why would developers want to build bigger units?
Why is that a problem?
Singaporeans got used to living in flats. Soon we'll just get used to living in 6xxsqft 3 bedders. Maybe not too far away. just 2-3 more generations?
there is no replacement to displacement when come to housing. Especially when you have a family.
there is no replacement to displacement when come to housing. Especially when you have a family.
Yea, everyone will just have to squeeze then.
That's what most Singaporeans are doing already. 300-500k BTOs can buy u a large landed property even in certain parts of Australia.
A small city like singapore, very soon units are all gonna be smaller and smaller.
Look around, check out all the enbloc projects. After they redevelop, there's always more units than before.
Yea, everyone will just have to squeeze then.
That's what most Singaporeans are doing already. 300-500k BTOs can buy u a large landed property even in certain parts of Australia.
A small city like singapore, very soon units are all gonna be smaller and smaller.
Look around, check out all the enbloc projects. After they redevelop, there's always more units than before.
anyway, I think MM is a risky investment, too small for family, too expensive for single.
thomastansb
15-03-12, 17:22
US alone printed don't know how many billions of dollars. There aren't many countries with solid financial standing. I mean, if you have 1 million, will you invest in North Korea or Japan? All money flow to Singapore, HK and those first world nations. Inflation is going to eat us up anyway.
US alone printed don't know how many billions of dollars. There aren't many countries with solid financial standing. I mean, if you have 1 million, will you invest in North Korea or Japan? All money flow to Singapore, HK and those first world nations. Inflation is going to eat us up anyway.
biggest fear is inflation and interest rate. I think it is easier to handle inflation than interest rate. For inflation, just cut down on spending, for interest rate, you have no choice but to pay.
Mm or soho should have a min internal usable space, excluding air con ledge that sort of bs, of 550psf. Unless we want our years of improving quality of living to go down the drain.
anyway, I think MM is a risky investment, too small for family, too expensive for single.
Family and Investment don't gel together. Properties for family should never be treated as Investment properties. Should never ever jeopardise the entire family.
MM too expensive for singles? More like big units are too expensive. What are u talking about????? :doh: Find me a 398k large size unit?
Family and Investment don't gel together. Properties for family should never be treated as Investment properties. Should never ever jeopardise the entire family.
MM too expensive for singles? More like big units are too expensive. What are u talking about????? :doh: Find me a 398k large size unit?
I am not sure why is it so difficult to understand.
If a $1m apartment is affordable to single, then wont a $2m apartment be affordable for a duo income earner as well?
So if anything that is above $1.5m is not moving, then what are you talking about?
As for rental, how many expats and foreigners here can afford to pay $3k per month on rental by himself?
you should stop slapping your own head,it might damage your brain.
I am not sure why is it so difficult to understand.
If a $1m apartment is affordable to single, then wont a $2m apartment be affordable for a duo income earner as well?
So if anything that is above $1.5m is not moving, then what are you talking about?
As for rental, how many expats and foreigners here can afford to pay $3k per month on rental by himself?
you should stop slapping your own head,it might damage your brain.
I think many husbands here will wish their wives gonna work till 60 with them to have double his income.
Why are u comparing $1million? U said MM are expensive for singles. which MM u talking about? Cliff?
If MM are expensive i dont understand which other types of properties are affordable. Developers are making units smaller to make it affordable if u havnt noticed.
Like i already asked, if MM is expensive, Please show me another 398k private condominium non MM sized.
I think many husbands here will wish their wives gonna work till 60 with them to have double his income.
Why are u comparing $1million? U said MM are expensive for singles. which MM u talking about? Cliff?
If MM are expensive i dont understand which other types of properties are affordable. Developers are making units smaller to make it affordable if u havnt noticed.
Like i already asked, if MM is expensive, Please show me another 398k private condominium non MM sized.
I think it is better that you get your facts right before going into an argument.
1) I was saying that MM apartment is a risky investment (I repeat INVESTMENT) which is too small for family and too expensive for SINGLE.
2) You said MM too expensive for singles? More like big units are too expensive. What are u talking about????? :doh:
If we are talking about investment, I thought we should be talking about rental instead of own stay Even for own stay, how can a MM apartment be affordable for a single income earner? $1m, $2-3K mortgage per month?
They dare to apply ssd up till 4 years from TOP on uncompleted projects or not? That should slow things down.
Then no more bickering only rejoicing in this forum! Right now only developers are having all the fun....:tongue3:
Price, i think jadey's point is that the ever growing supply of mm could outstrip demand at some point making mm a less attractive investment,and not forgetting you are paying top psf for this kind of units.
Then no more bickering only rejoicing in this forum! Right now only developers are having all the fun....:tongue3:
The buyers sucking it up look like they are having fun too... Ha.
I think it is better that you get your facts right before going into an argument.
1) I was saying that MM apartment is a risky investment (I repeat INVESTMENT) which is too small for family and too expensive for SINGLE.
2) You said MM too expensive for singles? More like big units are too expensive. What are u talking about????? :doh:
If we are talking about investment, I thought we should be talking about rental instead of own stay Even for own stay, how can a MM apartment be affordable for a single income earner? $1m, $2-3K mortgage per month?
So Back to point 1, if MM is too expensive for Singles (Investment or even single living alone) What is affordable for singles?
I been talking about 398k MMs like PRW for the past few posts but u kept insisting on 1mil condos. Aiya i cant be bothered anymore. go argue with urself.
I already state my point. If you feel MM class of pte pty is expensive for singles, i dont think singles can afford any other private pty in Singapore.
Btw, FYI, i'm 24, single and i do own MM
Price, i think jadey's point is that the ever growing supply of mm could outstrip demand at some point making mm a less attractive investment,and not forgetting you are paying top psf for this kind of units.
Yea i do agree that theres gonna be oversupply of MMs. But his point on MM is expensive for singles im just wondering wat else is affordable then?
Developers build MM the whole point is to bring Quantum low (yes high PSF due to small space).
The buyers sucking it up look like they are having fun too... Ha.
Fun like waiting for ipad 3? or fun like the exhilaration of flying through the air 2 seconds before hitting ground? :D
Yea i do agree that theres gonna be oversupply of MMs. But his point on MM is expensive for singles im just wondering wat else is affordable then?
Developers build MM the whole point is to bring Quantum low (yes high PSF due to small space).
Affordable now but if they cannot unlock positive equity from their mm in future if the value comes off due to oversupply then doesn't that make it a lousy invesment as they prepare to upgrade to their next pad?
devilplate
15-03-12, 18:17
very jialat....
govt stop foreigners from buying liao....den sporeans become the last carrot to carry the baby wor.....
the whole idea of ppty game is to sell high high to foreigners.....do u agree wif me?
So Back to point 1, if MM is too expensive for Singles (Investment or even single living alone) What is affordable for singles?
I been talking about 398k MMs like PRW for the past few posts but u kept insisting on 1mil condos. Aiya i cant be bothered anymore. go argue with urself.
I already state my point. If you feel MM class of pte pty is expensive for singles, i dont think singles can afford any other private pty in Singapore.
Btw, FYI, i'm 24, single and i do own MM
I am not sure what is your point of talking about 398K MM apartment when majority of what is in the market are now in the $1m range.
Btw, how many PRW type MM apartment are there in the market? any new launches?
I am not sure what is your point of talking about 398K MM apartment when majority of what is in the market are now in the $1m range.
Btw, how many PRW type MM apartment are there in the market? any new launches?
how do you define as MM, size range?
the whole idea of ppty game is to sell high high to foreigners.....do u agree wif me?
Er I think the name of the game is just to make money and more money.:)
No, the rules have changed. Now policy seems to be to sell new launch at high high price to citizens & PRs in OCRs! They will be the ones carrying the babies and bringing them up! :banghead:
All the CMs are meant to reduce resale transactions too? Just look at Feb 2012 resale transactions! Pathetic!
very jialat....
govt stop foreigners from buying liao....den sporeans become the last carrot to carry the baby wor.....
the whole idea of ppty game is to sell high high to foreigners.....do u agree wif me?
No, the rules have changed. Now policy seems to be to sell new launch at high high price to citizens & PRs in OCRs! They will be the ones carrying the babies and bringing them up! :banghead:
All the CMs are meant to reduce resale transactions too? Just look at Feb 2012 resale transactions! Pathetic!
Y-o-Y still not too bad lar.. mia hiam buay pai lol
Search Results: 479 record(s) retrieved
Property Type : Non-Landed - All (exclude EC), Executive Condominium
Sale Type : Sub Sale, Resale
Contract Date : FEB 2012 - FEB 2012
Search Results: 638 record(s) retrieved
Property Type : Non-Landed - All (exclude EC), Executive Condominium
Sale Type : Sub Sale, Resale
Contract Date : FEB 2011 - FEB 2011
very jialat....
govt stop foreigners from buying liao....den sporeans become the last carrot to carry the baby wor.....
the whole idea of ppty game is to sell high high to foreigners.....do u agree wif me?
Totally!!!!!
But wat to do. Willing buyers mah... So some pple have to be willing sellers!!!
Y-o-Y still not too bad lar.. mia hiam buay pai lol
Search Results: 479 record(s) retrieved
Property Type : Non-Landed - All (exclude EC), Executive Condominium
Sale Type : Sub Sale, Resale
Contract Date : FEB 2012 - FEB 2012
Search Results: 638 record(s) retrieved
Property Type : Non-Landed - All (exclude EC), Executive Condominium
Sale Type : Sub Sale, Resale
Contract Date : FEB 2011 - FEB 2011
Hmm on statistically only 638 x 2 agents made money . How many agents are there in singapore btw any idea?
As for rental, how many expats and foreigners here can afford to pay $3k per month on rental by himself?
Plenty, if they are expats.
8k is the min salary for the P1 pass. For this range, the housing allowance is normally 3k for a single, up to 5k for a family. These group are not the high flyers. Just the normal back office operations ppl. High flyers with salary higher than 15k usually have housing allowance above 6k for the very minimum.
What do you know about expat housing allowance ?
MM near city still has a market. MM in outskirts, well, is untested. Wish the buyers luck....
Plenty, if they are expats.
8k is the min salary for the P1 pass. For this range, the housing allowance is normally 3k for a single, up to 5k for a family. These group are not the high flyers. Just the normal back office operations ppl. High flyers with salary higher than 15k usually have housing allowance above 6k for the very minimum.
What do you know about expat housing allowance ?
MM near city still has a market. MM in outskirts, well, is untested. Wish the buyers luck....
MM near city centers and MRT stations definitely have a market. Not all work in city center.
Plenty, if they are expats.
8k is the min salary for the P1 pass. For this range, the housing allowance is normally 3k for a single, up to 5k for a family. These group are not the high flyers. Just the normal back office operations ppl. High flyers with salary higher than 15k usually have housing allowance above 6k for the very minimum.
What do you know about expat housing allowance ?
MM near city still has a market. MM in outskirts, well, is untested. Wish the buyers luck....
Well not it it have malls n Mrt. ! Pund intended.
Hmm on statistically only 638 x 2 agents made money . How many agents are there in singapore btw any idea?638 x 2 made money in Feb 2011 while 479 x 2 in Feb 2012. May not be x 2 lah... Also, some agents v zhai can sell multiple units... :rolleyes: so more agents eat grass lor... :cool:
638 x 2 made money in Feb 2011 while 479 x 2 in Feb 2012. May not be x 2 lah... Also, some agents v zhai can sell multiple units... :rolleyes: so more agents eat grass lor... :cool:
actually being an TOP agent you may enjoy your sucess while you are living in THIS world but who knows what kind of curse you get and when you move on to the NEXT world....Torture...:hell-hath-no-fury::D
PS:Many years ago i tried to be an agent but somehow after a few months in the line even after i managed to co broke a few rental deals i realised that this INDUSTRY not for me as i am honest/sincere/truthful and if i wish to uphold these qualities i CANNOT be an agent...:cool:
actually being an TOP agent you may enjoy your sucess while you are living in THIS world but who knows what kind of curse you get and when you move on to the NEXT world....Torture...:hell-hath-no-fury::D
PS:Many years ago i tried to be an agent but somehow after a few months in the line even after i managed to co broke a few rental deals i realised that this INDUSTRY not for me as i am honest/sincere/truthful and if i wish to uphold these qualities i CANNOT be an agent...:cool:
Good for you. I walk away from all dishonest agents and it doesn't take too long to sense the dishonesty.
Btw, FYI, i'm 24, single and i do own MM
You do not intend to buy a HDB in the near future?
You do not intend to buy a HDB in the near future?
When i can get married my income over the limit liao, so i figured no point waiting. buy resale lor?
When i can get married my income over the limit liao, so i figured no point waiting. buy resale lor?
resale hdb? I think you will have to sell your private...
Best to marry "young" before reaching income ceiling.
resale hdb? I think you will have to sell your private...
Best to marry "young" before reaching income ceiling.His income ceiling already v high so after marriage, it'll probably exceed lor unless wife to be not working. Otherwise must wait till 35 yrs old and that'll not be young anymore... :)
resale hdb? I think you will have to sell your private...
Best to marry "young" before reaching income ceiling.
Yup, not intending to hold for too long! If cannot sell due to bad price then own stay lor? Anyway I'm given 6 mths to sell all after buying resale :) clear mop buy again.
His income ceiling already v high so after marriage, it'll probably exceed lor unless wife to be not working. Otherwise must wait till 35 yrs old and that'll not be young anymore... :)
Haha bro, I don earn tat much compared to the other bros and sistas here la!
But yup, unless wife is jobless buy EC?
Haha bro, I don earn tat much compared to the other bros and sistas here la!
But yup, unless wife is jobless buy EC?
When I was 24, I was still studying... you are doing well, saved up so much so fast to own a mm.
When I was 24, I was still studying... you are doing well, saved up so much so fast to own a mm.
Heh thanks! :) I did my degree while serving NS to save time. Otherwise I'll still be studying now.
TS, sorry, i cant create new thread..peiseh have to hijack you thread to post.
Just to share..
SINGAPORE PROPERTY WEEKLY Issue 43
Singapore Property This Week
Page | Back to Contents 2
Residential
Decline in property investment sales
There has been a decline in propertyinvestment sales in Q1 2012 to $3.4 billion asof March 12, though the final figure couldpotentially reach $3.8 billion. The figure thusfar is a 57% fall from Q4 2011’s $7.7 billionand a 60% fall from Q1 2011's $8.4 billion. This decline might be explained by the uncertain global economic situation and thenew government policies such as the ABSDand new conditions on the industrialGovernment Land Sales. While the market isnot expected to pick up in the next quarterwith mainly GLS transactions, H2 2012 maypick up and see more private transactions ifthe global economy stabilises. The overallproperty investment sales may reach $20 - 23billion of investment sales.
The current figure is made up by $2.3 billion from the residential sector. In the residentialsector, private investment transactionsdecreased by 71% from the last quarter to $429 million, while those from the publicsector fell by 0.4% to $1.84 billion. Despitethe initial knee-jerk reaction to the ABSD, thepicking-up in the mass market meant the GLSare still seeing decent activity. For the luxurymarket and collective land sales, however,there was a sharp decline as a result of the ABSD.
SINGAPORE PROPERTY WEEKLY Issue 43Page | Back to Contents 3
In the collective sales market especially, thetotal transactions amounted to a mere $145million, compared to $745 million for Q1 2011and $789 million in Q4 2011. The total salesmay reach $1.5 - $2 billion compared to $3.2billion last year though smaller sites or sitesthat have a mixed-use component maycontinue to see buyers.For the commercial sector, the totalinvestment sales came to a total of $822million so far in Q1, 68% below the lastquarter, probably a result of lower rental ratesalthough the situation is expected to improvein H2 as capital values and the number oftransactions increase. The industrial sectorsimilarly reflects dismal figures, with a total of$260 million worth of investment sales, 70%down from Q4 2011, though this may beattributed to the lack of GLS industrial sites inthis period.Four residential plots released, top plot inTampinesFour residential plots that can yield up to2,415 units have been released under theGLS, out of which three are in the confirmedlist. Of these, there are two EC sites that cangenerate a total of 1,300 units. One is locatedat Tampines Central 7 next to TampinesTrilliant and the future Downtown lineTampines MRT station, while another islocated at Woodlands Ave 5/Drive 16, next tothe LaCasa EC development. The third on theconfirmed list is a private condo plot located atTampines Avenue 10/1, next to the Arc atTampines development and opposite theWaterview condo project. The reserve list plotis also a private condo plot, which is locatednext to the confirmed list private condo plot.Consultants voted the EC plot in Tampines tobe the most popular,with expectations for the top bid to be $280-420 psf ppr from 10-13 bids. Meanwhile, theWoodlands EC site is expected to draw threeto five bids, with a top bid of $250-330 psf pprand the Tampines confirmed list site isexpected to draw a top bid of $350-465 psfppr.
Commercial
JTC’s net allocation of ready-built facilitiesfell in Q4 2011JTC Corp’s net allocation of ready-builtfacilities (RBF) fell to minus 11,400 in Q42011, bringing the total in 2011 to minus 20,000 sq m, compared to 5,500 sq m in2011. This is a result of a 37% decrease ingross allocation to 59,600 sq m from 94,100sq m in 2010 and a 9% decrease in RBF supply to 3,175,100 sq m. Termination hasalso decreased by 10% from 79,600 sq mfrom 88,600 sq m while occupancy levels alsoregistered a fall from 97.4% in 2010 to 96.5%in 2011.In the case of prepared industrial land (PIL),however, the net allocation in 2011 was arecord 202.7 ha compared, four times the47.2 ha in 2010.20% increase in hotel room supply by 2016 By 2013, there will be an increase of 4,028hotel rooms with the opening of 19 new hotelsand another 5,200 rooms by 2016, bringingthe total increase between now and 2016 to9,228 rooms. In 2011, the room supply hasincreased by 1,944 or 4.9% with the numberof gazetted hotels increasing by 10 to 149.According to the Singapore Tourism Board,the total number of rooms here reached 49,719 in 2011.
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As demand for hotel rooms increases, hotelswill be able to increase the room rates, withthe average room rates (ARR) and occupancylevels increasing by 5-10% and to 83-86%respectively in 2012. The revenue peravailable room is also expected to increase 5-8% in 2012 from $212 in 2011.Leasehold Shenton House up for collectivesaleShenton House located along Shenton Way,is asking for $530 million or $1,720 psf pprinclusive of developmental charges of $73million for the use of the 11.76 plot ratio and$132 million to extend the lease from 56 to 99years. The plot ratio meant that the 36,350 sqft land area can be redeveloped up to amaximum GFA of about 427,476 sq ft. Zonedfor commercial use, it can be redeveloped intoa building with a maximum of 35 storeys. Thissite could potentially be redeveloped into amixed use development. Given its locationand its regular layout, which allows forbuilding efficiency, and its redevelopmentpotential, the site is likely to be popular amongdevelopers. The tender will close on April 19.Also on sale in the collective sale market isthe 66 strata-titled office units at BurlingtonSquare. These units located from the fifth tothe 12th floor of the building are asking forabout $101 million, or $1,500 psf, and haveabout 83 years of lease remaining. The totalsize of the units comes up to 67,738 sq ft, withunit sizes ranging from 549 to 5,221 sq ft.Since the average gross rental yield is anattractive 4-6%, and such units are ratherlimited, the units are expected to be popular,and all the more so due to the low interestrates. Tender closes on April 18.
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New Home Sales Surge in February – More Government Measures Ahead?
By Mr. PropwiseSales of residential property by developerssurged in February to exceed even thoseduring the 2007 and 2009 booms. The interesting (and perhaps worrying) aspect isthat the sales were largely driven by sales of Executive Condominiums (ECs) and mass market condos. In my opinion, this increases the risk of further Government action to clampdown on the still buoyant investment demand. Developers sold a total of 3,138 homes(including ECs) in February, an increase of51% on a month-on-month basis and 156%on a year-on-year basis. Total privateresidential sales (excluding ECs) was 2,413units, an increase of 29% month-on-monthand 471% on a year-on-year basis! In fact,three of the top ten selling projects were ECs:The Rainforest, Trilliant and Twin Waterfalls.Some might argue that this high growth is dueto the Chinese New Year (CNY) effect, asCNY fell in February in 2011 versus Januarythis year. But even if we combine the first twomonths of the year in 2012 and compare thatwith 2011, new home sales (excluding ECs)were still up 85%. Furthermore, most of thesales (81%) came from the Outside CentralRegion (OCR), which suggest that massmarket sales are driving the market.Increased Risk of Further Government Measures Despite the implementation of the Additional Buyer Stamp Duty (ABSD) in December 2011,which I thought was harsh, new home saleshave powered ahead. The worrying aspect isthat the demand has been mainly driven bythe mass market segment, while the luxurysegment has remained subdued asinternational buyers have stayed away dueboth to the ABSD and concerns about theglobal economic environment.The strength and bullishness of mass marketdemand could increase concern by theGovernment that middle-income investors(and especially first and/or second timeSingaporean home buyers) are still rushinglike lemmings into the property market,despite the uncertainty in the markets and theGovernment’s own efforts to clamp down onexcessive investment demand. This will thenincrease the risk that additional measures willbe implemented to further cool the propertymarket.
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On a more philosophical note, I believe thatthe root cause of this buoyant investmentdemand is the low interest rate environment.When real interest rates (nominal interestrates minus inflation) are negative, savers arebeing penalized whereas borrowers get thebenefit of cheap funds (or are even paid toborrow!).To put this in more concrete terms, banks arepaying close to 0% on deposits and so thereal purchasing power of your savings isbeing constantly eroded by inflation. In thissituation, anything that has positive yieldlooks attractive as an investment. Propertylooks doubly attractive because it is a realasset and is believed to be a good hedgeagainst inflation.But before you rush out to buy a propertykeep in mind that the low interest rateenvironment will not last forever and whatseems like a good idea in the short termmight turn out to be a bad idea in the longerterm. For example, if we go back to the firsthalf of 2008, inflation (as measured by theConsumer Price Index) was running at 7-8%,and we could have made very similararguments as the above on why propertylooked like a good investment. But anyonewho had bought then would have beencaught by the Global Financial Crisis whenproperty prices dropped by 25% (asmeasured by the Property Price Index).In times of crisis, cash is king, so make sureyou have an emergency fund to help you getthrough the tough times before you jump intoa property!
Sorry, if it is too long..it is the whole report, dont want to edite some and throw away some.. :ashamed1:
Heh thanks! :) I did my degree while serving NS to save time. Otherwise I'll still be studying now.NS has been good to you then... allowing you to do a degree while serving? Me no chance lah.. Lol! :cheers1:
NS has been good to you then... allowing you to do a degree while serving? Me no chance lah.. Lol! :cheers1:
Haha i was on the service side. :D lucky i guess
Haha i was on the service side. :D lucky i guess
Are you a White Horse?
Are you a White Horse?
haha i wish. if u read my other posts im from a rather poor family.
haha i wish. if u read my other posts im from a rather poor family.
To save >$100k by 24 young old is no mean feat.
To save >$100k by 24 young old is no mean feat.
Biz and gold helped :D
Keep up the good work whatever biz you were doing.
Biz has its ups and downs. Good to save up some cash as a buffer rather than locking it up in an illiquid property, which itself needs another set of cash buffer.
Biz has its ups and downs. Good to save up some cash as a buffer rather than locking it up in an illiquid property, which itself needs another set of cash buffer.
That's why i cashed out. Sold it off and now i'm salaried paid :( My MM just gives me some spare cash from its rental. I'm not living off it nor needing that lump sum paid up for it.
Sorry, can create new thread liao. deleted post.
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