Home prices to see change, says CDL's Kwek

[Montaigne]

Kwek Leng Beng, Executive Chairman of City Developments Limited (CDL), expects property price trends in Singapore to change soon.
According to Kwek, in a span of six months, property developers will likely reduce launch prices of private housing projects not situated near MRT stations by approximately five percent, if they wish to increase the number of transactions amid the presence of more cautious buyers.
He added that developers of properties situated near MRT stations should be able to maintain their prices or even increase them marginally by at least one to three percent.
Aside from how economic developments in the Eurozone and US turn out and their impact on Singapore, the movement of private home prices will also depend on local competition.
"If in the vicinity, there are three or four developers selling at the same time, you will definitely have to consider reducing the price if you want to get out earlier."
Unlike some analysts, he does not see an oversupply in 2013 and 2014. He noted that the government will not likely impose measures that will destabilise the market.
"I think the government is more concerned about public housing and the new (National Development) Minister has taken positive action," he added.

[Montaigne]

Can anyone advise how near is near by defination in general? Within 100m? 300m? 500m? 1km?

[fiat500]

Can anyone advise how near is near by defination in general? Within 100m? 300m? 500m? 1km?

nothing more than 200m to the station..
eg: queens, astoria park, trumps, modena, icon, citylights, metz, kovan melody, metropolitan etc...
above are those which u can safely say its near mrt..the mrt station is practically in front of u when u step out of your condo. .

[flagship74]

nothing more than 200m to the station..
eg: queens, astoria park, trumps, modena, icon, citylights, metz, kovan melody, metropolitan etc...
above are those which u can safely say its near mrt..the mrt station is practically in front of u when u step out of your condo. .

To me the definition of near is literally you could hit the mrt driver's head by throwing a small stone.

[rattydrama]

I think within 500m still can attract potential buyer. I believed there are still buyers waiting for the price to drop.

[evergreen]

Within 10 min's walk. That is the common definition.

[propertyinvestor]

Within 10 min's walk. That is the common definition.

I think within 5-8 mins walk (less than 500m) will be ideal. Can also command a higher rental.

[ysyap]

Time to MRT is typically not a good guage. Some walk fast, others slower and still others even slower. I suppose anywhere less than 400m is near.

[zxcvbnm]

I think should be less than 200m

[kingkong1984]

Near means either below ur unit or beside, covered walk no longer than 5 minute or 100 meter.

More than that is called quite near, up to 500 meters.. Anything more, not really near.

[evergreen]

Near means either below ur unit or beside, covered walk no longer than 5 minute or 100 meter.

More than that is called quite near, up to 500 meters.. Anything more, not really near.

It takes about 6 mins to walk at moderate pace (slower than brisk walk butfaster than a stroll) one round of a 400m stadium track. 100m doesnt take 5 min For normal adult human being

[kingkong1984]

It takes about 6 mins to walk at moderate pace (slower than brisk walk butfaster than a stroll) one round of a 400m stadium track. 100m doesnt take 5 min For normal adult human being

Crowded in mrt station lah.... Raffles city to mrt entrance takes about that If u r staying at the hotel. Just an illustration

[evergreen]

Ic

[land118]

This "near MRT" has been misused by developers on their projects in recent times.., many times they put near MRT, it may not be so near. If developers say, less than 5mins to MRT, then u can be sure it is more accurate..., probably within 400m..., otherwise if they use near MRT, it could be as far as 800m away from MRT...

[evergreen]

Sometimes they say 5 mins to mrt but they purposely omit the word "drive"

[howgozit]

It takes about 6 mins to walk at moderate pace (slower than brisk walk butfaster than a stroll) one round of a 400m stadium track. 100m doesnt take 5 min For normal adult human being

Hmmm... good illustration

[Armstrong]

nothing more than 200m to the station..
eg: queens, astoria park, trumps, modena, icon, citylights, metz, kovan melody, metropolitan etc...
above are those which u can safely say its near mrt..the mrt station is practically in front of u when u step out of your condo. .

There are somemore, like NIN Residence and Woodsville 28, which are around 50m away from mrt.

[land118]

There are somemore, like NIN Residence and Woodsville 28, which are around 50m away from mrt.

Chuan Park condo and GoldenHill Park condo..

Also check out this link:

http://www.singaporeexpats.com/housi...s-near-MRT.htm

[Armstrong]

There are somemore, like NIN Residence and Woodsville 28, which are around 50m away from mrt.

one more, Kovan residence also within 50m away.

[hyenergix]

I will never pay so much to stay so near to MRT, because the savings can be used to buy a car to free up my travelling time. At the end of the day, most likely you still need a connecting bus, not to mention the hassle of squeezing among the sweating bodies in the bus or MRT.

[ysyap]

There are actually so many PCs near MRT or within 100m, not to mention those that are sitting on the MRT entrances like Compass Height!

[ecimbew]

Listing

http://www.singaporeexpats.com/housi...s-near-MRT.htm

[fclim]

This was the forecast early this year. Can believe him?

Home prices may fall this year: Leng Beng
http://www.businesstimes.com.sg/sub/...27771,00.html?

Published February 25, 2011

Home prices may fall this year: Leng Beng

He sees 3-5% dip in private home prices, says sales are down

By UMA SHANKARI


(SINGAPORE) City Developments, Singapore's second- largest property developer by market capitalisation, expects private home prices to fall 3-5 per cent this year on account of the chill from recent government cooling measures.

Home prices may decline after hitting a new record in 2010, executive chairman Kwek Leng Beng said yesterday. He also said that sales volumes have already fallen.

But prices are unlikely to plunge as there is still strong demand for homes in Singapore from overseas buyers, Mr Kwek said.

In addition to the traditional market of Indonesian and Chinese buyers, more money from the Middle East is flowing into Singapore in the wake of the unrest in the region, he said.

Mr Kwek was speaking at CityDev's results announcement. The group's Q4 2010 net profit climbed 41 per cent year-on-year to $249.2 million

'Residential volumes have started to go down somewhat, but prices are still not down yet,' he said. 'Usually it's the volume that is the precursor to prices going up or down.'

Unless there is a spike in demand from overseas buyers, 'prices will go down 3 to 5 per cent', Mr Kwek said. He also warned that the government may impose more curbs if the market 'improves a lot' and prices don't fall.

Analysts have similarly said that further policy risk remains a persistent overhang, and that residential prices could fall by 5-10 per cent in 2011.

In a Feb 23 report, UBS Investment Research analyst Adrian Chua said that further policy measures cannot be ruled out if the market regains its exuberance. Future measures will focus on the initial purchase stage by 'raising the level of equity required upfront', he said.

Meanwhile, CityDev said yesterday it will buy Dubai World's entire one-third stake in the South Beach project for $155 million.

CityDev, Dubai World and US-based Elad Group teamed up to buy the 99-year leasehold landmark Beach Road site opposite Raffles Hotel from the state for $1.69 billion in 2007. Each of the partners has an equal stake in the consortium developing the project.

The group also confirmed that it will boost its stake in the consortium developing the South Beach project, following a report in The Business Times yesterday that the company has exercised its right of first refusal to acquire Dubai World's stake in the project. The move comes after Dubai World unit Istithmar Beach Road informed City- Dev that it is looking to sell its entire stake in the consortium developing the project. CityDev then exercised its right to acquire the Istithmar shares and has entered into a conditional sale and purchase agreement to acquire the shares for $155 million. The two parties have started the process for the fulfilment of the conditions precedent.

'The company will make a further announcement upon completion of the proposed acquisition following satisfaction of all conditions precedent,' CityDev said in a statement.

Mr Kwek said CityDev would eventually like to own more than 50 per cent of the project - although the company remains open to welcoming new investors.

CityDev plans to market 580 homes in four projects in the first half of 2011.

The group's home sales rose 13 per cent to $2.1 billion in 2010, when it sold 1,559 homes. In 2009, CityDev sold 1,508 homes worth $1.9 billion in total.

Looking ahead, CityDev is still bullish about the high-end and luxury market segments. It noted in its results announcement that the high-end residential segment 'could see increased activity as current prices are still below the previous peak'.

Backing up this assertion, the group will launch two high-end projects in H1 2011 - the joint venture project with Wing Tai at the former Anderson 18 site (now called Jean Nouvel Residences), and another project at Buckley Road.

[Geylang OKT]

Usually, properties within a 500m radius of an MRT qualify for a 15%-20% premium.

[devilplate]

I will never pay so much to stay so near to MRT, because the savings can be used to buy a car to free up my travelling time. At the end of the day, most likely you still need a connecting bus, not to mention the hassle of squeezing among the sweating bodies in the bus or MRT.

Depending how much u save for buying a cheaper further away condo lor....car so ex now and running cost is damn high....after 10yrs, car only worth scrap value whereas the condo near mrt will definitely still maintain the premium

Mrt still gd to have even u own a car.....unles u wana become a part time chauffer for ur famly..hehe

[hyenergix]

Depending how much u save for buying a cheaper further away condo lor....car so ex now and running cost is damn high....after 10yrs, car only worth scrap value whereas the condo near mrt will definitely still maintain the premium

Mrt still gd to have even u own a car.....unles u wana become a part time chauffer for ur famly..hehe

To pay extra 10-20% premium to be within 100m radius is too much for me. Anyway most of the condos in this range are 99LH, so I'm not really interested.

[hyenergix]

This was the forecast early this year. Can believe him?

Home prices may fall this year: Leng Beng
http://www.businesstimes.com.sg/sub/...27771,00.html?

Published February 25, 2011

Home prices may fall this year: Leng Beng

He sees 3-5% dip in private home prices, says sales are down

By UMA SHANKARI


(SINGAPORE) City Developments, Singapore's second- largest property developer by market capitalisation, expects private home prices to fall 3-5 per cent this year on account of the chill from recent government cooling measures.

Home prices may decline after hitting a new record in 2010, executive chairman Kwek Leng Beng said yesterday. He also said that sales volumes have already fallen.

But prices are unlikely to plunge as there is still strong demand for homes in Singapore from overseas buyers, Mr Kwek said.

In addition to the traditional market of Indonesian and Chinese buyers, more money from the Middle East is flowing into Singapore in the wake of the unrest in the region, he said.

Mr Kwek was speaking at CityDev's results announcement. The group's Q4 2010 net profit climbed 41 per cent year-on-year to $249.2 million

'Residential volumes have started to go down somewhat, but prices are still not down yet,' he said. 'Usually it's the volume that is the precursor to prices going up or down.'

Unless there is a spike in demand from overseas buyers, 'prices will go down 3 to 5 per cent', Mr Kwek said. He also warned that the government may impose more curbs if the market 'improves a lot' and prices don't fall.

Analysts have similarly said that further policy risk remains a persistent overhang, and that residential prices could fall by 5-10 per cent in 2011.

In a Feb 23 report, UBS Investment Research analyst Adrian Chua said that further policy measures cannot be ruled out if the market regains its exuberance. Future measures will focus on the initial purchase stage by 'raising the level of equity required upfront', he said.

Meanwhile, CityDev said yesterday it will buy Dubai World's entire one-third stake in the South Beach project for $155 million.

CityDev, Dubai World and US-based Elad Group teamed up to buy the 99-year leasehold landmark Beach Road site opposite Raffles Hotel from the state for $1.69 billion in 2007. Each of the partners has an equal stake in the consortium developing the project.

The group also confirmed that it will boost its stake in the consortium developing the South Beach project, following a report in The Business Times yesterday that the company has exercised its right of first refusal to acquire Dubai World's stake in the project. The move comes after Dubai World unit Istithmar Beach Road informed City- Dev that it is looking to sell its entire stake in the consortium developing the project. CityDev then exercised its right to acquire the Istithmar shares and has entered into a conditional sale and purchase agreement to acquire the shares for $155 million. The two parties have started the process for the fulfilment of the conditions precedent.

'The company will make a further announcement upon completion of the proposed acquisition following satisfaction of all conditions precedent,' CityDev said in a statement.

Mr Kwek said CityDev would eventually like to own more than 50 per cent of the project - although the company remains open to welcoming new investors.

CityDev plans to market 580 homes in four projects in the first half of 2011.

The group's home sales rose 13 per cent to $2.1 billion in 2010, when it sold 1,559 homes. In 2009, CityDev sold 1,508 homes worth $1.9 billion in total.

Looking ahead, CityDev is still bullish about the high-end and luxury market segments. It noted in its results announcement that the high-end residential segment 'could see increased activity as current prices are still below the previous peak'.

Backing up this assertion, the group will launch two high-end projects in H1 2011 - the joint venture project with Wing Tai at the former Anderson 18 site (now called Jean Nouvel Residences), and another project at Buckley Road.

He is forecasting the worst case scenario. In the light of his latest remarks, you are still safe to buy!

[Laguna]

well, it also depends on whether the track is underground or above ground.
The noise can kill.

[ysyap]

Usually, properties within a 500m radius of an MRT qualify for a 15%-20% premium.

That is what developers and sellers think but not all buyers will agree, at least not until they become sellers themselves. As a buyer, I would suppose only 200m radius from MRT qualifies for a 20% premium whereas distances between 200m to 500m probably only qualify for a 10% premium, not considering if these units are beside other undesirable areas like expressways, etc.

[DC33_2008]

What if they are 999LH/FH, less than 100m away and in CBD? Will you pay the 10-20 premium?

To pay extra 10-20% premium to be within 100m radius is too much for me. Anyway most of the condos in this range are 99LH, so I'm not really interested.