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Thread: Condo deals in prime districts hit 6-year high

  1. #1
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    Default Condo deals in prime districts hit 6-year high

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    Published March 13, 2006


    Condo deals in prime districts hit 6-year high
    Foreign buyers now include Europeans, Americans, Australians, Mainland Chinese and Indians: study


    By KALPANA RASHIWALA

    (SINGAPORE) Total transactions of private apartments and condos in the traditional prime districts 9, 10 and 11 soared to a six-year high of 3,774 units last year, reflecting a 74 per cent jump from 2004, shows the latest caveats analysis by DTZ Debenham Tie Leung.


    In contrast, total caveats lodged for apartments and condos outside the prime districts rose a smaller 28 per cent last year to 9,114 deals.

    Says the firm's executive director Ong Choon Fah: 'This trend has been happening not just in Singapore but across Asia. In Singapore, we've seen that the high-end market has taken off, partly because this is the segment which has seen more launches and hence, new products.

    'And looking at the profile of foreign buyers, they're no longer just the traditional buyers from the immediate region like Indonesians, Malaysians and Hongkongers. The spread of foreign buyers is becoming more international, including Europeans, Americans and Australians, mainland Chinese and Indians.

    'And during a market upturn, it's usually the prime segment that takes off first. We're also seeing some Singaporeans cashing in on this by selling their residences outside the prime district and moving to a prime area,' she added.

    DTZ's analysis, which was based on caveats captured by the Urban Redevelopment Authority's Realis system, shows that last year's increase in prime district apartment and condo sales was seen in both the primary and secondary markets.





    In the primary market, developer sales in the prime districts rose 92 per cent last year to hit a 10-year high of 1,864 units. This surpassed the last peak of 1,689 units in 2002, when developers adopted competitive strategies to clear stock.

    DTZ attributed last year's sharp rise to several attractive launches by developers like 8 @ Mt Sophia, Parc Emily, Park Infinia at Wee Nam, and Watermark condo at Robertson Quay, which were last year's top-selling projects in the prime districts.

    'This was also partly due to increasing investor interest upon early signs of recovery in the property market, including 'specuvestors' who bought with the intention of disposing the properties when market conditions are favourable,' DTZ said.

    In the secondary or resale market, the number of apartments and condos which changed hands in the prime districts rose 60 per cent last year to 1,910 units. Part of the reason for the increase was continued interest in various relatively new completions like Amaryllis Ville.

    Belmond Green and Amaryllis Ville topped the sales charts for prime district developments in the resale market, with 41 and 32 units, respectively, changing hands.

    They were followed by The Arcadia (31 units), Valley Park (29 units) and The Tessarina (25 units). DTZ said another reason for the rise in prime district resale deals was the numerous collective sales in the prime districts last year.

  2. #2
    Observer.
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    Default RE: Prime London Property Prices At 30-Year Highs

    Quote Originally Posted by Reuters
    Reuters
    London, UK
    20 May 2007

    [B]Prime central London property prices are growing at their fastest in almost 30 years[/B] -- and at 3 times the rate of the wider British market, figures show.

    [COLOR="blue"]The value of the best properties in central London has risen by more than 33% in the 12 months to end-April[/COLOR], according to estate agent Knight Frank's prime property index.

    That is the fastest rate of growth since mid-1979 and means prices in central London are rising at three times the UK average.

    [COLOR="blue"]A property worth just 100,000 pounds in 1976 would now be worth more than 4.1 million[/COLOR], the index shows.

    Knight Frank said demand had been supported by growing numbers of overseas buyers and money spent on property by City bankers.

    Over the past year, Belgravia and Knightsbridge have seen the strongest market, with prices surging by more than 40%.

    Head of residential research Liam Bailey said: "London's traditional spring market rush starts earlier and earlier every year. For the past two years, the season has opened in December rather than March, and has run on well into May.

    "[COLOR="blue"]The early part of 2007 saw an incredibly active market, with price growth totalling nearly 11.9% in the first quarter[/COLOR]."

    He said, [B]even after 18 months of strong price appreciation, the pace of growth was yet to slow and, if anything, had quickened[/B].

    In the six months to end-April, monthly price growth averaged 2.8%, against 1.7% in the same period last year.

    "The strong performance of the top end of the market can be attributed, at least in part, to the continuing health of the City economy and the bonus season," said Bailey.

    "However, it is our experience that, whilst there have been growing numbers of deals completed by City workers, it is the [COLOR="blue"]influx of overseas buyers -- European, Russian, Indian and increasingly Middle Eastern[/COLOR] -- which is the key to the substantial price growth seen in many areas of central London."

    Knight Frank data shows that the supply of available property fell by more than 50% in the first quarter of 2007, compared to a 17% rise last year.

    Looking forward, Bailey believed stock shortages would continue to buoy the market.

    Higher transaction costs -- stamp duty, in particular -- mean people are moving less often, while the introduction of home information packs (HIPs) this summer is also likely to cause a drop in supply, he said.

    The controversial packs -- designed to making the home-buying process more efficient, cut the number of transactions that fall through and encourage homeowners to reduce energy consumption -- are due to come into force in England and Wales on 1 June, but have met fierce opposition.

    HIPs are expected to cost sellers around 500 and estate agents have been reporting a rush to complete deals ahead of their introduction.

    The Knight Frank prime central London residential index charts the value of property at the top end of the market: flats and penthouses with an average value of 2.5 million and houses valued at close to 5 million.

    Singapore has a lot more to catch up with London.
    The gap is just too huge!

  3. #3
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    Default Re: Prime London Property Prices At 30-Year Highs

    Quote Originally Posted by Observer.
    Singapore has a lot more to catch up with London.
    The gap is just too huge!
    We also need an influx of European, Russian, Indian and Middle Eastern buyers, beside the Indonesians, Malaysians, Australians, Britons and HongKongers.

  4. #4
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    Went to showroom 3 times....but did not buy....was very interested in stacks 01 and 02 2 bedders, but was over my budget.

  5. #5
    Junior

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    what happened to our good friend Mr Funny?

  6. #6
    I sell Cheese Pie

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    Quote Originally Posted by sh
    what happened to our good friend Mr Funny?
    He is now Mr Serious

  7. #7
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    how come u dug up this article from 17th august 2006? LOL.

    maybe back then Mr. Funny was only known as Admin.

    Quote Originally Posted by azeoprop
    Went to showroom 3 times....but did not buy....was very interested in stacks 01 and 02 2 bedders, but was over my budget.

  8. #8
    Junior

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    2006 article? HAHA. Nice try to talk up the market...

  9. #9
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    nah, bro azeo is not like that. besides, he's not even vested in CCR.

    but bro azeo, which project u talking about har?

    Quote Originally Posted by Wild Falcon
    2006 article? HAHA. Nice try to talk up the market...

  10. #10
    Exalted

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    i hf the feeling azeo posted wrongly....lol

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