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Sales of landed homes picking up

aboutsingaporeproperty — Sun, 25 Jul 2010 03:57:00 +0000

Surge in demand sees buyers paying higher prices, but rate of increase likely to slow

More buyers are picking up landed homes and paying higher prices amid the strong economic recovery, said a recent Savills Singapore study.

It found that 2,198 caveats were lodged for landed houses between January and June this year, which is more than 57 per cent of the 3,832 caveats lodged last year.

And the total value of these transactions reached about $7.2 billion, which is about 75 per cent of the value of what was sold last year, it said.

Savills noted that more homes priced $5 million and above were traded this year.

‘The surge in demand could be that purchasers are seeing better value in landed homes, as condominium prices have soared beyond peak levels,’ said its prestige homes and investment director Steven Ming.

Also, compared with prices of their non-landed counterparts, prices of landed homes were relatively stable during the recent economic downturn, he said.

Median landed home prices have increased by 6.2 per cent from $745 per sq ft (psf) in the first quarter to $791 psf in the second, according to data from Savills.

The rise over the past year has been 31.4 per cent, it said.

Last Friday, the Urban Redevelopment Authority released data showing that landed home prices are still climbing, but at a slower rate of 6.2 per cent in the second quarter this year, compared with 8.3 per cent in the first.

Prices of detached houses saw the highest rise of 6.8 per cent among the landed housing types, while terrace house prices rose by 5.6 per cent.

Two to three years ago, buyers could easily find a typical freehold landed home of around 1,600 to 1,800 sq ft for about $1.3 million to $1.5 million, said Colliers International’s deputy managing director (agency and business services) and auctioneer, Ms Grace Ng.

Today, they must be prepared to pay a higher amount of $1.6 million to $1.8 million, she said.

However, there are still bargains to be found in the resale market if ‘you spend time doing your homework’, she said.

These are likely to be run-down houses that need a lot of work.

Or they could be old houses that were bought a few decades ago at relatively low prices, such that the owners may be happy to sell around today’s valuation price instead of above it, she said.

Property consultants say the attraction of landed homes lies in the scarcity factor, as there is limited supply.

Even the recent floods won’t affect landed home values – that is, in the long term.

‘Floods won’t affect values in the long term, but in the short term, buyers may turn away,’ said Ms Ng.

For instance, in the Bukit Timah area, where only the main roads were flooded, homes remain attractive because of their proximity to schools and the city, she said.

Unless the floods become a common occurrence, they won’t weigh down on prices, she added.

Landed home prices are likely to continue rising, though the rate of increase could slow further as price resistance has set in, said Ms Ng.

Savills senior manager of research and consultancy Christine Sun believes that more buyers are likely to enter the market as the economy continues to improve.

‘Landed home prices will still increase, but unlikely at the 10 per cent rate that we saw around the middle of last year,’ she said.

‘We believe that price rises will hover around 5 per cent to 6 per cent per quarter for the rest of the year.’

Source: Sunday Times, 25 Jul 2010

Private home sales slower, but prices up

aboutsingaporeproperty — Sat, 24 Jul 2010 04:45:00 +0000

Prices hit new high, could rise further with economic recovery

SALES of private homes slowed towards the end of the second quarter but prices still kept heading north into record territory.

Prices rose 5.3 per cent in the second quarter – above the preliminary estimate of 5.2 per cent and not far from the first quarter rise of 5.6 per cent.

According to Urban Redevelopment Authority (URA) data released yesterday, prices are up 11.6 per cent since January and are expected to continue climbing although the pace may ease, said analysts.

Prices are now at record levels, eclipsing the 1996 peak, after shrugging off a dip in sales that began in May when Europe’s debt crisis rocked global stock markets, observers said.

Rents were also rocketing – up 5.9 per cent in the second quarter to take the half-year rise to 10.9 per cent. Rents fell by 14.6 per cent last year.

‘The continuing recovery in the economy facilitated the increased hiring of expatriate staff, which in turn, drove the rental market,’ said Mr Li Hiaw Ho, CBRE Research’s executive director.

Cushman and Wakefield managing director Donald Han added: ‘In the second half of last year, prices went up more than 20 per cent but rents fell. So, there was some fear of a bubble forming.

‘But prices are now moving in line with rent rises. As long as rents go up, the price rise should be supported.’

Non-landed home prices rose the most in suburban areas, up 5.7 per cent, from a 4.3 per cent increase in the first quarter.

City-fringe home prices were up 4.6 per cent while city-centre ones rose 5.4 per cent.

Prices of landed homes also continued to surge, climbing 6.2 per cent in the second quarter after jumping 8.3 per cent in the first quarter.

Luxury homes are the only sector yet to reach record heights, experts noted.

Yesterday’s URA data also showed that 4,033 new homes were sold in the second quarter, down about 8 per cent from the first.

As at the second quarter, there were 61,831 private residential units in the pipeline. Of these, 32,630 units were still unsold. The URA said: ‘This number is equivalent to about three years of supply based on the average take-up of about 11,300 units per year over the last three years.’

While some buyers hesitate, others have been snapping up property.

Copywriter Daryl Lee, 34, said: ‘The last thing I want is to lock my cash up in a mortgage when all people are doing is chasing higher prices to pay higher asking prices.’

Another potential buyer Alex Wee, 37, said: ‘On the one hand, things are pricey. But on the other hand, we’re afraid that if we don’t buy, we will miss the boat.’

Accounts executive Kris Lau, 33, who bought a small investment unit at a newly released project, 368 Thomson, after selling her HDB flat, said: ‘It’s a good time to cash out and upgrade.’

Jones Lang LaSalle’s head of residential project sales, Mr David Neubronner, told The Straits Times: ‘Prices… should take a breather. But given the current backdrop where our economic recovery is generating wealth, they are likely to continue to rise this year.

‘Quite a lot of people are parking their money in property for the long term. In the worst-case scenario, I think prices may stay flat.’

Ngee Ann Polytechnic real estate lecturer Nicholas Mak believes private home prices will continue to rise this year and possibly into next year but at less than 5 per cent a quarter as sales slow.

The level of speculation now is within manageable levels, he felt.

URA data shows that sub-sales fell to 723 units in the second quarter, from 996 in the first.

Mr Li said the surprisingly strong economic growth in the second quarter will help keep market sentiment positive.

‘However, as the Government is also anticipating a slowdown in the growth momentum for the rest of the year, the residential market is likely to move at a more moderate pace,’ he said.

Sales of new homes may still reach 14,000 units this year – below last year’s 14,688 units while home prices may rise by 12 to 15 per cent, he said.

Mr Mak is looking at a price rise of 16 to 21 per cent this year.

Meanwhile, office rents rose 1.1 per cent in the second quarter compared with 0.4 per cent in the first quarter.

Rents for shops and industrial properties rose by 0.5 per cent and 1.3 per cent respectively in the second quarter.

Source: Straits Times, 24 Jul 2010

Broad-based growth in Q2 property prices

aboutsingaporeproperty — Sat, 24 Jul 2010 03:43:00 +0000

Momentum of recovery in private residential rents also picked up

PRIVATE home prices generally rose at a slightly slower pace in Q2 than they did in Q1, but latest official numbers show a broad-based growth in property prices – with stronger quarter-on-quarter gains for office, shop and industrial properties, as well as HDB resale flat prices in Q2 than in the first quarter.

The momentum of recovery in private residential rents also picked up in the second quarter, supported by an acceleration in hiring of expats as Singapore’s economy continues to expand.

‘Sentiment among developers and market watchers probably moderated from the end of first quarter as a result of the eurozone’s economic problems, but the recent spectacular official GDP growth forecast for Singapore has probably helped to restore some confidence,’ said Real Estate Developers Association of Singapore CEO Steven Choo.

The Urban Redevelopment Authority’s (URA) benchmark overall price index for private homes rose 5.3 per cent in the second quarter over the preceding quarter, close to the 5.6 per cent per cent hike in Q1.

The price index for office space increased 4.6 per cent quarter on quarter in Q2, a bigger gain than the 1.8 per cent quarter-on-quarter rise in Q1.

Likewise, the shop price index went up 3.9 per cent in Q2, following a 1.8 per cent pick-up in the first three months. URA’s flatted factory and warehouse price indices rose 5.4 and 9.4 per cent in Q2. In Q1, each of these increased 1.5 per cent.

In the private housing market, prices of detached houses rose 6.8 per cent in Q2, slower than the 9.6 per cent increase in Q1. Semi-D and terrace houses appreciated 6 per cent and 5.6 per cent respectively in Q2 – compared with increases of 7.5 and 7.4 per cent in the first three months.

Non-landed home prices in Core Central Region (which includes the prime districts, Marina Bay and Sentosa Cove) climbed 5.4 per cent in Q2, higher than the 4.4 per cent growth in Q1. Likewise, the price index for Outside Central Region (where suburban condos are located) rose 5.7 per cent in Q2 after increasing 4.3 per cent in Q1.

However, in Rest of Central Region the pace of price gain slowed from 7.9 per cent in the first quarter to 4.6 per cent in Q2.

In the primary market, developers sold a total of 4,033 private homes in Q2, down 7.9 per cent from Q1. In the secondary market, strong buying momentum was also seen in the resale market, with 4,682 private homes changing hands in Q2, although this was 5.6 per cent lower than the first three months of the year. However, subsale volumes eased 27.4 per cent, from 996 deals in Q1 to 723 in Q2.

‘Resales were strong in Q2 because prices are more reasonable for older, completed properties than new project launches. On the other hand, subsales (which are secondary-market deals involving projects that have yet to receive Certificate of Statutory Completion) come in waves. Those who bought homes from developers in the past few months are probably waiting for prices to rise further before they offload their units,’ suggests a market watcher.

In the leasing market, URA’s All Residential rental index rose 5.9 per cent in Q2 over the preceding quarter, compared with a 4.7 per cent quarter-on-quarter gain in Q1. The index has appreciated 10.9 per cent since end-2009.

Rents accelerated for both landed and non-landed private homes. Terrace houses led the landed segment, with rents rising 6.6 per cent in Q2, followed by semi-detached houses (up 5.6 per cent) and detached (up 4.6 per cent). For non-landed homes, rents in Core Central Region appreciated the most, by 6.4 per cent, followed by Outside Central Region (up 6.1 per cent) and Rest of Central Region (5.1 per cent).

However, the latest All Residential rental index is about 11.1 per cent below its peak in Q2 2008.

Jones Lang LaSalles’ head of residential Jacqueline Wong said the latest official figures confirm feedback from the ground. Monthly rentals of four-bedroom apartments in high-end developments such as Grange Residences, Draycott 8 and Ardmore Park are hitting $16,000-$18,000 on average – an improvement from $14,000-$15,000 in the second half of last year.

‘But we still haven’t achieved the peak levels of $18,000-$22,000 seen in the late 2007 to mid-2008 period,’ Ms Wong added. ‘We’re seeing rehiring of expats again but housing allowances are not as generous as before.’

Ms Wong is predicting flattish rents until the end of this year, citing new competition with the impending completion of The Orchard Residences and The Marq on Paterson Hill.

URA numbers show 4,379 private homes received Temporary Occupation Permit (TOP) in Q2, compared with 1,407 units in Q1. The surge in new completions pushed up the islandwide vacancy rate for private homes to 5.4 per cent at end-Q2, from 4.6 per cent at end-Q1. But this could ease again as owners or tenants move into the new homes.

Major residential projects completed in April-June 2010 include One Amber, Marina Bay Residences, Dakota Residences and The Arte.

With a further 4,958 units expected to receive TOP by year end, the full-year tally will be 10,744, slightly above last year’s 10,488 units

Source: Business Times, 24 Jul 2010

Prestige bungalows soar in price

aboutsingaporeproperty — Tue, 20 Jul 2010 15:55:00 +0000

Good class bungalow sales in first half pass $1b mark, and demand unlikely to flag: Report

THE priciest homes just keep getting pricier, with the values of upmarket, prime-area bungalows rocketing this year, and sales totalling more than $1 billion in the first six months.

And just to underline the boom in what are called ‘good class bungalows’, a Nassim Road house sold in April for $43.5 million, that is $1,800 psf and just shy of the record $1,899 psf set in 2007 for a plot along the same road, according to a Savills Singapore report.

The most expensive bungalow sold this year in terms of overall price was a sprawling Leedon Park plot that went last month for a whopping $59.4 million, or $1,419 psf.

Good class bungalows tend to be big and exclusive, and are arguably Singapore’s most coveted landed homes.

They typically sit on plots of at least 1,400 sq m, or 15,070 sq ft, and can be found in 39 prime gazetted areas such as Nassim Road.

In the first half of this year, sales of good class bungalows reached about $1.12 billion, which is about 81 per cent of the value done last year, said Savills.

There were 54 deals done in the first six months, compared with 24 in the same period last year, it said.

Prices have continued edging higher on the revived demand from well-heeled buyers, added Savills.

The average price of good class bungalows rose from $928 psf in the first quarter to $1,082 psf in the second and is now 36 per cent higher than a year ago.

‘This year we are seeing more demand from ultra-rich, new citizens and PRs in the market, which could possibly have resulted in the higher volume and prices,’ said the firm’s director of prestige homes and investment, Mr Steven Ming.

An agent who declined to be named added: ‘Some new citizens from China are still looking for good class bungalows.’

He said the market has quietened down a bit recently as the gap between buyers’ and sellers’ price expectations widens.

CB Richard Ellis director (luxury homes) Douglas Wong said: ‘Good class bungalow prices have continued to rise since 2007 and through the global financial crisis. Owners’ expectations are still high due to the limited supply.’

Some sellers have been asking for higher prices after hearing talk of a Cluny Road bungalow achieving a record price of slightly over $2,000 psf, agents said.

Buyers may be sitting on the sidelines but they are likely to come back to market soon when they realise that prices are not going to fall, Mr Wong said.

The managing director of RealStar Premier Property, Mr William Wong, said he has already seen some local investors returning to the good class bungalow market recently.

But foreign buyers are few and far between. They need special permission and must be permanent residents to own landed property.

Foreigners who are not permanent residents can buy landed homes in Sentosa Cove, subject to government approval.

In recent years, the typically smaller landed homes in the 99-year leasehold gated residential enclave have also seen exceptional prices.

Average prices of Sentosa Cove bungalows rose 55 per cent to $1,959 psf in the second quarter over the same period a year ago, said Savills.

In the first half, there were 35 caveats lodged for bungalows in Sentosa Cove compared with 36 for all of last year, it said.

Just over half of this year’s bungalow caveats were lodged by Singaporeans.

China accounted for 10 deals, the largest of the foreign buying contingent.

But Mr Ming said that good class bungalow prices are looking more attractive than the prices of leasehold Sentosa Cove bungalows.

He added that good class bungalow prices may rise by a further 5 to 10 per cent this year, given the more robust economic recovery and the fact that the buyer base has expanded.

Source: Straits Times, 20 Jul 2010

Room for growth in high-end market

aboutsingaporeproperty — Sun, 18 Jul 2010 15:04:00 +0000

Trends in other cities show demand for luxury apartments in S’pore may grow yet

Singapore has long been seen as a safe investment haven – and foreigners are responding by snapping up property across the island.

About 23,000 non-landed private homes have been bought by foreigners since 2007 – of which about 35 per cent are high-end homes in districts 1, 2, 4, 9, 10 and 11 – based on the Urban Redevelopment Authority’s (URA) record of caveats lodged.

Yet, the high-end apartments sector still has room for growth if trends in other cities are anything to go by.

Data from Savills shows that the average price of high-end apartments was $2,154 per sq ft (psf) in the second quarter, while that of super luxury private homes was $3,055 psf.

Super luxury homes – a subset of high-end homes – are defined as developments that achieved an average of $2,500 psf in the fourth quarter of 2006.

In Hong Kong, however, prices for high-end residences in the same quarter hit HK$14,520 (S$2,570) psf, 20 per cent higher than those here. As common spaces like corridors are taken into account in computing unit prices in Hong Kong, the actual price disparity could be even greater.

In fact, prices for high-end apartments in Hong Kong rose 47 per cent last year, raising concerns about an already overheated market. On the other hand, high-end values here went up by only 3.9 per cent last year.

Moreover, the most expensive private apartment in Hong Kong is a 6,830 sq ft unit at The Albany – which sold for HK$49,488 psf, or HK$338 million in total, this year. This is about 58 per cent more than Singapore’s priciest apartment, a 5,048 sq ft home at Orchard Residences, which sold for $28.3 million, or $5,600 psf, in 2007.

In addition, Sydney apartment prices are about 28 per cent up on Singapore’s while London’s values are an eye-watering 41 per cent higher.

China, however, is a mixed story. While prices in its two major cities are lower, they shot up 32 per cent in Shanghai last year and 15 per cent in Beijing – and are both at record levels, marginalising any potential short-term capital gains.

Furthermore, the high-end market in Singapore is the only sector where prices are still below previous peaks. Prices of high-end apartments are 11 per cent below record levels set in the fourth quarter of 2007 while super luxury prices are 17 per cent cheaper.

In contrast, mass market prices in May were already 15 per cent over previous peaks with mid-tier apartments a more modest 5 per cent above. As positive economic prospects for Singapore are likely to continue into the second half of this year, it is possible that prices of high-end apartments could reach previous peak levels by early next year.

Compared to the full year of 2009, the number of apartments sold above $2,500 psf has already more than trebled over the last six months, with some even falling in the $3,500 to $4,000 psf range.

With rising anxiety over bubble risks and fears of more tightening measures that could derail prices, many East Asian investors may shift their funds to Singapore.

The government imposed 11 cooling measures in China earlier this year, helping to send new home sales plummeting 60 to 70 per cent in Beijing, Shanghai and Shenzhen in May alone.

As a result, more foreign buyers, especially mainland Chinese, have flocked to Singapore, at times buying with full cash payments.

They have displaced Malaysians this year as the No. 2 buyers of super luxury homes priced $5 million and above.

The growing number of high net worth individuals and millionaire Singaporeans could also see an increasing demand for luxury homes.

However, prime redevelopment sites for sale are lacking. The average take-up rate of high-end homes between 2005 and last year is 3,500 units per year, sitting comfortably above the average of 2,500 units being constructed yearly from this year to 2014.

Therefore, the supply of luxury homes is expected to be limited in the coming years and this imbalance should continue to sustain prices.

Luxury apartment prices are expected to rise by 5 to 8 per cent in the second half of this year.

Optimism surrounding the integrated resorts and robust GDP growth – and the increased expatriate employment it brings – should keep drawing affluent foreign buyers here.

This should help sustain demand for high-end homes even as an approximate 1,800 luxury apartments are expected to be launched in the second half of this year.

The writer is the senior manager, research & consultancy of Savills Singapore

Source: Sunday Times, 18 Jul 2010

The appeal of designer condos

aboutsingaporeproperty — Sun, 18 Jul 2010 13:06:00 +0000

More developers are engaging world-class architects as buyers get more sophisticated

It is hard to miss the striking high-rise residential projects in central Singapore, some designed by internationally renowned architects.

In recent years, these internationally acclaimed names include German Ole Scheeren – who was behind The Interlace in the Alexandra Road area – and American Daniel Libeskind, who designed Reflections at Keppel Bay.

Equally famed Zaha Hadid is behind a huge condominium project on the former Farrer Court site, which has yet to be launched for sale.

Developers say it is crucial to differentiate their products in a challenging market where buyers are becoming more discerning.

Far East Organization, Singapore’s largest private developer, launched an ultra luxury brand called ‘Inessence’ last month.

Apart from allowing it to tap further into the rapidly growing wealth in the Asia-Pacific region, the developer said its move is a testament to Singapore’s strong foundations and transformation into a vibrant global city.

Mr Augustine Tan, chief executive officer, Singapore residential, Keppel Land, said: ‘With increasing globalisation, home buyers have also becoming increasingly sophisticated, so much so that owning a home is beyond the brick and mortar but involves the considerations of prestige, lifestyle and other value propositions associated with the development, such as designer architects.’

Property experts say that condos designed by world-renowned architects have a particular appeal to brand-conscious buyers.

Furthermore, these architects are believed to be able to design condos with superior layout and lifestyle concepts – for both the individual apartments and the overall development, said Colliers International’s director for research and advisory Tay Huey Ying.

Many of these designer condos are then able to command a pre- mium.

‘It’s one of the marketing tools for developers to help them achieve their price target,’ said ERA Asia-Pacific associate director Eugene Lim.

‘If I put a brand-name architect to a high-end project, I can push the price slightly higher. The pre- mium is possible because of the product differentiation.

‘People have to associate what they are paying for with what they are getting. It’s about selling an image, a lifestyle and status.’

The price premium, said Ms Tay, is, however, not guaranteed.

‘More often, they are differentiators that can help to move sales, particularly in a competitive market.’

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said buyers will be willing to pay a premium only if the property comes with other attributes – such as a desirable location and a sensible layout.

And developers do change the designs to fit the market if needed. Far East Organization, for instance, did away with an eye-catching design by Mr Scheeren for Scotts Tower as the market had changed significantly.

It had wanted to launch the project – which had only 67 large units – back in late 2007 but the high-end market had started to show signs of slowing.

It has since replaced the original design, featuring four suspended towers, with a creation by Mr Ben van Berkel of UNStudio.

Singapore can expect to see more designer condos, but they would not be flooding the market any time soon. They will remain in a class of their own.

‘Not all developers can afford to pay for the services of a world-renowned architect. Moreover, such architects may also be selective in the projects that they want to be a part of,’ said Ms Tay.

‘As such, it is unlikely that designer condos will be the norm one day, although such condos could grow in numbers, particularly in the higher-end segments.’

Source: Sunday Times, 18 Jul 2010

Brisk sales continue at new launches

aboutsingaporeproperty — Sun, 18 Jul 2010 13:05:00 +0000

Sales picking up after quiet June with World Cup, school holidays

SALES have stayed fairly hot at a new condominium in Bukit Timah with 114 flats in the 172-unit estate now sold in just over a week, including 24 of the 30 pricey penthouses.

Ten apartments were snapped up at the official launch of the Terrene yesterday following the 104 that have been sold since a private preview started on July 8, UOL Group said.

The 999-year leasehold condo in Jalan Jurong Kechil is priced at an average of $1,250 per sq ft (psf) for a typical unit, with a one-bedroom flat starting from $719,000.

The penthouses are priced from $1.7 million for a three-bedroom unit to $2.79 million for a five-bedder.

Terrene is a 50-50 joint venture between UOL and La Salle Asia Investment Management.

The newly released 368 Thomson has also done well.

City Developments (CDL) said yesterday that it has sold more than 90 per cent of the 157-unit freehold condo in Thomson Road since it started a private preview on July 8.

The Straits Times understands that 144 units have been sold, leaving a balance of 13 units.

Last Friday, CDL announced that it had sold 96 out of 120 launched units. Prices were about $1,350 psf, or from $918,000 for a one-plus-study unit to $4.4 million for a five-bedroom penthouse.

Since then, the developer has released more units with prices 2 to 3 per cent higher.

The market for new private homes quietened last month with buyers distracted by the euro zone debt crisis, school holidays and the World Cup. A certain amount of price resistance had also set in.

But this month will be a slightly busier month, say property consultants.

Hong Leong Holdings said in a statement yesterday that it will launch the 99-year leasehold The Scala at the end of this month.

The Scala, which is in Serangoon Avenue 3 and near the Circle Line’s Lorong Chuan MRT station, will have 468 units. It has one- to four-bedroom units ranging from 474 sq ft to 2,142 sq ft.

Hong Leong said the condo will have seven pavilions, each designed to give residents a different interactive experience. One will be an Italian pavilion with a wood-fired oven for residents to make their own pizzas.

More property launches can certainly be expected from September, after the traditionally quiet Hungry Ghost Month, experts say.

CDL said its 642-unit, joint venture condo in Pasir Ris will be released in the third quarter.

Source: Sunday Times, 18 Jul 2010

New ‘hot’ residential districts coming up

aboutsingaporeproperty — Sun, 18 Jul 2010 13:02:00 +0000

Non-traditional prime areas have emerged as the property boom spreads to the suburbs

For years, Districts 9, 10 and 11 – covering Orchard, Holland, Newton and Bukit Timah – have been the must-have residential areas in Singapore.

But as the recent property boom spreads to the suburbs, a number of newly popular districts have emerged outside these traditional prime areas.

Developers with a keen eye snapped up land around city-fringe locations and suburban MRT stations, and have been launching projects in these areas over the last few months to great demand.

Some of these new sizzling spots may come as no surprise. District 2, for instance, comprises mainly the Tanjong Pagar area around the Central Business District, which is evolving into an inner-city residential hub. Recent launches such as City Developments’ 76 Shenton and Far East Organization’s Altez have been well-received.

Slightly farther from the city is District 14, where Waterbank @ Dakota and Casa Aerata have been sell-outs, and Dakota Residences is 95 per cent sold.

Property consultants say the opening of the two integrated resorts this year has boosted the popularity of these more centrally located areas.

Mr Joseph Tan, executive director for residential services at real estate consultancy CB Richard Ellis, said: ‘Not only do they attract people who bought for their own use, they also attract a good number of property investors with a view to future price appreciation or rental income.’

Ms Tay Huey Ying, director of research and advisory at Colliers International, explained: ‘District 2 has grown in popularity since 2006 and 2007 when the development of the two integrated resorts and Marina Bay Financial Centre popularised inner-city living.’

She added that homes there have remained popular since then, although sales have slowed, owing to their relatively high price tags, and especially with investors turning more cautious following the global financial crisis.

But there are also other ‘hot’ districts that may be less obvious, including District 5 in the West Coast and District 16 in Upper East Coast.

In District 5, recent launches such as Hundred Trees and The Vision were 95 per cent sold within three months, and Parc Imperial was 100 per cent sold, according to data from DTZ Debenham Tie Leung. Over in District 16, Optima @ Tanah Merah sold out in just three days.

These areas have drawn interest because of their proximity to current or future MRT stations, good local schools and international schools, said Mr Tan. Buyers of homes in the area are mostly locals – HDB upgraders and private homeowners – and also permanent residents settling down here.

‘These properties tend to be more affordably priced than those situated in the city or at the city fringe,’ he said.

Ms Chua Chor Hoon, head of South-east Asia research at DTZ Debenham Tie Leung, said in general, there are more ‘hot’ areas in Singapore now than in the past because of two main reasons: collective sales of estates in older areas and deliberate government policies to decentralise office hubs.

With more people, including expats, working outside the CBD, there is higher demand for rental homes – and hence more potential for property investors – in other parts of the island now, she said.

CBRE’s Mr Tan agreed: ‘With new initiatives to chart the progress of the country, future growth areas like Marina Bay, Jurong East, Kallang Riverside and Punggol Waterfront town are becoming more and more attractive because there is still room to encompass new ideas.’

It helps that the Government is constructing more MRT lines, consultants said. ‘The MRT network is reaching more areas of Singapore, making outlying places more accessible and desirable,’ said Ms Chua.

In the years to come, Ms Tay believes new emerging districts would include those with newly opened or soon-to-be-constructed MRT lines, as well as districts within growth areas designated by the Government.

These could include District 22 in Jurong and Boon Lay, which could benefit from the Government’s plan to develop the Jurong Lake District, and District 23 – Bukit Batok and Hillview – which would get a double boost from the construction of the MRT’s Downtown Line stage 2 as well as the spillover effects of the development of the Jurong Lake District.

Still, property consultants maintain that the traditional prime residential districts of 9, 10 and 11 will always retain their charm.

‘The exclusivity and prestige attached to certain addresses cannot be fully replicated in the new growth areas,’ concluded Mr Tan.

Source: Sunday Times, 18 Jul 2010

Brisk sales continue at new launches

aboutsingaporeproperty — Sat, 17 Jul 2010 15:06:00 +0000