Singapore Property Watch

Real Estate Investment in the East - Suites @ Guillemard

2009-10-13T23:20:00.003+08:00

Totalling 72 Freehold residential units mainly made up of 1 bedroom, 1+Study & 2 bedroom Penthouses. Less than 5 mins stroll to Paya Lebar MRT. Excellent Interior finishings and exterior facade. We call it “Suites@Guillemard”. Prices starts from manageable quantum of S$ 3XXK to S$ 5XXK.

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CYAN @ Keng Chin - new residential project by Far East

2009-10-09T12:49:00.000+08:00

Cyan at Keng Chin Road. Freehold projects with a site area of more than 160,000 sqft
Surrounded by panoramic Views of Botanic Gardens, MacRitchie Reservoir and Orchard Road. Full condo facilities with lush surroundings.

Location: 6 & 8 Keng Chin Road (District 10)
Tenure: Freehold
Site Area: approx. 163,000sqft
Carpark Lots: 320
Facilities: Full condo
Total Units: 278 (2 towers, 24 storeys)
Unit Types:
1 Bedroom 679 - 710 sq ft : 41 units
2 Bedroom 1016 - 1165 sq ft : 106 units
3 Bedroom 1480 - 1573 sq ft : 70 units
4 Bedroom 1722 - 2003 sq ft : 28 units
2 Bedroom Loft 1016 - 1165 sqft : 106 units
3 Bedroom Loft 2159 sq ft : 2 units
4 Bedroom Penthouse 2453 - 2691 sq ft : 8 units

Click here to register for a preview right now. Tel: (65) 6534 8000.

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Singapore Government Property Measures – negative in the near term, positive over mid- to long-term

2009-09-15T17:32:00.000+08:00

The Singapore government announced the following measures to ensure a stable and sustainable property market:

a) Reinstatement of the confirmed list sites and replenishment of the reserve list sites for the 1H10 government land sales programme (GLS).

b) Removal of the Interest Absorption Scheme (IAS) and Interest-Only Housing Loans (IOL) with effect from 14 Sep 09, except for projects where the units have already been offered for sale under IAS prior to 14 Sep 09.

c) Non-extension of the Jan 09 Budget assistance measures for the property market upon expiration.

Pre-emptive demand side measure to support stable and sustainable recovery. While the supply side initiatives as part of the GLS programme and the withdrawal of the budget assistance measures were largely anticipated, the demand side measure on the removal of IAS has been introduced sooner than anticipated. Even though the level of speculation as measured by the subsales as a percentage of total sales at 10.9% is not excessive, we believe that the government has decided to preemptively introduce the demand side measure earlier taking cues from the previous property boom when the supply side initiatives had been less effective in curbing speculation compared to the demand side measure on the removal of the deferred payment scheme (DPS).

We believe that the intention of the government’s latest measures is to support a stable and sustainable recovery in the property market and the authorities would refrain from draconian measures that would destabilise the sector. The strong rebound in the property sector ahead of the recovery in the economy has led the government to undertake preemptive measures to stabilize the sector and curb speculative bubbles from building up.

Channel checks indicate low direct impact from removal of IAS scheme but expect property market sentiments to dampen in the near term. The IAS scheme is much less susceptible to speculation compared with the DPS scheme (scrapped in Oct 07) as the banks are involved right from the beginning in the sales process, ensuring that the loans are extended only to creditworthy buyers.

Based on our discussions with the developers, the units sold under the IAS scheme account for 20-30% of the total units sold with the lower end of the range in the mass market segment. Our channel checks also indicated that the proportion of the units sold under the IAS has been declining as developers charge a higher premium for such sales. This is indicative of a rise in genuine demand. However, it is the anticipation of other potential demand side measures that is expected to dampen the property market sentiment. These could include measures such as higher cash downpayment requirements and lower loan-to-value for second property purchases.

Underlying demand-supply dynamics remain favourable. The supply of the Housing and Development Board (HDB) flats has fallen to below 10,000 units p.a. since 2003, a far cry from the supply of 36,000 new HDB homes in 1998. The tight supply in the public housing segment, which accounts for 78% of the total housing stock and the segment's narrow price differential with the private mass market segment support the overall private residential market. Also, we forecast that the average demand of around 6,500 units in the mass-market and mid-tier segments over the next three years is expected to outpace the supply. The private mass market and mid-tier segments constitute nearly 80% of the private housing market.

While the risk of other potential demand side measures by the government will have a negative near-term impact, dampening the pace of recovery, we remain positive over the mid- to long-term prospects as the current recovery in the property market has been supported by the strong underlying demandsupply dynamics, low interest rate environment and high liquidity flows that are expected to remain favourable.

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There the fierce bidding goes again on Government Land Sales

2009-09-11T17:35:00.001+08:00

Fierce bidding increases possibility of Confirmed List re-instatement, maintain OVERWEIGHT. The overwhelming 13 bids received for the Dakota Crescent site suggests that developers’ inventories are in dire need of replenishment after strong sales YTD. We believe this also reflects a sustainable sales momentum for mass and mid projects. Looking ahead, we expect the two already-triggered GLS sites (Yio Chu Kang and Serangoon) to draw similar demand, especially from developers who missed out during the past two tenders. More importantly, we believe this has all but confirmed the re-instatement of the Confirmed List next year. We reiterate our inclination towards landbank-rich developers who will be sheltered from overpaying for land given their adequate inventory at present to ride on the residential sales momentum. Amongst the big-cap developers, we like CityDev, while Wing Tai is our preferred proxy to the mid-cap space.

UOL emerged as the highest bidder for the GLS site along Dakota Crescent. While its bid of S$508 psf is within our estimates of S$450 – 500 psf, we note that this is almost close to the S$524 psf which Ho Bee and NTUC Choice Homes paid for a nearby site in Jun 07 (property peaked in 4Q07). The 185,000 sf site (GFA of 650,000 sf) could yield 550 units. We estimate a breakeven price of S$910 psf and selling prices of S$1,000 – 1,100, implying PBT margins of 10 – 20%. While this price range represents a premium over nearby Dakota Residences’ current S$850 – 950 psf, we reckon developers are attracted by: (1) proximity to upcoming Singapore Sports Hub, Marina Bay IR and CBD, as well as (2) accessibility through Dakota MRT Station in 2010. Further, we note that this is the only pure residential site on URA’s reserved list which is located close to the IR.

Competition was intense with 13 bidders, six of which missed out on the previous awarded site along Chestnut Avenue, i.e. Allgreen, F & N, Ho Bee and Sim Lian. More notably, bid prices were evidently more aggressive, with seven developers bidding at least twice the minimum bid as compared to Chestnut Avenue’s two. We attribute this largely to their fast-diminishing landbank, as well as knowledge of the high level of competition for land at present. Meanwhile, this could re-invigorate buying interest in nearby 348-unit Dakota Residences.

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Singapore Property Sector - A Positive Message

2009-09-11T12:12:00.002+08:00

National Development Minister Mah Bow Tan said there was “every likelihood” the government would reintroduce the confirmed list of land sites that was suspended last October. The question, as the Minister put it is: “how much to put on the list”.

This is the only logical and systematic thing one would expect this government to do after the hectic home sales since February, exceeding 1000 units a month.

What’s important is the positive “message” from the Minister. Our take on the subject:

- if the intention is merely to satisfy the strong demand, the government could easily transfer sites from the reserved (triggered only if developers commit to bid) to the confirmed list.

- The fact that the confirmed list is the option chosen is likely to reflect the government’s view that demand is sustainable.

It is also worth noting the Minister’s confidence in HDB resale prices continuing to rise. This is really surprising considering how the HDB has for years now, got a grip over the supply of public housing, with schemes like Build- To-Order”.

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Singapore Residential Property – New record for monthly sales volume

2009-09-10T14:15:00.000+08:00

Urban Redevelopment Authority’s (URA) monthly developer sales statistics data for the month of July indicates that the number of units launched for the month has increased by 76% mom to 2,878 units, while the number of units sold increased 51.6% mom to 2,767 units.

New record for the monthly sales volume. The July sales volume is the highest monthly sales volume ever witnessed bringing the total number of units sold YTD to 10,139 units which is nearly three times the number of units sold during the same period last year. The price levels have increased by around 4-5% mom. We believe that the fulfillment of pent up demand, low interest rates, easing of bank lending and return of foreign participation especially Indonesians, Malaysians and Chinese nationals to be the key drivers behind the consistent increase in the developer sales volume in the recent months.

Strong demand for projects in the Mass market segment. Mass market segment witnessed the maximum number of developer sale volume during July with 1502 units representing around 54.3% of the entire units sold and around 2.5 times the number of units sold in the previous month. Mass market sales volume were mainly boosted by the sales of The Gale which managed to sell 294 units in the month of July at median price levels of S$700 psf and Meadows @ Pierce which sold around 286 units this month at a median price of S$919 psf.

Mid-tier and High end segment not left far behind. Though the sales in the high end segment (-2.3% mom to 514 units) and mid tier segment (-13.4% mom to 751 units) eased a bit, the number of units sold above S$1,000 psf mark still noted a 60% mom increase in July. Nassim Park residencies managed to sell 4 units during the month of July at median price levels of S$3275. during July but the take up remained good at 135%.

Seasonal effects to kick in next month. Looking forward, we expect the developer sales to slow down during months of August and September due to seasonality effects (ghost month).Sales should return back to normal levels during the fourth quarter. However, the successful sales at the launches during early August would help support the sales volumes.

The recent successful launches include Optima @TanahMerah which sold its entire units within four days at ASP of around S$850 psf, Viva which has sold nearly 85% of launched units at an ASP of S$1,500 psf, Centro Residences that sold 80% of launched units at ASP of S$1100 psf at new benchmark price levels and more recently, Madison Residences that is about 60% sold at an ASP of S$1,700 psf.

Government unlikely to take drastic measures. The recent spurt in sales has raised concerns that government might step in and take actions to prevent the heating up of the property market, but with economy still on the road to recovery and with Sub-sale levels at around 10% in 2Q09 we don’t expect any drastic measures to be taken by the government as it could hamper the growth in the economy. We expect the government to undertake more supply side initiatives such as reinstating the Land sales program of confirmed sites to inject more supply in the mass and mid tier segments. However, the impact from the supply side initiatives should be low due to the favorable demand supply dynamics in the mass and mid market segments.

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Nautica Lake Suites at Sunway Integrated Resort

2009-09-09T13:57:00.000+08:00

Nautica Lake Suites is a luxury condominium & duplexes development (only 249 units) at Sunway South Quay with well-planned town planning, management, maintenance & community enrichments. In the heart of Sunway Integrated Resort City, located in the central of gravity of Petaling Jaya, greater Kuala Lumpur.

For investment packages:
- zero interest during construction
- legal & documentation fees
- free 10 nights stay at Sunway Pyramid Tower Hotel
- positive cashflow projected.

The official launch of Nautica
Venue: Sir Henry Keppel 2, Grand Hyatt Singapore
Date: Sat 12 and Sun 13 Sept 2009
Time: 1030am to 7pm.

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CapitaLand new project The Interlace at the former Gillman Heights site

2009-09-08T15:11:00.000+08:00

Gillman Heights development plan unveiled. Last Friday, CapitaLand (CapLand) unveiled the design for its upcoming residential project at the former Gillman Heights site. The project, named The Interlace, consists of 31 blocks housing 1,040 units and the unique design of this project aims to achieve privacy and spaciousness for buyers. This project is expected to be launched next month. The estimated construction cost for the project is between S$250psf and S$270psf and this is below our earlier expectations of S$300psf-S$350psf. Based on this new estimate, our new estimated breakeven cost for the project is between S$695psf and S$720psf (previously S$760psf-S$830psf).

Featuring 1,040 apartments on a 99-year leasehold land of 871,884 square feet, The Interlace will have units that range in size between 807 sq ft for two bedroom apartments and 4,306 sq ft for "super penthouses". CapitaLand president and chief executive Liew Mun Leong declined to disclose how much the units will cost, but said the firm is trying hard to price them under $1,000 psf, as reported in Todays.

The sale of Gillman Heights was approved by the Strata Titles Board in late 2007, but minority owners have fought the sale at every turn, appealing STB's decision at the High Court, and when this failed, to the Court of Appeal. It has been given the final green light, after Singapore's highest court dismissed a last-ditch plea by minority owners to overturn the sale. This marks the end of the two-year en-bloc saga which began when buyers CapitaLand, Hotel Properties and two private funds inked a $548 million deal to buy the 607-unit, 99-year leasehold estate in Alexandra Road in 2007.

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Online search for long-term and short-term stay in Singapore

2009-09-06T17:40:00.000+08:00

You might rent out a master bedroom for 1000 SG$/month in the conventional way. But you could as well charge 100 SG$ for a single night and earn up to 3000 SG$/month!

You are a homeowner and consider renting out a room on long-term or short-term basis, this website is for you. They make it easy and simple for you to rent out your place, be it long-term or short-term rentals.

roomsDB.net helps you to do exactly this. They accept short term bookings of your room on your behalf, manage the availability of your room and inform you via email and sms about new bookings.

Your offer will be online for a whole month. If you featured your offer, it will be online for the featured period + an additional month. They do not charge any kind of commission, hence regular offers are indeed completely free. However, the paid-for featured offers enjoy a much higher priority than regular offers.

If you are agent, don't worry, there are a so many agents who already successfully use roomsDB.net to boost their business.

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Residential Trevista sales momentum unfazed in the Hungary Ghost month

2009-09-04T15:24:00.000+08:00

The residential sales momentum is expected to remain strong with the successful launch of Trevista project bucking the trend of traditionally slow sales in the Hungary Ghost month. Over 85% of the 400 units launched have been sold at an ASP of S$925 psf in just three days. We expect sales momentum and price levels to firm up further on the back of improving liquidity conditions and easy financing options.

Trevista
NTUC Chioce Homes
Junction of Lorong2 and Lorong3
Outer Core Region (OCR).
99 Year old Lease Hold
Total Units 590 units, launched 400 units. Studio : 19 units (465sft), 1+study : 25 units (690sft) ,2-bedroom : 117 (860 - 926sft) 2+study : 19 (1,012sft) ,3-bedroom : 298 (1,100 - 1,280sft) ,4-bedroom : 112 (1,560 - 1,730sft)

Estimated TOP date 31 Dec 2012
Launch date Aug 28th
Takeup >85% of launched units
Avg Price (S$psf) S$925psf
Expected yield 3.25 - 3.5%

Features: 3 minutes walk to Braddell MRT station & 5 minutes walk to HDB Hub/Toa Payoh MRT. Close proximity to Pei Chun Public School, CHIJ (Toa Payoh), St Andrew's Village, Catholic Junior College and renowned international schools. Panoramic view of MacRitchie Reservoir and city skyline.

Due to the strong response for the initial 210 units launched on Friday NTUC choice homes released a second batch of 190 units on Saturday. The demand was stronger for smaller units with all the units in the 1BR and 1BR+study completely sold out. There are few units available in the 2BR, 3BR and 4BR units. Until 3 Sept, NTUC Choice Homes has sold 410 of the total 460 units it released for the preview of its Trevista condo in Toa Payoh last week.

The average price currently is understood to be around $920 psf. Singaporeans picked up 87 per cent of the total 410 units. Permanent residents made up 7 per cent and non-PR foreigners, 6 per cent, of buyers. The majority of PRs and non-PR foreigners were from China; some were also from Indonesia and Malaysia; there were also a few Swiss nationals, an NTUC Choice Homes spokeswoman said.

About 80 per cent of buyers purchased on the normal progress payment scheme. The remaining 20 per cent who opted for interest absorption scheme are being charged a 2 per cent price premium, the Choice Homes spokeswoman said. Can find out more at AsiaOne.

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A New Development Launch By Oxley - BLISS LOFT@Kim Keat

2009-09-04T15:11:00.000+08:00

Bliss Loft at No 25 Kim Keat Close. It is a 14-Storey Freehold Development totalling all in 48 units comprise of 1 bedroom, 2 bedroom & Penthouses. Beautifully designed facade with only 3 units per level in a excellent centralised location..

Novena MRT is just minutes away by walk where daily travelling is so much hassle-free. Good food is readily available nearby the famous Whampoa Food Centre and the individual Food shops around.

As of current information, the estimated Preview Price is approx S$ 1100 – S$1200 per square feet. The VIP Preview is schedule tentatively on 11 Semptember at 10 am. Booking Queue starts now based on first-come-first-book basis.

Expected TOP: Approx 4th Quarter 2013.

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CDL New Launch "HUNDRED TREES" @ West Coast - Tenure 999 Years

2009-09-04T15:10:00.000+08:00

We have a RARE Development coming up @ West Coast – Hundred Trees By City Development Limited. Formerly known as the “Hong Leong Gardens”.

Project Information:

Property Name: Hundred Trees
Property Tenure: 956 Years from 1928
Property Facade: 6 Blocks of 12-Storey Residential Development totalling 396 units. Full Condominium facilities
Land Size: 266,953 square feet
Property Address: No 4 West Coast Drive
Unit type: 1bedroom 474 sq ft 22 units

2bedroom 764-775 sq ft 66 units
2+study 883 sq ft 84 units
3bedroom 1119 sq ft 70 units
3+study 1270 sq ft 80 units
4bedroom 1442 sq ft 68 units
PentHouses 3143-3348 sq ft 6 units only

VIP Preview Launch will likely be end of Sept 2009 OR earlier. Most of all, we are advised tentatively that the VIP Preview Launch Price would be indicatively $930 - $980 psf!! Hundred Trees unit sale will likely be First-Come-First-Book Basis.

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New Condo Project @ D15 - LENOX

2009-08-27T23:18:00.000+08:00

LENOX is a 2 block of 76 residential apartments with 3 commercial shop development situated at 396/398 Changi Road. By foot, future residents or tenants can reach Kembangan MRT in less than 5 mins by stroll. Lenox is also one of the few rare developments in which is Freehold development situated at a stone throw distance from MRT stations in Singapore.

Average Maintenance fee is S$ 200 - S$ 250 per monthly based on the unit type and size. The below are the Unit type and Number for your references:

Expected TOP Date is 3rd Quarter 2013. The Launch Price Per Square Feet should be tentatively from S$ 1000 to S$ 1200 psf.

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Strong developer interest for Chestnet venue Site

2009-08-26T21:38:00.000+08:00

According to The Business Times, Chestnet Avenue in Bukit Panjang,a 99-year leasehold site in the state's reserve list which was triggered for launch last month received impressive 13 bids for its residential site reflecting the renewed interest and the growing positive outlook among developers for mass market residential projects. The top bid of S$143.7m or S$280 psf ppr put in by two companies in the Hong Leong Group was much higher than analyst expectation of bid levels of S$200 psf ppr. Far East Organization made the next highest bid of S$129.1 million, or S$252 psf ppr.

We estimate a breakeven price of around S$550 psf. Assuming a 10%-15% margin, the selling prices are expected to be around S$600-S$640 psf. Although the bid is above expectations, we believe that the expected selling prices are achievable. The strong interest from developers for chestnut avenue site is supportive of the favourable demand supply dynamics in the mass market segment and we expect strong response for the other sites triggered from the state's reserved list. The current trend is reflective of the growing developer confidence in the sustainability of the recovery in the property market as they seek for means to replenish their mass and mid market inventory.


----+--------------------------------------------------------+------------+------------
Sno Name of Tenderer                                        Tender PriceTender Price
                                                                                 
----+--------------------------------------------------------+------------+------------
                                                             (S$m)      (S$psf ppr)
----+--------------------------------------------------------+------------+------------
   1Sunny Vista Developments Pte. Ltd. And Hong Realty             143.7         280
    (Private) Limited                                                            
----+--------------------------------------------------------+------------+------------
   2Far East Square Pte. Ltd.                                      129.1         252
----+--------------------------------------------------------+------------+------------
   3Sim Lian Land Pte Ltd                                          113.0         220
----+--------------------------------------------------------+------------+------------
   4First Changi Development Pte Ltd                                93.4         182
----+--------------------------------------------------------+------------+------------
   5Centurion Re Pte Ltd                                            91.9         179
----+--------------------------------------------------------+------------+------------
   6UIC Commodities Pte Ltd And Chappelis Pte Ltd                   90.0         175
----+--------------------------------------------------------+------------+------------
   7Ho Bee Developments Pte Ltd                                     87.8         171
----+--------------------------------------------------------+------------+------------
   8Teambuild Properties Pte Ltd                                    87.1         170
----+--------------------------------------------------------+------------+------------
   9Allgreen Properties Limited                                     87.0         170
----+--------------------------------------------------------+------------+------------
  10Hoi Hup Realty Pte Ltd And Sunway Developments Pte Ltd          86.6         169
----+--------------------------------------------------------+------------+------------
  11Boon Keng Development Pte Ltd                                   81.2         158
----+--------------------------------------------------------+------------+------------
  12JBE Development Pte Ltd                                         78.5         153
----+--------------------------------------------------------+------------+------------
  13Frasers Centrepoint Limited                                     77.0         150
----+--------------------------------------------------------+------------+------------

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Tax treatment unchanged, property stocks to resume ascent

2009-08-25T18:36:00.000+08:00

Tax treatment unchanged, property stocks to resume ascent, reiterate OVERWEIGHT. The government’s retention of the current income tax framework pertaining to property sellers should bury fears of any near-term anti-speculative measures. We expect there are increasingly a higher proportion of buyers who are foreigners and reside in private addresses. These signs are amid prime-luxury prices remaining 20 – 30% off their 4Q07 peak.

Status quo on tax treatment for property sellers. The government will retain the current income tax framework pertaining to property sellers, which means it will consider the facts and circumstances (including reason of sale, holding period of property and frequency of property sales) of each individual disposal to determine if the disposal gains would be taxed. The earlier proposed change had stipulated that profit from a property sale (on or after 1 Jan 10) would be exempted from tax if the seller has sold only one property within a four-year period.

Supply-oriented measures becoming more likely. This reaffirms our view that a supply-oriented measure now appears more likely than a demand-oriented one, which should only be implemented when speculation is excessive and not when the economy and property sector have just started to recover. The figure above shows some of the expected launching projects.

While this should put to rest fears of any near-term anti-speculative measures, we believe the government is continuing its tight watch over the current property market buoyancy, with excessive speculation and mass projects’ affordability as their top concerns.

Although we admit that speculation may have surfaced in some cases within the mass-mid segment space, the fact that profile of buyers here continues to be dominated by locals and relatively more price-sensitive HDB upgraders (implying genuine owner-occupiers) suggests that any speculation is not over-the-top. As for affordability concerns, we hold the view that continued strong demand for mass projects, as well as recent intense bidding for the Chestnut Avenue GLS site, expected similar response for two other ongoing bids and more triggers could increase current asking prices projects within the mass segment. As such, this could induce the government to either reinstate the Confirmed List at earlier-than-expected dates or tweak public housing application criteria.

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TREVISTA - a 39-storey landmark in condominium at Toa Payoh

2009-08-24T16:31:00.000+08:00

Benefiting from panoramic views of MacRitchie Reservoir and the city, TREVISTA - a 39-storey landmark in condominium living in the heart of Toa Payoh, provides all the exclusivity of a luxurious condominium lifestyle and the supreme convenience of being just next door to Braddell MRT station with Orchard Road and CBD just minutes away.

Offering a wide selection of studio,2,3,4-bedroom apartments, comprehensive recreational facilities and a magnificent Sky Terrace that one can enjoy, Trevista represents a superb opportunity for the homeowner or astute investor.

What's more, developped by NTUC Home Choice, NTUC members enjoy special benefits when you purchase a unit in Trevista.

Date: 28 August 2009
Time: 3pm – 8pm
Venue: TREVISTA Sales Gallery, Lor 3 Toa Payoh

For more information, please call our appointed marketing agents at
CBRE: 8125-6313 or ERA: 8332-2000

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Singapore Property Reality bytes: State of affairs

2009-08-20T21:06:00.000+08:00

Come across this a few weeks old report on Singapore Property market, pretty well written and informative, so share with you on part of it.

Our checks across the property market segments suggest that primary home take-up rates continue to be strong, even as launch prices at some new projects are close to last cycle’s peak prices. Availability of low short term mortgage rate is keeping investor interest high in this market. Interestingly, we noted that valuation mismatches and weak rental yield seem to be already stalling the momentum in secondary home sales. Banks are now offering valuations that are 10-12% lower than the asking prices of home owners, restricting funding for completed homes.

Primary market: Good take-up rate continues

􀂉 Take-up rate at new launches this weekend were healthy, but slightly lower WoW.
􀂉 High priced “Volari” sold 55-60% of total units, and mid-market “Waterfront Key” sold 60% of launched units. High-end “360 Skyline” sold only 8% of all units.
􀂉 Better demand was for smaller units, with buyer profile being local. Investment interest has risen, given price momentum and lower mortgage rate availability.
􀂉 Prices at some newer launches are closer to/higher than previous cycle peak prices e.g. “Ascentia Sky”, “SilverSea”, “The Gale”, “Volari”, and “Waterfront Key”.

Our visits to a number of new projects launched this weekend (17-19th July) suggest that take-up rates still look healthy, although slightly weaker than last weekend. The surprise was the good demand seen for CDL’s newly launched high-end condo project, Volari, were 43 units (50% of total) were sold by Sunday noon, despite a rather large ticket size (S$2.6m, for a regular two bedroom unit). Buyers at all these projects are largely local. Investment related interests have risen significantly, helped by the rather low mortgage rate currently available, and the improvement in economic activity expected with the start of the Integrated Resorts in 1Q10.

Interestingly, we note that some of the new projects that have been launched in the last two weekends are at prices that are close to previous peak transaction prices (from similar condominium in their location). Projects that have crossed previous peaks include “Ascentia Sky”, “SilverSea”, “The Gale”, “Volari”, and “Waterfront Key”.

Secondary market: Expectation mis-match, momentum slowing

􀂉 Checks on secondary market suggest that seller expectations have risen significantly – Asking prices are ~20-25% higher than last transaction prices.
􀂉 Bank valuations are now 10-12% lower than seller’s asking prices
􀂉 Activity was brisk, but property brokers mentioned that volumes are lowering.

Furthermore, to assess the state of the secondary market we did home viewing at a few condominiums across Singapore, this week. These included, Citylights, The Sail@ Marina, The Metropolitan, Park Infinia, The View at Meyer, Pebble Bay, and Costa Rhu. The asking prices are now 15-25% above the last reported transactions prices in these condominiums. Some asking prices are even very close to previous cycle’s peak transaction levels in the said condominium. This, we understand from brokers, is now deterring buyers, and that the expectation mis-match has increased in the last two weeks.

More interestingly, we also checked with the valuations being offered by the various banks for the same units. Based on our checks, we note that bank valuations are now 10-12% below the asking prices of some of the home owners. Foreign banks, we understand, have become very stringent in the valuations being offered, while the local banks are still ready to negotiate on the valuations and adjust where differentials between original valuation provided and the proposed transaction price is less than 5%.

Rental market: Yields in the 3.0-3.5% range

􀂉 Checks on the rental market suggest that asking rental yields are in the 3-3.5%.
􀂉 This is still higher than the short tenure floating mortgage rates being offered by banks, but more in line with the longer tenure (1-3 year) fixed rates.
􀂉 Bulk of the home financing is happening at the shorter end of the curve, suggesting risk, if short-end SIBOR/SOR move upwards.

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Riding the Property Boom - Making your Millions

2009-08-14T18:54:00.000+08:00

Most millionaires became millionaires because of real estate investments and professionals in this industry are some of the top income earners in Singapore.

In this seminar, you will learn practical techniques to profit from the real estate market. You will learn how to look for ‘good buys’, increase your selling price, and maximize your returns on investment. There will be real-life war stories on how to succeed at any point in the property cycle.

How to Make Million$ in Property Investments
CUNY Baruch Alumni Event
Exclusive Session for All Alumni and Invited Guests
17th August 2009 7:15pm to 8.45pm
100 Orchard Road Concorde Hotel Level 4 Singapore 238840

3 Easy Ways to Register!
1. Tel: 6720 3333
2. E-mail: info@aventis.edu.sg
3. SMS: 93873582
Admission is FREE. Seats are strictly by reservations

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The progress on the project opposite Great World City

2009-08-13T23:05:00.000+08:00

Quite a few of the projects launched during 2006 and 2007 property boom will be TOP soon within next 1 or 2 years. In addition with the recent rush, we will see plenty of supply on the coming years until 2014. Can the market really take in all these new houses? Well, not too sure, let see one of the project opposite Great Wall City, see how is the progress.

Pretty fast. We shall see if the IR can really help Singapore boost its economic to the next level.

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Property Sector : Back With A Bang with these 4 reasons

2009-08-12T23:25:00.000+08:00

There got 4 explaination on the hot property market in Singapore:

Back with a bang. The private residential segment is on a recovery track, with the developer sales volume of 4,714 units in 2Q09 alone exceeding the 4,370 units sold for the whole of 2008. Price levels rebounded by 5-8% qoq in 2Q09 after a 30-40% fall from end-07 peak levels. With the resurgence of homebuyer sentiment, we expect price levels to firm up by another 8-10% during 2H09. Thereafter, prices are likely to rise in tandem with economic growth.

Structural transformation lends high degree of sustainability to the current recovery. Interest rates are drastically low in comparison to that during the Asian financial crisis. Net household wealth is double that in 1997 and household debt-to-asset ratios are at a 10-year low. Corporate balance sheets are also a lot stronger. Furthermore, favourable migratory patterns to Asia and Singapore's appeal as a top global city, as evidenced by the higher level of foreign participation, help support a sustainable recovery.

Supply glut has been overstated. The tight supply in the public housing segment, which accounts for 78% of the total housing stock, and the segment's narrow price differential with the private mass market segment support the overall private residential market. Moreover, the demand and supply dynamics are favourable to the private mass market and mid-tier segments that constitute nearly 80% of the private housing market. Also, the strong holding power of developers this time round lends them greater flexibility in releasing their high-end inventories.

Integrated resorts to spearhead re-rating. The two integrated resorts (IR) are expected to create 50,000 to 60,000 jobs and directly contribute S$5.4b to the Singapore economy, or 2.6% of GDP, by 2015. The IRs were the major catalysts of the last property boom by creating buzz for Singapore's transformation into a top global city in which to live, work and play. With their launches coming up in 1Q10, the IR theme should make a strong comeback towards the end of this year in the run-up to the IR openings.

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Another successful weekend property launch - Viva @ Novena and Madison Residences

2009-08-11T23:12:00.000+08:00

We visited the show flats of the two newly launched Viva and Madison Residences over the weekend. The sales momentum continues to remain strong with newly lauched Viva selling over 85% of the units launched at an ASP of S$1500 psf. Singaporeans were the majority of the buyers with around 30% foreign buyers mostly Indonesians and Malaysians. There was a good turnout at the soft launch of Madison Residences as well where 6 units of the 24 units previewed were sold out at around S$1,650 psf.


----------------+-------------------+------------------------
                Viva               Madison Residences
----------------+-------------------+------------------------
Developer       All Green          Keppel land Realty Pvt
                Properties Ltd     Ltd.           
----------------+-------------------+------------------------
Location        District 11  Near  District 10, 335, Bukit
                Novena Mrt         Timah Road     
----------------+-------------------+------------------------
Region          Central Core       Central Core Region(CCR)
                Region(CCR).                      
----------------+-------------------+------------------------
Tenure          Freehold           Freehold       
----------------+-------------------+------------------------
Type            Condominium        Condominium    
----------------+-------------------+------------------------
Estimated TOP   2013               2013           
date                                              
----------------+-------------------+------------------------
Total Units     235 units          18 storey residential
                                   with 56 units  
----------------+-------------------+------------------------
Launch date     Aug 8th            Aug 7th ?preview
----------------+-------------------+------------------------
Takeup          85% of launched    25% of previewed units
                units                             
----------------+-------------------+------------------------
Avg Price       S$1500 psf         S$1650 psf     
(S$psf)                                           
----------------+-------------------+------------------------
Expected yield  3 - 3.5%           3 - 3.5%       
----------------+-------------------+------------------------

Viva @ Novena

Allgreen Properties launched their much awaited high end VIVA project near Novena MRT this weekend. The response was really good with around 85% of the units launched sold at and ASP of S$1,500 psf. The absoulte price levels for 2Br, 3Br and 4Br were around SGD 1.88m, 2.1mn and 2.8m. Singaporeans were the majority of the buyers with around 30% foreign buyers mostly Indonesians and Malaysians. The espected rental yield is around 3-3.5% with rental levels around SGD 7000 pm. Payment schemes - Cash payment (10% discount on payment price) ,Interest Absorption Scheme (8% discount), Fully deferred payment scheme (7% discount) with 20% being the initial payment and rest to be paid at TOP.

Madison Residences

Madison Residences had a soft launch (preview) of their 24 units at District 10 this weekend and managed to sell around 25% of the units launched. The mean price levels were around 2.4 million for their 3BR flats which works out to an ASP of S$1,650 psf. The rental yields were around 3 - 3.5% with rentals around S$7500 pm for a 3BR apartment in the locality. We understand that Indonesians were the majority of the foreign buyers. Payment schemes - Normal cash payment scheme and Interest Absorption Scheme with 2% higher price levels.

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LINCOLN SUITES @ Novena launching soon

2009-08-11T23:05:00.000+08:00

Lincoln Suites is just behind VIVA located along Khiang Guan Avenue, directly opposite Goldhill Plaza and United Square shopping mall. Novena Square and Novena MRT Station is situated opposite the road.

Freehold
Developer : Koh Brothers
Site Area: Approx 60,000 sqft
Total: 175 units

Studio – 474/484 sq.ft. ( 44 units )
2 Bedroom – 1033/1044/1976 sq ft ( 42 units )
2 + Study – 1098/1109/1119 sq. ft (24 units)
3 bedroom – 1561 sq ft (14 units)
3 + Study – 1615 sq ft ( 4 units )
4 bedroom – 1798 sq ft ( 14 units )
4 + Study - 1851 sq ft ( 4 units )
Duplex - 2669/3089 sq ft ( 4 units )
Penthouses – 3692/4822/5554 sq ft ( 3 units )

NEAREST MRT STATIONS

Novena MRT Station (NS20) 0.39 km
Newton MRT Station (NS21) 0.76 km

NEAREST SHOPPING CENTRES

United Square/Goldhill Plaza 0.10 km
NOVENA SQUARE 0.34km
SQUARE 2 0.43km

Nearest School to Lincoln Suites

ETONHOUSE INTERNATIONAL SCHOOL NEWTON
Blk 39 Newton Road Singapore 307966
Distance : 192.13 m

ALLIANCE FRANCAISE DE SINGAPOUR
Blk 1 Sarkies Road Singapore 258130
Distance : 694.44 m

ANGLO-CHINESE PRIMARY SCHOOL (ACSP BARKER ROAD)
Blk 50 Barker Road Singapore 309918
Distance : 785.38 m

RAFFLES GIRLS' SECONDARY SCHOOL
Blk 20 Anderson Road Singapore 259978
Distance : 1.62 km

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Optima and Centro bring their adjacent projects Casa Merah and Grandeur 8 shot up their price

2009-08-06T19:04:00.000+08:00

Optima @ Tanah Merah

There were 297 units launched at Optima @ Tanah merah over the weekend comprising of 1,2,2+study, 3, 3+study and 4 bedroom with estimated TOP of 2014. Due to the overwhelming response and people forming long queues, a balloting system was used in the initial two days. The project nearly sold out in the first two days at ASP around S$800 - S$900 psf. With the sale of the few remaining units yesterday, the entire project is fully sold in just three days. The rentals yields are around 4%. The buyer profile were mostly Singaporeans with a small percentage of foreigners mainly Chinese PR's and Malaysians. Asking Prices at Casa Merah, adjacent to Optima, have shot up from the range of S$700 psf to S$ 830 psf with in a span of month.

Centro Residences

The developer Far East Organization, launched around 40% or 120 units out of a total of 329 units in the first phase launch of Centro Residences. The units comprise of 2/3/4 Bedrooms + Penthouses with floor Size range from 775 - 1025 sqft. The was a huge rush and we had to wait for 10 mins before our turn. More than 80% of the launched units were already taken up a ASPs around S$1100-1200 psf after a special discount of 12%. The expected yields are arounf 3.5-4.0%. Asking prices at nearby Grandeur 8 have jumped from 750 psf to around 850 psf. The price level of S$1100 - 1200 psf is a new price benchmark for that area.

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Record home sales - how long can it lasts?

2009-08-05T17:35:00.000+08:00

Record home sales in June 09. The Urban Redevelopment Authority (URA) data showed that private residential home sales rose to a record high of 1,825 units in June 2009. This surpassed the previous record of 1,723 units in August 2007. In fact, the recovery has started in February and continued for five straight months. We expect sales to remain strong for the rest of 2009.

After the recent sales momentum, developers have lowered discounts for private residential homes. Nevertheless, buyers continued to be attracted by the lower discounts and the Interest Absorption Scheme (IAS) offered by developers. The rally in the stock market and the recovery of the Singapore economy in 2Q09 has also led to the robust property sales.

The majority of the homes sold were in the mass market and mid-end segments. Moreover, most of the buyers continued to be HDB upgraders. 8 @ Woodleigh, a condominium project by Frasers Centrepoint Homes, stood out as the best selling property. All 330 units were sold in June 09 at a median price of S$804 per square foot (psf).

These suggest that primary home take-up rates remain strong, even with launch prices close to last cycle’s peak prices. The availability of low mortgage rates is keeping investor interest high. Interestingly, valuation mismatches and weak rental yields seem to be stalling secondary market momentum, while banks are now offering valuations that are 10-12% lower than asking prices. We remain of the view that Singapore home-price momentum will stall.

Primary market: Good take-up rate continues. Take-up rates at new launches this weekend were healthy, but slightly lower WoW. High-priced Volari sold 55-60% of total units and mid-market Waterfront Key sold 60% of launched units while high-end 360 Skyline sold only 8% of total units. Better demand was seen for smaller units, with buyer profile largely local. Investment interest has risen, given price momentum and lower mortgage rate availability. Prices at some newer launches are closer to/higher than previous cycle peak prices, eg Ascentia Sky, SilverSea, The Gale, Volari and Waterfront Key.

Secondary market: Expectation mismatch, deceleration. Checks on the secondary market suggest that seller expectations have risen significantly - asking prices are c. 20-25% higher than last transaction prices, while bank valuations are now 10-12% lower than seller’s asking prices. Activity was also brisk, however property brokers mentioned that volumes are falling.

Rental market: Yields in the 3.0-3.5% range. Checks on the rental market suggest that asking rental yields are in the 3-3.5%. This is still higher than the short tenure floating mortgage rates boffered by banks, but more in line with the longer tenure (one-to-three year) fixed rates. Bulk of the home financing is happening at the shorter end of the curve, suggesting risk, if short-end Sibor/Sor move upwards.

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Lush @ Holland Hill

2009-08-04T18:29:00.000+08:00

New Launch Property at Holland Hill Area: Lush @ Holland.

Consist of Spacious 2, 3, 4 Bedroom Apartments and Penthouses:

2-Bedroom type - 1281 sq ft
3-Bedroom type - 1475 - 1561 sq ft
4-Bedroom type - 1851 sq ft
Penthouses - 2756 - 5145 sq ft

* Located in Prime District 10, Excellent Balmoral Location
* North-South Facing Single Loading Design (rare in modern condos)
* Within 1 km to many top schools and international institutes
* 5 mins drive to Orchard Shopping Belt
* Outstanding Paranomic View of Holland lush Greenery
* 8 mins drive to future Marina IR, Singapore Flyer and CBD
* Easy access to Major Expressway
* High End Quality Finishes and Branded Appliances with every unit
* Interest Absorption Scheme by Developer

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