Real Estate Radar

To Tax Or Not to Tax

2009-07-10T11:05:00.002+08:00

It seemed pretty confusing to pty owners & investors after a proposed change on taxing profits from pty sales was reported. It generated enough concerns to send pty stocks down and ytd, MOF (Ministry of Finance) has to come out to clear the air.

Generally, gains from pty sale is not taxable as it is a capital gain, unless a person is deemed to be a trader. This sometimes creates confusion to pty owners who are not sure if they would be taxed.

The proposed change is to provide certainty to owners who sell only 1 pty within a 4yr period. However, it does not mean those who have sold >1 pty within the 4yr period will automatically be taxed. IRAS will assess based on the facts and circumstances of each case.

* MOF-Tax , ST-Tax , IRAS-PtyTrader *

No Go for Bungalow

2009-07-10T09:09:00.000+08:00

A couple went to High Court after URA rejected their application to convert a semi-D hse into a bungalow. The court dismissed their appeal and referred to a 2002 URA order that imposed restrictions on the redevelopment of semi-D hse.

The couple's hse sits on a 419 sqm plot, but the hse which it is attached to, has only 244.5 sqm of land. Thus their redevelopment would lead to a lop-sided hse which the 2002 circular was drafted to prevent such anomaly. Therefore the adjoining semi-D must also be on a >=400 sqm land and width of >=10m such that it can be developed into another detached hse, only then the bungalow will be allowed to erect.

* AsiaOne-Bungalow *

Tracking S'pore 2009 Economy - 1Q09 GDP

2009-07-02T09:11:00.000+08:00

(1) GDP
1Q09 (qtr-qtr): -14.6%
1Q09 (yr-yr): -10.1% (LastQ: -4.2%)
2008: 1.1% (2007: 7.8%)
2009 Forecast: -9 to -6% (Revised fr: -5 to -2%)

(2) CPI
(A) Mth-Mth
May 09: 0.6%
Apr 09: -1.1%
Mar 09: -0.4%

(B) Yr-Yr
May 09: -0.3%
Apr 09: -0.7%
Mar 09: 1.6%

(C)
2008: 6.5%
1st 5mths of 2009: 1.1%

(3) Employment
1Q09p: -1.0k
4Q08: 21.3k
3Q08: 55.7k
2008: 227.2k (LastYr: 234.9k)

(4) Redundancies
- Retrenchment & Contract Workers
1Q09p: 12,600
4Q08: 9,410
3Q08: 3,180
2008p: 13,400 (LastYr: 7,675)

(5) Unemployment
1Q09p: 3.2%
4Q08: 2.5%
3Q08: 2.3%
2008: 2.3% (LastYr: 2.1%)

(6) Others
Apr09: Total trade -28.5%
Mar09: Industrial Production Index -33.9%
Mar09: Retail Sales -7.3%

* MTI-GDP *
* StatSing: CPI03 , CPI04, CPI05 *
* MOM-Employment *

Fall In Grade A Office Rents

2009-03-05T11:14:00.004+08:00

A report done by CBRE Research showed tt S'pore office rents in 4Q08 (yr-yr) had the sharpest fall in Asia. Her vacancy rate had also gone up to 0.9% fr 0.2% a yr ago. However, some tenants whose leases tt were committed 3 - 4yrs ago could still face with higher rents upon renewal this yr.

4Q08 (yr-yr) Grade A Office Rental:
SGP: -14%
Tokyo: -13.4%
HK: -13.2%
Hanoi: 25.6%
KL: 19.3%
Seoul: 9.5%

* Asia1-Office *

Beware of Indemnity Clause

2009-03-03T17:50:00.005+08:00

Case 1:
Some developers are getting the original buyers to sign a Letter of Authority with an indemnity clause that the original buyers will be liable for breaches by their sub-purchasers, including payments for pty tax and maintenance fees.

However, the Housing Controller said tt this was against rule 16 of the Housing Developers Rules, which requires a developer to enter into fresh S&P with the sub-purchasers on the same terms and obligations as the original buyers. Thus the sub-purchasers will be in a direct contractual relationship with the developer and releases the original buyers from their obligations.

Case 2:
Some developers are offering Interest Absorption Scheme (IAS) to attract buyers. Such scheme is similar to the Deferred Payment Scheme tt was scrapped by Govt last yr, except tt buyers need to secure home loans and developers will pay the interest until TOP.

But the scheme comes with an indemnity clause tt shd the developer fail to pay interest to the bank, buyers will have to make the payment and their credit standing will also be affected. Experts think tt such risks are low bcos the developer's reputation is at stake, and the amt of interest is negligible to the overall project cost.

* CNA-S&P , CNA-IAS *

More Condo Launches Coming

2009-03-03T13:00:00.008+08:00

With 2 successful launches, Caspian @Jurong & Alexis @Alexandra, another 102-unit FH project, St Patrick's Residences @St Patrick's Rd and 118-unit project, The Beverly @Toh Tuck Rd were launched.

On ave, the price of St Pat Residences was abt $675 psf for a 1,152 sf 2BR unit and abt $900 psf for a 3,423 sf 4BR penthouse. Some 3BR cost just <$1m. Interest absorption scheme (IAS) was offered at a 3% permium.

Over at The Beverly, ave price was abt $750 psf. Unit sizes range fr 1,120 sf for 2BR to 4,187 sf for 4BR, and 2,099 - 2,757 sf for 2-storey penthouses. IAS was not offered.

More projects are expected to launch soon: Double Bay Residences @Simei, The Arte @Thomson, Domus @Irrawaddy, Ascentia Sky @Redhill and The Mercury @River Valley.

* AsiaOne-Launch *

*****

Seems tt S'poreans are either vy rich or optimistic ... ... long queues at NATAS fair, and buying big ticket item like condo; while Citibank, AIG are requesting for more $$$, and stocks plunged to many-yrs lows.

And still got pple so brave doing flipping ... ... * AsiaOne-Flippers *.

Mar09 DC Rates Revision

2009-02-28T08:33:00.000+08:00

wef 1 Mar 09, 4 grps will have lower DC rates:
~ Grp A (Commercial): -4%
~ Grp B2 (Res - NL): -15% (LastRev: -6%)
~ Grp C (Hotel, Hospital): -10%
~ Grp I (Biz zone commercial use): -4%

The rest remains unchanged.

* URA-DC , URA-Grouping , URA-DCRates *

Before You Leap ... ...

2009-02-22T15:22:00.001+08:00

As pty prices continue to fall, some banks are disbursing a smaller loan amount to borrowers, and buyers will have to either top-up the diff or pay a 1-1.5% penalty for backing out the bank loan. This is because formal valuation lags behind indicative valuation, and when prices continue to drop, it will result in a lower valuation on a pty.

Some banks are also staying clear fr some developments such as The Sail and Sentosa Cove due to large variations in valuation. A Citigroup report showed that prices of high-end pty had dropped by abt 35% fr a yr ago, and could further drop by 30-40% this yr.

* AsiaOne-Valuation *

KL Luxury Condo Price Dived

2009-02-22T14:09:00.000+08:00

Prices of luxury condos in KLCC area hv dived amid economic downturn, and as foreigners cash out.

Top KLCC apartment used to sell around RM3k psf (S$1,254 psf) during the peak. Now, most projects are selling abt RM1+k psf in the secondary mkt, except for some premium units which developers are asking abt RM2k psf.

* AsiaOne-KLCondo *

Strong Interest in Caspian

2009-02-09T18:23:00.004+08:00

Caspian, by Frasers Centrepoint, attracted very strong interest at its preview last wk. This is the 1st major condo launch tis yr.

Located beside Lakeside MRT, the 712unit LH condo was priced at $580 psf for the 1st batch of 250 units. Subsequent 100 units with better facing were sold at $600 psf. Buyers who opted for interest absorption scheme hv to pay 3% more on the purchase px.

Nearby condos like Lakeholmz and Lakeshore are commanding at $564 - $626 psf and $750 psf respectively. The Centris at Boon Lay MRT was transacted at ard $550 psf last mth.

* ST-Caspian , AsisOne-Caspian , Frasers-Caspian *

Prime Projects Near Ave Launch Prices

2009-02-09T17:41:00.005+08:00

A study by Savills S'pore showed tt recent economy downturn has led to a handful of uncompleted prime residential pty sold at prices below or near to their ave launch levels.

For projects launched in 2005, transacted prices remained well above their ave launch prices. But not so for those launched in 2006 - 2008.

Projects falling below launch levels (Non-landed in D1, 4, 9, 10, 11):

* ST-Prime *

HDB Lease Buyback Scheme

2009-02-07T13:24:00.000+08:00

wef 1 Mar 09, HDB will accept application for Lease Buyback Scheme (LBS) - HDB will buy back the tail-end of the lease, leaving the elderly with a non-transferable 30yrs lease.

Eligibility:
- Singaporean
- Age of youngest lessee is >= 62yrs old
- Household income <= $3k
- <= 3Rm flat, with outstanding mortgage <= $5k
- Hv not owned >= 4Rm flat or pte pty
- Hv only enjoyed 1 housing subsidy
- Hv owned the flat for >= 5yrs

Equity Unlocked:
- Value of flat depends on (1) mkt value, and (2) length of the remaining lease.
- Govt subsidy of $10k.

Payout:
- $5k lump sum
- Remainder will be used to purchase an annuity fr CPF to provide mthly stream of income for life. The amt of mthly income depends on the equity unlocked (minus $5k), the age and gender of the lessee(s).

If the elderly passes away b4 30yrs is up, his fmy will get a pro-rated refund. And if he lives beyond 30yrs, HDB will also ensure a roof over his head.

* HDB-Leaseback , Asia1-Leaseback *

4Q08 Real Estate Data

2009-01-23T16:18:00.010+08:00

Prices:
(A) Pte Residential:
Qtr-Qtr: -6.1% (LastQ: -2.4%)
Yr-Yr: -4.7% (LastYr: 31.2%)
- (i) Non-landed: -6.3% (LastQ: -2.5%)
- (ii) Landed: -5.3% (LastQ: -1.9%)

(B) Commercial
- (i) Office:
Qtr-Qtr: -4.9% (LastQ: -3.9%)
Yr-Yr: -7.0% (LastYr: 32.6%)
- (ii) Shop:
Qtr-Qtr: -4.8% (LastQ: -0.3%)
Yr-Yr: -1.9% (LastYr: 13.2%)

(C) Industrial: -6.5% (LastQ: 0.9%)

Rental:
(A) Pte Residential:
Qtr-Qtr: -5.3% (LastQ: -0.9%)
Yr-Yr: 2.0% (LastYr: 41.2%)

(B) Commercial :
- (i) Office:
Qtr-Qtr: -6.5% (LastQ: -0.8%)
Yr-Yr: 5.8% (LastYr: 56.1%)
- (ii) Shop:
Qtr-Qtr: -0.6% (LastQ: -0.6%)

(C) Industrial: -3.7% (LastQ: 0.1%)

Supply:
(A) Pte Residential:
- (i) Uncompleted: 64,982 units (LastQ: 66,422)
- (ii) Unsold: 43,414 uncompleted units (LastQ: 42,918)
- (ii) Launches: 706 uncompleted units (LastQ: 2,244)
[Newton Edge @Makeway Ave, RV Suites @River Valley Rd, Rosewood Suites @Rosewood Dr]
- (iii) Sold: 407 uncompleted (LastQ: 1,452) units and 12 completed (LastQ: 106) units
- (iv) Sub-sales: 203=12.8% of all sales (LastQ: 492=11.5%)
- (v) TOP: 2,651 (LastQ: 2,195)
[City Square Residences @Kitchener Link, The Esta @Amber Gdns, The Infiniti @West Coast Pk]
- (vi) Vacancy rate: 6.1% (LastQ: 5.8%)

(B) Commercial
- (i) Office: 1,386k sqm GFA (LastQ: 1,407k sqm), Vacancy rate: 8.8% (LastQ: 8.2%)
- (ii) Shop: 678k sqm GFA (LastQ: 731k sqm), Vacancy rate: 6.2% (LastQ: 6.3%)

(C) Industrial
- (i) Total supply: 4.55m sqm GFA (LastQ: 4.80m sqm)
- (ii) Vacancy rate: 6.6% (LastQ: 6.6%)

HDB
- RPI: 1.4% (LastQ: 4.2%)
- Resale Transaction: -24% (Qtr-Qtr), -3% (Yr-Yr)
- Median COV: -$4k

* URA-RealEst , URA-PPIyr , URA-RentalYr , URA-Chart1 , URA-Chart2 *
* HDB-RealEst , HDB-Prices , HDB-COV , HDB-Rental , HDB-Chart *

Budget 2009 - Property Market

2009-01-23T09:28:00.008+08:00

Measures tt affect the pty mkt:

1) For Developers:
- Allowing 1yr extension of project completion period.
- Allowing re-assignment of Govt sale sites & pte land owned by foreign developers.
- Giving QC holders <=4yrs (fr date of issue of TOP) to dispose of all pte residential units in the development.
- Allowing QC holders to rent out unsold private residential units for a max of 4yrs (fr date of issue of TOP or date of application, whichever is later).
- Allowing up to 2yrs of pty tax deferral for land approved for development.

2) For Pty Owners:
- 40% pty tax rebate for owner-occupied residential properties.
- 40% pty tax rebate for commercial & industrial properties.
- Exemption of <=$150k of Net Annual Value for one owner-occupied residential pty.
- Deferment of increase in assessment rate for hotel rms.
- Additional CPF Housing Grant (AHG) for 1st time home-buyers: Max quantum will be increased fr $30k to $40k, and the household income ceiling will be increased fr $4k to $5k.

* Budget 2009 , URA - Dev , IRAS - Tax *

2008 SGP Economy Report Bk

2009-01-21T21:20:00.005+08:00

(1) GDP
4Q08 (yr-yr): -4.2% (LastQ: 0.0%)
2008: 1.1% (2007: 7.8%)
2009 Forecast: -5 to -2% (Revised fr: -2 to 1%)

(2) CPI
(A) Mth-Mth
Oct: 1.0% (Last mth: No change)
Nov: -0.2%
Dec: -0.6%

(B) Yr-Yr
Oct: 6.4% (Last mth: 6.5%)
Nov: 5.5%
Dec: 4.3%

(C) 2008: 6.5%

(3) Employment
4Q08: 26.9k (LastQ: 55.7k)
2008: 227.2k (LastYr: 234.9k)

(4) Retrenchment
4Q08 Prelim: 7k (LastQ: 2,346)
2008 Prelim: 13,400 (LastYr: 7,675)

(5) Unemployment
4Q08: 2.6% (LastQ: 2.2%)
2008: 2.3%(LastYr: 2.1%)

* MTI-GDP *
* StatSing: CPI10, CPI11, CPI12 *
* MOM-Employment *

Lower Price or Goodies for New Condo

2009-01-06T18:09:00.010+08:00

Soft Launch/Pte Preview:
(1) Balestier area, FH, ~$1k psf
Nova 48 @Prome Rd, 48units
Nova 88 @Bhamo Rd, 88units

(2) Alexandra area, FH, ~$900 - $1k psf
Alexis @Alexandra Rd, 293units

(3) Mhd Sultan area, 999yrs, ~$1.5k psf
Vivace @Tong Watt Rd, 85units

On Discount/Offer Goodies:
(1) Lucida @Suffolk Rd, FH, 62units
~$1.2k psf (was $1.6k psf early 2008)

(2) Mountbatten Suites @Mountbatten, FH, 32units
~$900 psf (was $1.1k psf), offering stamp duty absorption

(3) Woodsville 28 @Potong Pasir area, 99yrs, 110units
~$850 psf, offering renovation vouchers.

* AsiaOne-Prices *

Prices of Thailand Luxury Condo to Slide

2008-12-11T23:26:00.006+08:00

As global economy heading south, analysts predict tt Thailand's luxury condo prices would fall by 10 - 20% in 1H09, despite being relatively cheap (abt 100k - 150k baht psm = S$4,3k - 6.5k psm) than S'pore/HK.

The luxury condo mkt deps on overseas investors as local Thai buyers prefer luxury detached hse to condo. Thai law forbids foreigners from buying land, but allows them to own up to 49% of the saleable space in a condo.

* AsiaOne-ThaiPty *

Not Looking Good - HK Property

2008-12-10T23:45:00.000+08:00

A Reuters' poll showed tt HK & S'pore apartment prices were expected to drop abt 20% by the end of 2009.

In HK, banks are asking for 30 - 40% down payment instead of the usual 10%, leading to even fewer buyers and thus sellers are disposing their properties at 30% discounts.

HK pty transactions hit a 17-yr low in Nov, down 87% in value a yr ago.

* AsiaOne - HKPty *

1H09 Govt Land Sales

2008-12-05T15:57:00.000+08:00

1H09 Govt Land Sales (GLS) Programme would only consist of sites in the Reserve List. Of the 38 sites fr this list, 37 sites were actually carried over fr the Reserve List and 1 fr Confirmed List in 2H08. No new sites will be added.

The 38 sites potentially yield:
(A) 7,920 pte residential units
(B) 512k sqm GFA of comercial space
(C) 5,160 hotel rooms

Outside the GLS Programme, the supply of sites includes:
(A) 40k sqm GFA of commercial space
- (i) 14k sqm GFA fr One-North
- (ii) 5k sqm GFA fr vacant state buildings
- (iii) Retail facilities at Sentosa, parks and MRT
(B) 240 hotel rooms
(C) No supply of pte residential units

* URA-GLS , AsiaOne-GLS *

3Q08 Economy Performance

2008-11-22T14:53:00.002+08:00

(1) GDP
3Q08 (yr-yr): -0.6% (LastQ: 2.3%)
2008 Forecast: 2.5%
2009 Forecast: -1 to 2%

(2) CPI
(A) Mth-Mth
Jul: 1.2%
Aug: 0.2%
Sep: No change

(B) Yr-Yr
Jul: 6.5%
Aug: 6.4%
Sep: 6.7%

(C) 1st 9mths: 6.9%

(3) Employment
3Q08: 57.8k (LastQ: 71.4k)

(4) Retrenchment
3Q08: 2k (LastQ: 1,798)

(5) Unemployment
3Q08: 2.2% (LastQ: 2.2%)

* MTI-GDP *
* StatSing: CPI7, CPI8, CPI9 *
* MOM-Employment *

Lower Density for Strata Landed Homes

2008-11-03T22:53:00.002+08:00

URA is reinstating an old rule to strata-titled landed homes, aka cluster homes, as developers tend to cram as many homes onto a plot as possible, leading to congestion problem and affecting quality of the living environment.

wef 3 Feb 09, a cap to limit the number of allowable units in strata landed housing will be re-introduced. This will be based on a min plot size/unit which is similar to conventional landed homes. Thus developers will have to build fewer strata landed units, but each unit can be bigger in size.

A comparison of the # of units on 10k sqm b4 and after the change of rules:
Strata terrace: 80 vs 66 (20% bigger in size)
Strata semi-D: 72 vs 50 (45% bigger in size)
Strata bungalow: 60 vs 25 (2.4x bigger in size)

Strata-bungalows and semi-D may eventually disappear as such houses are bigger and thus less affordable. Typically these homes cost 10 - 20% less than conventional landed homes under current rules.

* URA-Strata , AsiaOne-Strata *

50% Discount?

2008-10-31T12:19:00.000+08:00

The owner bought the 3.3k sf hse in 2006 at US$90m. However, as mkt continues to fall, the hse near Victoria Peak, one of the most prestigious addresses in Hong Kong, was sold at HK$76m which was less than half its asking price of HK$190m.

Analysts are expecting a 30% drop in prices for the city's high-end properties as banks tighten mortgage policies.

* AsiaOne-HK *

High-end Projects Hardest Hit

2008-10-30T12:36:00.003+08:00

A DTZ report showed tt prices of some high-end projects launched in 2006 & 2007 have started to dip in 3Q07 and are now 4 - 26% lower than their highs.

Based on a low caveat of abt 10 transactions/project, Oceanfront @Sentosa Cove dived 26.4%, whereas Scotts Sq fell by 3.6% only.

Knight Frank's in-house data indicated abt 12% fall in prices for luxury properties in prime districts since early 2008. The drop is more than the expected 10%.

Official data for the core central region in 3Q08 showed a dip of only 2.7% bcos it takes into account all properties.

Banks used to give up to 80% loan to investors in 2006 & 2007. But now, this amount has reduced to 60 - 70%. With more projects going TOP soon, investors may want to sell their properties fast and drive the prices even lower. But most agents have yet to see fire sales.

Source: DTZ

* AsiaOne - High-end *

3Q08 Real Estate Data

2008-10-25T11:40:00.017+08:00

Prices:
(A) Pte Residential: -2.4% (LastQ: 0.2%)
- (i) Non-landed: -2.5% (LastQ: 0.1%)
- (ii) Landed: -1.9% (LastQ: 0.6%)
(B) Commercial
- (i) Office: -3.9% (LastQ: 0.7%)
- (ii) Shop: -0.3% (LastQ: 0.7%)
(C) Industrial: 0.9% (LastQ: 4.1%)

Rental:
(A) Pte Residential: -0.9% (LastQ: 2.5%)
(B) Commercial
- (i) Office: -0.8% (LastQ: 6.3%)
- (ii) Shop: -0.6% (LastQ: 5.2%)
(C) Industrial: 0.1% (LastQ: 2.3%)

Supply:
(A) Pte Residential:
- (i) Uncompleted: 66,422 units (LastQ: 67,569)
- (ii) Unsold: 42,918 uncompleted units
- (ii) Launches: 2,244 uncompleted units (LastQ: 1,814)
[Livia @Pasir Ris, Clover by the Park @Bishan, Beacon Hts @Mar Thoma Rd]
- (iii) Sold: 1,452 uncompleted and 106 completed units
- (iv) Sub-sales: 492=11.5% of all sales (LastQ: 518=12%)
- (v) TOP: 2,195
[The Sail @Marina Bay, The Cosmopolitan @Kim Seng Rd]
- (vi) Vacancy rate: 5.8% (LastQ: 6.1%)

(B) Commercial
- (i) Office: 1,407k sqm GFA (LastQ: 1,334k sqm), Vacancy rate: 8.2% (LastQ: 7.8%)
- (ii) Shop: 731k sqm GFA (LastQ: 668k sqm), Vacancy rate: 6.3% (LastQ: 6.3%)

(C) Industrial
- (i) Total supply: 4.80m sqm GFA
- (ii) Vacancy rate: 6.6% (LastQ: 6.9%)

Source: URA

HDB
- RPI: 4.2% (LastQ: 4.5%)

Source: HDB

* URA-RealEst , HDB-ResalePx , HDB-COV , HDB-Rental *

Troubled US Homes

2008-10-22T11:06:00.003+08:00

More and more Americans' homes are worth less than the mortgages that they have taken, and may threaten the US economy with another wave of foreclosures and bankruptcies.

This number has increased from 6.6m homeowners last yr to abt 12m now, and is expected to increase with home prices continue to fall. If these houses go into foreclosure, the oversupply of homes will delay housing mkt recovery and add pressure on banks.

Many people got into trouble when they refinanced their mortgages when property values rose, to pull out cash to support their lifestyles; and now with a mortgage worth more than their homes, some choose to walk away and return their keys to the banks.

For those who bought US homes in early 2003, nearly 1 in 3 now have -ve equity; and nearly half of the buyers in 2006 are under water now.

* ST-US Mortgages *

Prices of High-end Condo Are Falling

2008-10-20T21:11:00.004+08:00

High-end apartments are selling at discounted price as stock market losses have forced some owners to dump their properties. The situation is worse for those under deferred payment scheme and are not eligible for loans as they have to make payment upon TOP.

Last yr, one owner sold his 29th flr unit at Twin Regency for $1.4m. But recently, he was selling his 27th flr unit at $1.05m even though it could fetch $1.3m. The Sail @Marina Bay, which were selling for $2k psf, are now selling at $1,450 psf. But buyers are asking for $1,100 psf.

* AsiaOne-Condo *

Worldwide GradeA Office Survey

2008-09-11T23:58:00.000+08:00

A survey by Colliers Int'l has ranked S'pore Grade A office space as the 7th most expensive in the world and 3rd in Asia-Pacific in June. The ave annual gross rent here was US$125.06, less than HK at US$213.68, London at US$207.42 and Moscow at US$167.29.

As for vacancy rates, S'pore 7.5% was ranked 13th in Asia-Pacific, below Perth at 0.3%, Seoul at 0.7% and Brisbane at 1.2%.

And in supply, S'pore was ranked 16th with 8.6mil sf of offices under construction, below Dubai at 42mil sf, Shanghai at 41.6mil sf and Guangzhou at 19.8mil sf.

US remained the most active office investment sales market, although volume has dropped 69% to US$28.6bil.

* AsiaOne-Office *

Good Response for Martin #38

2008-09-11T23:43:00.000+08:00

SC Global's FH loft apartments, Martin #38, received good response with all 30 private preview units taken up at prices of $1,881 - $2,494 psf (ave $2,130 psf), of which 60% are overseas buyers.

The 91-unit 15-storey project has mostly small units of 969 sf - 1,130 sf & a few larger ones of 1,335 - 1,485 sf.

This yr, deals at Robertson Quay area have been transacted at $1,130 - $1,840 psf.

* AsiaOne-Martin *

Fusionopolis Phase1

2008-09-11T23:33:00.001+08:00

Fusionopolis, comprises of 2 towers & a podium for its phase1, has abt 183k sf of retail space. Rental ranges fr $4.50 - $12 psf and >50% of retail space has been taken up and left abt 86,100 sf. Some of the tenants are Cold Storage, Fitness First, Starbucks, Harry, Raffles Medical Grp, etc. Frasers Hospitality will have 50 work loft units there.

Phase 2A & 2B are likely to be completed in 2010.

* AsiaOne-Fusion0polis *

Orchard Central Duplex Plan Scrapped

2008-09-07T22:28:00.002+08:00

Upcoming Orchard Central, near Somerset MRT, will replace its planned duplexes at ground floor with single storey units. The demand for such duplex stores has weakened due to slower economy, and there has been an intense competition for big brands as several malls are springing up.

Over at Ion Orchard, it has high-end labels such as Cartier, Louis Vuitton to front its duplexes. Industry experts pointed out that area near Orchard MRT is more attractive than Somerset MRT.

* AsiaOne-Orchard Ctrl *

July CPI At 6.5%

2008-08-26T17:40:00.002+08:00

Mth-to-Mth: 1.2% (Last mth: -0.3%)
Yr-to-Yr: 6.5% (Last mth: 7.5%)
1st 07mth 2008: 7.0%

* SingStats-CPI *

Home Prices Correcting Soon?

2008-08-13T20:52:00.001+08:00

The economy is slowing, and so is property sales, but private home prices are still holding partly due to low mortgage rates and developers' ability to hold off launches.

Experts are expecting a gradual correction over a year or more. Some investors will be forced to sell their units if their rentals cannot meet mortgage payments, as rentals drop when more units go on market. However, some investors are able to sell below developers' asking price and still make a profit. As for developers, they just have to sell enough units to keep revenue coming in.

S'pore's fundamentals still look good and stable, thus it is unlikely that prices would fall to 1997 or 2003 level.

* AsiaOne-Price , AsiaOne-SlowMkt *

2008 GDP Revised To 4-5%

2008-08-09T12:58:00.000+08:00

In his National Day message, PM Lee has cut the 2008 GDP forecast to 4-5% from 4-6%. For the 1st 6mths, S'pore growth was at 4.5%.

* CNA-NDMsg *

2Q08 HDB & Private Homes Data

2008-07-25T10:53:00.000+08:00

HDB Resale
Price Index: 4.5% (LastQ: 3.7%)

Private Homes
Price Index: 0.2% (LastQ: 3.7%) [Graph]

(a) Non-Landed: 0.1% (LastQ: 3.7%)
- CCR -0.1% (LastQ: 3.8%)
- RCR 0.7% (LastQ: 3.3%)
- OCR 0.9% (LastQ: 3.8%)
(b) Landed: 0.6% (LastQ: 3.9%)
(c) Rental: 2.5% (LasQ: 6.0%)
(d) Supply:
- 67,569 uncompleted units with 43,473 unsold
- 1,814 uncompleted units launched with 1,417 sold
- 108 completed units were sold
- 2,587 units TOP, vacancy rate at 6.1% (LastQ: 6.3%)
- Sub-sale: 440 units, 11% (LastQ: 398, 11.9%)

* HDB-2Q , URA-2Q , AsiaOne-2Q , AsiaOne-2009Supply *

***** 2 Jul 08: URA & HDB 2Q Flash Estimates *****
URA's flash estimate showed private home prices climbed by 0.4%, which was the smallest rise in abt 4yrs, and a drop from 1Q's 3.7%.

Over at HDB, flash estimate of the resale market showed an increase of 4.4% in the Resale Price Index (RPI), higher than 1Q's 3.7%. For 1H08, RPI increased by 8.2%.

* URA-Est , HDB-Est , AsiaOne-URA , AsiaOne-HDB *

Construction Costs Exceeds Land Costs

2008-07-24T18:40:00.004+08:00

Some 99yr condo sites are seeing their construction costs higher than their land costs, bcos of increasing construction prices and weak sentiments in private housing developments.

For mass-mkt developments, construction costs was $260 - $320 psf in 1Q08, but has risen to $280 - $350 psf in 2Q08. Thus a $200 - $250 psf condo site equates to a breakeven costs of $650 - $700 psf.

* AsiaOne-Costs *

June CPI At 7.5%

2008-07-24T08:27:00.002+08:00

Mth-to-Mth: -0.3% (Last mth: 0.2%)
Yr-to-Yr: 7.5% (Last mth: 7.5%)
1st 06mth 2008: 7.1%

Govt lifted this yr inflation forecast by 1% to 6% - 7%.

* SingStats-CPI , AsiaOne-CPI *

May RSI &CTI

2008-07-23T11:36:00.003+08:00

Retail Sale Index (RSI):
Mth-to-Mth: +4.7% (Excl motor vehicles: +8.5%)
Yr-to-Yr: +4.8% (Excl motor vehicles: +7.9%)

Catering Trade Index (CTI):
Mth-to-Mth: +8.3%
Yr-to-Yr: +9.6%

* SingStats-RSI & CTI *

2Q08 Advance GDP Estimates

2008-07-10T12:35:00.002+08:00

2Q08:
Yr-on-Yr: *1.9% (LastQ: 6.9%)
Qtr-on-Qtr: *-6.6% (LastQ: 15.6%)
*estimates

The slowest growth in 5yrs, with a sharp fall in biomedical manufacturing. However, Finance Minister Tharman Shanmugaratnam said that expected growth is still between 4 - 6% this yr.

* SingStat-GDP , AsiaOne-GDP *

HSBC Revolution Home Loan

2008-07-09T15:35:00.000+08:00

HSBC has come up with a revolution home loan with decreasing interest rate.

The new product is pegged to Sibor and to encourage loyalty, interest rate spread will be reduced by 10 basis points annually in the 1st 3yrs, ie from Sibor+0.75 to Sibor+0.55 from 3rd yr onwards.

* AsiaOne-HSBC *

*****

Bravo!

Bay Window & Planter Areas Included In GFA

2008-07-07T15:10:00.004+08:00

Bay windows and planter boxes have been exempted from GFA, but Developers have been selling these areas as internal spaces of a residential unit.

wef 7 Oct 2008, these spaces will no longer be exempted from GFA for residential projects, with exceptions for communal areas and non-residential developments.

* URA-GFA , AsiaOne-GFA *

KFH Buys Fewer Goodwood Residence Units

2008-07-02T11:46:00.004+08:00

Kuwait Finance House has decided to purchase 36 units, instead of 97 units, of Goodwood Residence and at a lower price of $2.8k psf, ie $400 psf less than the agreed price in Dec 07.

An analyst gauged that a fair price would be in the range of $2k to $2.9k psf.

* AsiaOne-Goodwood , RadarGaga-Goodwood *

More Infill Sites For Sale

2008-06-30T21:40:00.002+08:00

The Govt has put 8 small plots of 99-yr infill sites on sale, and the auction will be held on 21 Aug at M Hotel.

(1) Namly Ave (D10), 7,769sf - A 3-storey bungalow
(2) Ridout Rd (D10), 15,461sf - A GCB
(3) Braddell Rd (D13), 8,457sf - A 2-storey bungalow
(4) Upper East Coast Rd (D16), 7,365sf - A pair of 3-storey semi-D
(5) Tanah Merah Kechil Rd (D16), 4,360sf - A pair of 3-storey semi-D
(6) Jln Pari Burong (D16), 12,255sf - A 3-storey mixed landed
(7) Glasgow Rd (D19), 4,720sf - A 3-storey bungalow
(8) Jln Lempeng (D21), 14,157sf - A 3-storey bungalow

* SLA-Infill *

Buyers Liable For Unauthorised Works

2008-06-30T17:48:00.004+08:00

A couple paid 5% deposit for a $1.18m 1-1/2 storey house at Lor 105 Changi Rd, only to discover that extra storey was an unauthorised structure while the paperwork was in process.

They wanted the sellers to put it right and pay for the alterations, but the High Court threw out their application for damages with costs, as BCA's reply to the buyers' lawyers of the unauthorised A&A came after the S&P contract was signed. Moreover, the buyers did not have any special clause to cancel the deal should any unauthorised works was found. The risk of a property passed to the buyer once the option was exercised.

In a similar case in 1993, the Court of Appeal held that so long the BCA had not issued a notice, the unauthorised works did not constitute defects in title.

* AsiaOne-A&A *

May CPI At 7.5%

2008-06-23T23:29:00.001+08:00

Mth-to-Mth: 0.2% (Last mth: 1.2%)
Yr-to-Yr: 7.5% (Last mth: 7.5%)
1st 05mth 2008: 7.0%

* StatSing-CPI , AsiaOne-CPI *

Aussie Properties

2008-06-17T13:41:00.004+08:00

Ave capital growth in major Australian cites is abt 7.7%, with rental yields at 5%. With increasing population due to immigration and lower housing supply, property values in Sidney, Melbourne and Brisbane are set to go north.

Rents in Sidney rose 24% in 2007, and current yields vary fr 4%-6%. Over at Melbourne, prices have increased by 30% over the past 1.5yrs due to several universities located there. At Gold Coast, Queensland, ave rental yields are abt 5%, but are higher during peak periods. Tourists, however, usually lease for abt a week only.

When making a choice, buyers should know their objectives whether they are looking for capital growth or rental yields. Serviced apartments may offer a more hassle-free investment, and it is important to look for property marketeers/developers with good track record.

* AsiaOne-AussiePty *

Q1 Employment Data

2008-06-16T21:57:00.004+08:00

Employment: +73,200 (Last Q: +62,500)
Unemployment Rate: +2.0% (Last Q: +1.7%)
Resident Unemployment Rate: +2.9% (Last Q: +2.4%)
Retrenchment: +2,274 (Last Q: +1,966)
Openings: +38,200 jobs (Last Q: 37,400)

Nominal Earnings: +11% (Last Q: +4.3%)
Real Earnings: +3.6% (Last Q: +5.0%)
Productivity: -2.8% (Last Q: -3.7%)
Unit Labour Cost: +8.8% (Last Q: +6.0%)

* MOM-Employment , AsiaOne-Employment *

CPF Minimum Sum At $106k From 1 July

2008-06-16T20:41:00.005+08:00

This is nothing new, as announced in 2003, the min sum will increase gradually to hit $120k (in 2003 dollars) by 2013 to factor in inflation.

Revision wef 1 Jul 08:
Min sum in OA+SA or RA (MS): $106k (up fr $99.6k)
Min sum in MA (MMS): $29.5k (up fr $28.5k)
MA contribution ceiling (MCC): $34.5k (up fr $33.5k) [Excess will go to SA or RA]

Revision wef 1 Jan 09:
Withdrawal at age 55:
Min sum met: Remaining monies in accounts
Min sum not met: $5k or 40% of savings, whichever is higher (down fr 50%)

* CPF-Min Sum *

*****

The art and science of CPF ... headache.

Banks Raise Rates

2008-06-10T10:54:00.003+08:00

Banks have quietly increased rates for their new fixed-rate loans by as high as 1% recently. The higher fixed rates may encourage buyers to take up loans that are linked to Sibor or SOR which offer rates transparency. However, some banks have also raised their SOR-linked mortgages by as much as 1%.

At a glance ... ...
UOB, OCBC: 3yr fixed-rate fr 2.98% to 3.68%
Std Chart: 2yr fixed-rate fr 2.68% to 3.78%

*****

Property market gets another bucket of cold water.

3Q08 Employment Outlook

2008-06-10T10:17:00.004+08:00

Of the 713 bosses polled by Manpower Inc, 42% expect to increase headcount for 3Q08. This is down fr 65% polled for 2Q08. 5% expect a fall in headcount for next quarter compared to 3% polled for 2Q08.

Employers are still recruiting, but are more cautious because of economic slowdown. The most optimistic sectors are public administration & education, while the most pessimistic sectors are wholesale & retail, and mining & construction.

* Manpower-Survey , AsiaOne-Employment , CNA-Employment *

New York Home Sales Slowed

2008-06-05T15:57:00.004+08:00

Housing crisis that led to layoffs on Wall St and smaller bonuses for bankers, is now affecting Manhattan home sale. People are worried about their jobs and do not want to commit to mortgage payments.

Sale contracts have fallen by 21% and supply has increased 4.6% to 6,194 in 1Q08, compared to a yr ago.

* AsiaOne-NY *

En-bloc Re-launch For Sale

2008-06-05T15:32:00.003+08:00

4 estates re-launched for collective sale with a discount of up to 30%, but no changes to the reserve prices.

They are:
1) Cavenagh Gdn (Cavenagh): $450m - $455m (Last asking: $619m)
2) Novena Hill (Novena): $42m - $45m (Last asking: $60m)
3) Seletar Gdn (Yio Chu Kang): $50m - $55m (Last asking: $75m)
4) Hong Thye (Geylang): $13m (Last asking: $16m)

*AsiaOne-En-bloc *

*****

Talking about GSS (Great S'pore Sale) :D .

Developers --> Landlords

2008-06-04T11:07:00.004+08:00

Developers are becoming landlords in current soft market.

Vacant apartments are leased out to generate some income, instead of tearing down the enbloc estate to build new ones. Some enbloc owners benefited from such an arrangement, as they will have more time to find their next dream houses. Tenancy, however, is short term and renewable on monthly basis.

Lincoln Lodge: $2.7k - $4.5k, various sizes
Leedon Heights: $2.85k for 3BR
Sophia Court: $800 - $4k, various sizes

* ST-Landlords *

Smaller Studio On Sale

2008-06-04T10:08:00.005+08:00

Developers are building more studio units that are <500sf due to poor market sentiments and higher construction costs. This targets at yuppies & property investors by making homes more affordable.

* AsiaOne-Studio *

*****

Space is limited here as one can see that flats/condo are getting smaller & getting more expensive. We are on our way to living in 'capsule' (like Japan). Down the road, pple (esp the young ones) couldn't afford to buy houses and have no choice but to rent. Setting up a family will take a back seat then.

I would be interested in investing in a studio unit too as I foresee that I would only need a small space when my kids grow up and are not staying with us.

2008 GDP Forecast 4% - 6%

2008-05-23T23:45:00.004+08:00

1Q08:
Yr-on-Yr: 6.7% (LastQ: 5.4%)
Qtr-on-Qtr: 14.6% (LastQ: -4.8%)

"Export-oriented and sentiment-sensitive sectors will be hit more, while domestic-oriented sectors will perform better."

"MTI and MAS have revised the forecast for CPI inflation for 2008 from 4.5-5.5% to 5.0-6.0%."

* SingStat-GDP *

CPI Soared to 7.5%

2008-05-23T16:00:00.004+08:00

Surprise or no surprise, S'pore Apr CPI at 26-yr high. With oil & commodities still going crazily high, inflation is set to soar further.

Mth-to-Mth: 1.2% (Last mth: -0.1%)
Yr-to-Yr: 7.5% (Last mth: 6.7%)
1st 04mth 2008: 6.9%

* StatSing-CPI , AsiaOne-CPI *

*****

*sigh* sian ah ... ...

Hotel Site At Little India Has No Bidders

2008-05-22T11:26:00.003+08:00

This is the first time in 7yrs that a government land sales received no bids.

The 0.9ha site at Race Course Rd received no bids when tender closed yesterday. Consultants sited reasons such as image, location, crowds, poor market sentiments, etc. Higher construction costs would also be difficult for the budget hotel plot to generate good profits.

* AsiaOne-Hotel *

*****

I thot that was a good site for a budget hotel ... ... alas, the construction costs.

Couple's Financial Woes

2008-05-22T09:30:00.005+08:00

This couple made a booking for a 5Rm HDB DBSS flat at City View @Boon Keng, which cost $675k. Now, they found themselves having difficulties in securing a home loan.

The couple's total income is abt $6k and they paid an option fee of abt $33k for the flat. They applied for HDB loan but was rejected, and private banks were only willing to loan up to $400k.

HDB claimed that Mr Tan's director's fee could not be used for credit assessment, and his fiancee did not have >=3mths continuous employment from the same company. Thus the loan was not approved.

Should Mr Tan give up this flat, he will have to pay a penalty of $8k (25% of option fee) to the developer, as full refund is only applicable to applicants who do not meet HDB's eligibility requirements, not for other reasons like loan issue.

* AsiaOne-Couple , AsiaOne-HDB *

Developers Facing Tighter Credits

2008-05-19T15:36:00.005+08:00

Banks are charging more and lending less to property developers in Asia.

Although interest rates in S'pore and Hong Kong have fallen, but credit spreads on loans have shot up. Prior to sub-prime mortgage crisis, developers could borrow at <100 basis-point spreads, but now the spreads are at 200 to 400 basis points. Banks are also reducing the loan-to-value ratio from 70-80% to 50-60%. Thus, developers, especially those smaller players, are facing higher costs and lesser financing for their projects.

* AsiaOne-Funding *

Weaker Market In April

2008-05-18T16:44:00.002+08:00

Developers sales fell in Apr, with only 274 transactions and was about 9% lower than Mar08. The median prices seemed to have dropped by 8.9% from $1,035 psf in Mar to $943 psf in Apr.

Some projects were seeing a drop in their median price ($ psf):
(a) 79-unit Blu Coral: $872 in Feb, $802 in Mar, $657 in Apr
(b) 106-unit The Verve: $1,187 in Mar, $1.055 in Apr
(c) 625-unit The Quartz: $742 in Mar, $721 in Apr

The 659-unit The Parc, which was reported fully sold previously, have put 43 units on sale recently. These units were from buyers who did not want to exercise their options and thus forfeiting a quarter of their 5% downpayment.

However, over at the 56-unit Stadia, 52 units were sold between $750 - $1,000 psf.

* AsiaOne-SofterMkt *

Can't Find Your Usual Snack In Geylang?

2008-05-13T09:48:00.006+08:00

Most probably they have moved due to sky-rocket rentals, and some have set up their stalls elsewhere in Geylang.

Businesses between Lor1 and Lor25 are moving out as rents have doubled or even tripled, because of the 'red light districts'. Many men come from all over S'pore hang out at coffeeshops to look at or chat with the girls. Thus, many businessmen would want to open coffeeshops there due to high human traffic.

One casualty of high rental is Tanjong Rhu Pau. Its 1,600 sf space rental has increased from $9k/mth to $30k/mth. No choice, it has moved to a new location at Lor34 for just $4.5k/mth. Yong He Eating House, famed for its Taiwanese beancurd and youtiao, has to give up its 2,200 sf unit near Lor9 when the rent increased from $20k/mth to $40k/mth. Now, it pays only $28k/mth for a 3,600 sf unit at Lor27A. Though they may lose some customers, but given a cheaper rent, a better environment and ease of parking, it may just take time for the customers to find them and come back.

Where can you find them now ... ...
(1) Tanjong Rhu Pau - Corner of Guillemard Rd and Lor34.
(2) Yong He Eating House (Taiwanese beancurd & youtiao) - Lor 27A
So just keep your eyes wide open and hunt your favourite food/snack down in the lesser known Geylang lorongs.

* AsiaOne-Geylang *

Survival! - Suntec Mall Tenants

2008-05-08T12:05:00.006+08:00

Tenants at the new Galleria area of Suntec mall were fuming because of low human traffic such that they could barely cover their rentals. Some quit, some stopped paying rents while some were looking for alternatives, such as asking the management to reduce rents.

Ave rents at the Galleria was $24 psf, but some were paying as high as $35 psf. According to the tenants, a typical rent guide would be 15% - 25% of the sales.

However, traffic may improve with the opening of the underpass connecting to CityLink mall and the dismantling of the overhead bridge to Suntec City.

* AsiaOne-Suntec *

*****

Hv been there twice since the new Galleria was done up. I got to 'make an effort' to visit that area bcos it was not on the 'main road', and also out of curiosity that I paid it a visit. I do feel that human traffic will improve when the underpass is ready, as it will then divert the traffic there.

So far, I think Raffles City has been very successful with their expansion, and I've definitely visited that place more often now than before.

Hold on and good luck to Suntec tenants.

Fed Slashed Rates Again

2008-05-01T10:43:00.002+08:00

Fed cut rates by 0.25%, bringing federal funds rate to 2% and discount rate to 2.25%. This was the 7th time that the central bank had cut rates since Sep 07.

* CNN-Fed *

Ten Mile Junction Bid Rejected

2008-04-28T12:07:00.002+08:00

A mixed development site at Ten Mile Junction was not awarded as the higher of 2 bids was too low at $61 million ($162.40 psf ppr).

The 15,645.2 sqm site at Choa Chu Kang Rd/Woodlands Rd also houses the B.Panjang LRT station. GFA for residential and commercial are at 23,634 sqm and 11,259 sqm respectively for this mixed development which will not take off now.

* URA-CCK , AsiaOne-CCK , RadarGaga-CCK *

1Q08 HDB And Private Homes Data

2008-04-26T14:54:00.003+08:00

HDB Resale
Price Index: 3.7% (LastQ: 5.7%)

Private Homes
Price Index: 3.7% (LastQ: 6.8%)

(a) Non-Landed: 3.7% (LastQ: 7.2%)
- CCR 3.8% (LastQ: 7.5%)
- RCR 3.3% (LastQ: 7.7%)
- OCR 3.8% (LastQ: 7.0%)
(b) Landed: 3.9% (LastQ: 4.2%)
(c) Rental: 6.0% (LasQ: 6.8%)

From flash estimates (URA):

* AsiaOne-HomePrices , URA-1Q08 , HDB-1Q08 , HDB-Rental *

Mar CPI at 6.7%

2008-04-23T15:44:00.002+08:00

Mth-to-Mth: -0.1% (Last mth: 0.5%)
Yr-to-Yr: 6.7% (Last mth: 6.5%)
1st 03mth 2008: 6.6%

* SingStat-MarCPI , AsiaOne-CPI *

Another En-bloc Sale Off

2008-04-22T08:29:00.003+08:00

Enbloc sale of the 48-unit Finland Gardens in Siglap was called off after the majority sellers and the buyer, Sing Holdings, decided to pull the plug.

Sing Holdings bought the 98,309 sf FH estate for $504 psf in Nov 06, just before prices surged in early 2007. However, in Nov 07, the $49.5m deal was thrown out by STB for lacking 80% approval and that the price was not obtained in good faith. With market uncertainties looming, Sing Holdings decided not to drag on.

* AsiaOne-Enbloc *

Refinancing ABC

2008-04-20T11:59:00.000+08:00

(1) When to refinance
- (a) When savings is greater than the costs of refinancing.
- (b) When not selling your property within next 12mths, as you may have to pay redemption fees, refund legal subsidies or cashbacks.

(2) Costs of refinancing
- (a) Within lock-in period: Penalty is usually 1- 1.5% of the outstanding loan amount.
- (b) Refinance with the SAME bank, known as re-pricing or conversion, a conversion fee of $500 - $1,000 may apply. Some banks may offer 1 or 2 free conversions.
- (c) Other costs: Refund legal subsidies, freebies, etc; and incur another legal fees again when sign up with another bank.

(3) Which loan to take
- (a) Fixed rates. Rates are locked-in for 1 - 3yrs, thus any fluctuation in interest rates will not affect the loan interest.
- (b) Pegged rates. Banks rates are pegged to either in-house rates, Sibor or SOR. Sibor and SOR offer greater transparency in rates movement.
- (c) Penalties and refunds for switching.

(4) Budget for expenses
- (a) Do not over-expose to debt repayment as interest rates may rise later.
- (b) Set aside cash to cover at least 6 - 12mths of all necessary expenses such as utilities.

(5) Incentives
- (a) Partial loan repayment. Choose one with no penalty for partial repayment.
- (b) Ask for free conversion.
- (c) Rebates. Check if the cash rebate is refundable or is there any penalty within the lock-in period.
- (d) Free fire insurance.

* ST-Refinance , AsiaOne-HomeEquityLoan *

Spanish Dream Homes Vanishing

2008-04-18T14:50:00.003+08:00

Spain's government is enforcing a much neglected 1988 law, and telling thousands of owners that their properties on the coastline do not belong to them.

People from all over Europe have invested their money there. Though the houses, restaurants and hotels were built legally, but they are now not allowed to sell or leave them to their children. Those unlucky ones may even have their properties demolished.

* ST-SpainishHomes , HomesWW-SpanishHomes *

S'pore 3BR Rental 9th Highest Globally

2008-04-17T14:09:00.002+08:00

According to an annual survey by ECA Int'l, S'pore is the 9th most expensive place to rent a 3-bedroom apartment among the 92 surveyed locations worldwide.

Rents has increased by 33% last yr. The average rental of a unit at Orchard Road was US$4,460/mth, compared to US$3,364/mth in 2006. But this was still far below Hong Kong, which is in 1st position, where rental was about US$9,700.

The world's cheapest place to rent is in Karachi, Pakistan.

(1) Hong Kong
(2) Moscow
(3) New York
(4) Tokyo
(5) London
(6) Mumbai
(7) Seoul
(8) Caracas, Venezuela
(9) S'pore
(10) Ho Chi Minh

* ECA-WorldRental *

Sibor May Drop Further

2008-04-15T14:32:00.000+08:00

As Sing$ appreciates, interest rates may fall to levels last seen in 2003, and it could weaken demand for exports which would affect profits of companies.

Current 3mth Sibor is 1.25% and is expected to fall further to 0.75% - 1.00% by 4Q08. Its record low was 0.56% in Aug 03.

*****

Sibor: Singapore Interbank Offered Rate
- The rate at which banks lend to one another.
- Some mortgage loans are linked to Sibor for transparency in rates movement.
- Also an indication where the deposit and savings account rates are heading.

SOR: Sibor + bank's lending costs. Currently is at about 1.39%.

* AsiaOne-StrongerS$ , AsiaOne-Sibor *

Home Prices Drop Worldwide

2008-04-15T13:30:00.000+08:00

US housing slump, credit squeeze and high volatility in stock markets are driving real estate prices down worldwide.

In eastern Europe and the Baltic states, housing markets are fast cooling as western Europeans stop investing in properties in Warsaw, Tallinn, Estonia, etc. Prices in Spain had fallen by 8.8% in a yr.

Over at Britain, one of Europe's most robust housing markets, mortgage approvals had dropped by 31% last 2mths, compared to last yr. And in March, average prices had fallen 2.5%, the biggest fall since 1992.

In India, New Delhi and northern India had also seen prices fallen by 20% over a yr.

* AsiaOne-Housing *

Condo-Hotel Investment

2008-04-09T13:34:00.001+08:00

Owners of condo-hotel or condo-resort developments are facing cashflow problem as rental returns are far from expectations to pay off their mortgages. A part of the rental also goes to the operator who manages the hotel.

Hotel is a risky real estate investment as the occupancy rate swings. The markets for such developments are weak and thus owners might lose much should they sell.

* WSJ-CondoHotel *

Tulip Garden En-bloc Sale Off?

2008-04-08T11:09:00.000+08:00

Tulip Garden, a FH condo near Holland Rd, was bought by Bravo Building Construction for $516m last Jul. The sale was approved by STB in Feb, and the completion was due in 28 May.

However, Bravo could not pay up another 5% ($25.8m) by 7 Apr, and had requested for another deadline extension. Condo owners thus planned to call off the deal and pocket the 5% deposit ($25.8m) paid by Bravo.

Not only Tulip Garden, Bravo had also aborted an enbloc sale of Makeway View at Newton area earlier this year, and forfeited its $1.63m deposit. Completion for another enbloc sale, Pender Court, was also postponed.

* CNA-TulipGdn , ST-TulipGdn *

S'pore Lake District

2008-04-04T14:50:00.005+08:00

URA

A jab of life to the very quiet Jurong areas from Jurong East MRT to Jurong Lake.

Known as Jurong Lake District, it consists of 2 precincts, namely Jurong Gateway and Lakeside. Under Master Plan 2008 Review (Draft), the areas will develop into a commercial hub and have edutainment attractions for the family. Total potential area is 360 ha.

The 70 ha Jurong Gateway (Jurong East MRT area) was identified under the Concept Plan 1991 (together with Tampines & Woodlands) to sustain S'pore's growth. It will have a good mix of office, retail, residential, hotel, entertainment, F&B, etc; and set to be the biggest commercial hub outside the city.

Over at Lakeside, new waterways or walkways may bring the lake closer to the commercial hub, and it will be developed into a major leisure destination for the family and tourists. A lakeside village of F&B, retail, entertainment and hotels will also be created.

URA

* URA-JurongLake , URA-MorePics , AsiaOne-JurongLake *

*****

Hmmmm, sounds good ... ... looking forward to it.

Filial Singles To Get More CPF Housing Grant

2008-03-28T22:23:00.003+08:00

Under the usual Single Singapore Citizen (SSC) Scheme, single Singapore Citizens aged >=35 yrs can get a CPF Housing Grant of $11k to buy a HDB resale flat.

However, to encourage children to look after their parents, single S'pore citizens who buy a HDB resale flat with their parents may apply for higher CPF Housing Grant of $20k wef 1 Apr 08. This higher-tier Singles Grant also applicable to eligible singles buying DBSS flats with their parents.

* HDB-SingleGrant , CNA-SingleGrant *

Feb US New Home Sales Fell 1.8%

2008-03-27T09:39:00.005+08:00

New home sales fell 1.8% in Feb. Yr-to-yr median sales price down 2.7%, but mth-to-mth rose by 8.2% to $244k.

Inventory fell 2.1% to 471k homes, which would take 9.8 mths to clear.

* CNBC-NewHomes *

A New Mall In Serangoon Soon?

2008-03-27T09:08:00.003+08:00

Tender for a 99-yr LH white site above Serangoon MRT closed yesterday, with the highest bid at $800.9m, which surpassed expectations. With a GFA of 87,527 sm, this equates to about $850 psf.

A mall is likely to be developed there as it would bring the highest profit margin. With a net lettable area of about 600k sf, ave gross rent would be around $14 psf. The development will have to integrate with a new bus interchange and the MRT station.

* AsiaOne-S'goon *

Record Bid For Yishun Condo Site

2008-03-26T11:14:00.006+08:00

MCL Land has offered $213.5m (~$350 psf ppr) for a 99yr LH condominium site at Yishun when tender closed yesterday. The completed unit may sold at $830 - $900 psf, according to KF's Mr Nicholas Mak. Nearby 14-yr-old Orchid Park Condo units have been sold for an ave price of $460 psf.

* AsiaOne-Yishun *

*****

Buy a high floor unit to enjoy the reservoir's scenic view.

Feb US Home Sales Rebound

2008-03-25T11:08:00.003+08:00

Sales of existing homes rose 2.9% in Feb after 6 consecutive months of declines. However, this is still 23.8% below that in Feb 07. Median sales price has also fallen 8.2% in the past yr to US$196k, and was the biggest yr-on-yr drop on record since 1968.

* CNBC-HomeSales , CNA-HomeSales *

Feb CPI at 6.5%

2008-03-25T10:54:00.002+08:00

Mth-to-Mth: 0.5% (Last mth: 1.3%)
Yr-to-Yr: 6.5% (Last mth: 6.6%)
1st 02mth 2008: 6.6%

* SingStat-FebCPI , AsiaOne-CPI *

For Agents: New HDB Requirements for Resale Flats

2008-03-24T14:36:00.006+08:00

wef 1 May 08, housing agents handling resale flats have to complete a Resale Checklist with their clients and submit together with the resale application. These checklists will have to be done prior to granting/exercising an OTP.

This is part of HDB's efforts to ensure buyers/sellers are aware of HDB purchase and financing policies. Buyers/sellers without agents do not have to submit the checklists.

* HDB-Checklist *

*****

Gee, this reminded me of SOP, SOP and more SOP when things get more and more complicated to follow simply.

Thank you HDB for coming up with these checklists, your policies can sometimes be very confusing and complicated. In fact, buyer/seller w/o agent should do the same too, why only restrict to agents???

Fed Cut Interest Rate to 2.25%

2008-03-19T08:17:00.004+08:00

Fed cut its lending rate by 0.75%, less than the expected 1%, to 2.25%; the lowest since Feb 2005. The cost of direct loans from the central bank was also reduced to 2.5%. Stock rally and dollar rose against the yen.

Since Aug 07, when the US subprime mortgages effect was being felt, Fed has reduced its benchmark overnight rate 6x, and discount rate 8x. There were at least $195b in writedowns and credit losses so far.

Home prices continued to decline with more foreclosures. The S&P Case-Shiller home price index has dropped 9.1% from Dec 06.

* Bloomberg-Fed , CNBC-Fed , CNA-Fed , AsiaOne-Fed *

Hong Kong's Hot Properties

2008-03-18T11:49:00.003+08:00

Hong Kong's ultra high-end residential areas such as The Peak and the South Side are seeing houses selling at about HK$300m (S$53m) and are still moving north due to very tight supply.

This year, about 18 new houses are available at The Peak, 11 at the South Side and 165 at Mid-Levels. Only about 1,000 units in residential sector are estimated to be completed in 2008.

As inflation and rents are going up, more people choose to buy. In Nov 07, the number of S&P rose to 15,759, biggest jump in a single month since Jul 97.

* AsiaOne-HK *

Quiet Market

2008-03-18T11:08:00.002+08:00

In Feb, only 185 units of 343 units launched were sold, down significantly from Jan's 328 units sold. However, prices are still holding steady.

A peek at some units sold in Feb and their median prices:
- Aalto @Jln Kechil, 2units sold, $2,619 psf (Jan: 3units at median $2,078 psf)
- Cosmo @Guillemard Cres, 41units sold, $1,098 psf
- Waterfront Waves @Bedok Reservoir, 26units sold, $808 psf
- La Casa (EC) @Woodlands, 15units sold, $557 psf
- Martin Place Residences @Kim Yam Rd, 11units sold, $1,723 psf
- Blu Coral @Telok Kurau, 9units, $872 psf
- Mt Sophia Suites @Sophia Rd, 5units, $1,709 psf (Jan: 12units at median $1,719 psf)

Over at en-bloc sale, just 1 small deal was closed, compared to 25 deals in the same period a yr ago. Freehold Ban Guan Park @Holland Rd was recently sold for $31.1m, and 52unit FH Pastoral View near Novena MRT was put up for sale at a guide price of $95m, slightly below $1k psf.

* AsiaOne-Launches , AsiaOne-Enbloc *

Dwindling Property Market

2008-03-11T14:15:00.006+08:00

Kuwait Finance House did not exercise its OTP for 97 units of Goodwood Residence, which it had agreed to pay $818.4m in Dec 07. The median price of $3.2k psf would have set a record for that area.

Goodwood Residence, by GuocoLand, is located at former Casa Rosita site along Bukit Timah Rd, near Newton Circus. The 210-unit FH project sits on a 24,845 m2 site.

GuocoLand is in talks with KFH and may consider to grant a fresh options for the units.

* CNA-Goodwood , AsiaOne-Launches , GuocoLand-Goodwood , ST-GreenAward *

Feb US Jobs Fell by 63k, Highest in 5yrs

2008-03-07T22:17:00.005+08:00

For 2nd consecutive mth, and the biggest in 5yrs, payrolls fell by 63k.

This triggered further decline in US$, and higher oil price; and with credit squeeze, consumers are likely to reduce spending.

* CNBC-Payrolls , Bloomberg-Payrolls *

Circle Line Effect?

2008-03-02T12:43:00.003+08:00

(1) Bartley Station

(2) Lorong Chuan Station

(3) Marymount Station

(4) Dakota Station

(5) Mountbatten Station

Tightened Credit

2008-03-01T18:25:00.000+08:00

Banks are tightening their financing to property investment deals as global credit squeeze has raised awareness of risks, and several mega projects here have left less liquidity for others. S'pore law also caps banks' exposure to property-related loans (excl owner-occupied properties) to 35% of their total loans.

Given a softer property mkt now, banks are giving smaller loans to buffer against a fall in property values, and smaller or new players may find it harder to get loans for their property development.

* AsiaOne-Tightening *

Mar08 DC Revision

2008-03-01T17:39:00.003+08:00

Lastest DC rates revision may indicate a slower mkt as the changes were quite minimum except for 'Industrial & Warehouse' group.

Ave DC rates changed:
Group A - Commercial: 1.5%
Group B1 - Landed Residential: 0%
Group B2 - Non-landed Residential: 2.6%
Group C - Hotel & Hospital: 3.3%
Group D - Industrial & Warehouse: 16.8% (Only group to have jumped so much)

* URA-DC , AsiaOne-DC , RadarGaga-LastDC *

Jan CPI at Record High of 6.6%

2008-02-25T22:21:00.006+08:00

Mth-to-Mth: 1.3% (Last mth: 0.5%)
Yr-to-Yr: 6.6% (Last mth: 4.4%)
1st 01mth 2008: 6.6%

* SingStat-JanCPI , CNA-JanCPI *

Budget 2008: No More Estate Duty!

2008-02-16T16:11:00.004+08:00

Finally, the Govt removes estate duty on deaths wef 15 Feb 08. This was announced in Budget 2008 with other goodies handed out for business and individuals.

Prior to 15 Feb 08, for estate up to $12m, duty was payable at 5%; and 10% if it exceeds $12m, but with the following exemptions:
- Up to $9m for dwelling houses owned
- Up to $600k for other properties (incl CPF)
- CPF monies
- Funeral expenses deductible

* Budget 2008 *

S'pore - 7th Most Expensive Office Market

2008-02-14T14:20:00.006+08:00

Cushman & Wakefield's office costs survey showed that Singapore has jumped from #17 to #7 spot in the world's office market. Due to tight supply, prime rents has increased by 78% on average and the occupancy costs (rents + running costs) was abt US$130 psf/yr (S$15.44 psf/mth) on average in Singapore.

Worldwide rents went up by 14% as compared to 10% in 2006.

* CNA-OfficeCosts , AisaOne-WageCosts *

China Sq Food Centre Converting to Office

2008-02-14T13:47:00.002+08:00

In view of office crunch, the 3-storey China Sq Food Ctr at Telok Ayer St is going for a $10m conversion to office block, and has obtained provisional permission for the conversion. The office is likely to be ready in 4Q08, with 11k sf of retail space and 38k sf of office space. Rental is expected to be ard $16 psf/mth.

China Sq Food Centre was bought at $17m in 1995 under the Govt's China Sq Concept Plan. It has a 30yr lease and the GFA is ard 58k sf.

* AsiaOne-Office *

Property Launches In The New Year

2008-02-13T11:31:00.004+08:00

Launching soon
(1) Cosmo at Guillemard Lane: 47units, abt $1.1k - $1.2k psf
(2) Verve Residences near Jln Rajah: 108units, abt $900 - $1.1k psf
(3) Waterfront Waves at Bedok Reservoir: 405units, abt $750 psf
(4) Martin Place Residences at Kim Yam Rd: 302units, abt $1.8k - $2.3k psf

Launched
(1) Costa Este at Telok Kurau: 28units, abt $663 - $980 psf
(2) Palm Galleria and Espira Spring at Telok Kurau: abt $850 - $870 psf

Sold Out
(1) Casa Fortuna at Balestier: 106units, abt $1k psf
(2) Wilkie 80 at Wilkie Rd: 50units, abt $1.5k - $1.8k psf

* AsiaOne-Launches *

Dec CPI at 4.4%

2008-01-25T22:14:00.001+08:00

Mth-to-Mth: 0.5% (Last mth: 0.6%)
Yr-to-Yr: 4.4% (Last mth: 4.2%)
2007: 2.1%

* SingStat-Dec CPI *

Surprised Rates Cut

2008-01-23T08:59:00.000+08:00

Fed moved to cut interest rate by 0.75% to 3.5% last night, when global stock markets fell sharply for the past 2 days, amid fears of a US recession.

* Bloomberg-Fed , CNA-Fed , CNBC-Fed *

Sibor Rates Dropped to Lowest in 3yrs

2008-01-10T12:23:00.000+08:00

At 1.7625% yesterday, the 3-mth Sibor (S'pore interbank offered rate) was at its lowest level since Feb 05, and is expected to go down further by mid-yr.

As Sibor is the rate which banks lend cash to each other, it thus affects loans such as mortgages, corporate & small business loans. But this fall would also mean that fixed deposit rates and banks' net interest margins would drop.

With savings interest rates so much lower than inflation (ie -ve real interest rates), it may be better not to keep money in the bank, and a better time to borrow.

Sentosa Cove Iconic Condo Site for Sale

2008-01-10T11:04:00.000+08:00

The Pinnacle Collection was awarded to Ho Bee Investment & IOI Properties at $1.097b ($1,822 psf ppr). Hence break-even cost is abt $2.5k psf, and may sell at a price tag of abt $3k psf.

* AsiaOne-Pinnacle *

*** 19 Sep 2007 ***
For sale! For sale! Last iconic condo site of The Pinnacle Collection of Sentosa Cove.

The final iconic condo site went on sale yesterday at a reserve price of $964m ($1,600 psf ppr). Property consultants are expecting bids to be >$2k psf ppr and hence the selling price of the completed project is estimated at $3.2k - $3.8k psf.

The 99-yr leasehold site of 231,677 sf with plot ratio of 2.6, can build up to 357 units of apartments. At a height limit of 20 storeys, it is higher than CDL's The Oceanfront which is 15-storey high.

A glimpse of Sentosa Cove ... ...
(1) Central Marina Precinct
(A) Commercial
- The Quayside Isle
- One15 Marina Club
(B) Residential
- The Marina Collection, $817.66 psf ppr (6 Oct 06)

(2) Northern Residential Precinct
(A) Condo
- The Azure, $410.48 psf ppr (6 Oct 04)
- The Coast, $638.62 psf ppr (12 Jan 06)
- The Berth by the Cove, $350.65 psf ppr (20 Dec 03)
- The Oceanfront @ Sentosa Cove, $484.68 psf ppr (13 May 05)
(B) Landed
- Coral Island, $205.85 psf (20 Nov 04)
- Paradise Island, $260.00 psf (28 Jul 05)
- Treasure Island
- The Lakefront Collection, $378.00 psf (13 Sep 06)
- Villas @ Sentosa Cove
- Ocean 8
- The Berthside

(3) Southern Residential Precinct
(A) Condo
- The Waterfront Collection, $918.92 psf ppr (13 Dec 06)
- The Seaview Collection, $1361.33 psf ppr (12 Mar 07)
- The Beachfront Collection, $1799.78 psf ppr (30 Jul 07)
- The Pinnacle Collection, $1822 psf ppr (09 Jan 08)
(B) Landed
- Sandy Island, $617.00 psf (05 Mar 07)
- Pearl Island (Expressions of interest exercise closes on Oct 25)
Expectations:
CBRE: $127m - $144m ($800 - $900 psf)
- The Green Collection, $1099 psf (Sep 07)

* Sentosa Cove-Sale *

*****
Got lots of money and don't know where to spend??? Invest in a unit at Sentosa Cove ... living in a prestige neighborhood with magnificent seaview or soothing greenery. Sooooooo good ... ...

IDR Land Price Increasing

2008-01-04T11:43:00.000+08:00

Land price in Iskandar Development Region (IDR) continues to increase.

Last wk, a 45ha land at Nusajaya was bought by Dubai's Limitless Holdings & M'sia's state-owned UEM World at RM242m (RM50psf). This was higher than RM43psf, transacted just 4mths ago.

UEM World also owns 4,137ha of land at Nusajaya. At RM50psf, estimated UEM's real net asset value would be RM12.46 a share and its current share price is traded at abt RM3.90 only.

* AsiaOne-IDR *

Oil at US$100/barrel

2008-01-04T10:58:00.000+08:00

Welcome to the new year with oil price record at US$100/barrel.

A peek at past highs since 2004:
(1) 18 Oct 04: US$55.67 - Worries of low stockpiles in US b4 winter
(2) 29 Aug 05: US$70.85 - Hurricane Katrina severely disrupted production
(3) 15 Jul 06: US$78.40 - Tension in the M.East
(4) 01 Nov 07: US$96 - Worries abt tight global supplies, and tensions btw Turkey & Iraq
(5) 02 Jan 08: US$100 - Higher global fuel usage and unrest in Nigeria

* AsiaOne-Oil , CNBC-Oil *

*****

Joker? ... ... Lone Trader Caused $100 Price for Oil