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Record Private Home Sales

Posted on 20 Jul 2009 | Comments Off

1,825 sold in June even higher than during peak of the boom in Aug 2007

IT WAS another electrifying month for the private home market, with sales last month surpassing even levels seen at the height of the boom two years ago. The recession-defying numbers for yet another month point to surging confidence among buyers and sellers, and signal that the worst is likely over.

Developers sold 1,825 units last month, up from the 1,673 moved in May and almost 100 more than the number shifted in August 2007, the peak of the boom. Even more remarkable, the April to June sales of 4,714 units surpassed the total of 4,264 new private flats sold last year, said CB Richard Ellis.

It felt like the good old days were back for developers last month, with 1,637 units launched, 475 more than in May, Urban Redevelopment Authority data showed on Wednesday. That was the second highest number of launches since August 2007. Values are also responding to the heightened activity, with median prices at some projects last month higher than in May.

Property consultants cite the continued strong demand since February and June’s record sales to tip that the worst appears to be over. Some also expect a price recovery soon.

Colliers International’s Tay Huey Ying reckons that last month’s record number of primary home sales was driven by pent-up demand from both owner-occupiers and investors. This was helped by prices that remained largely at a discount from peak prices, even if they may have strengthened recently.

City-fringe homes were the most popular last month, with 867 sold, including the 330-unit 8@Woodleigh in Woodleigh Close, which sold out at a median price of $804 per sq ft. The only sell-out project in June, its small, affordable units were a key attraction, experts said.

The return of interest in high-end deals priced above $2,000 psf was also noted last month, said CBRE Research.

A unit in the Ritz-Carlton Residences went for $3,404 psf, while one in The Orchard Residences was sold for $3,299 psf. These made up the 23 high-end deals last month, up from 15 in May. That is still a very small number, but ‘a sign that there are high net worth individuals out there who are prepared to buy investment-grade properties despite uncertainties in the economy’, said Mr Li.

The narrower price gap is a major factor behind the bullish sentiment, especially among HDB upgraders, said Dr Chua Yang Liang, the firm’s head of research for South-east Asia and Singapore. Its number-crunching shows that the price gap between non-prime residential projects and HDB resale flats are now similar to 2004. ‘As long as this gap remains tight, this stream of HDB upgraders into the private residential market is likely to continue,’ he said.

Nevertheless, these buyers are very price-sensitive. ‘There is some upward price movement, but there is no shortage of supply,’ said one expert. DTZ’s head of South-east Asia research, Ms Chua Chor Hoon, added: ‘As the economy has not recovered, and many have taken pay cuts or were retrenched, demand, especially in the mass-market segment, is likely to be sensitive to price increases.’

Source: Straits Time 16 July 2009

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Posted in Property Market / Real Estate

Flurry of Activity as One-North Residences nears TOP

Posted on 17 Jul 2009 | Comments Off

The 427-unit One-North Residences, jointly developed by UOL Group, privately held sister company Kheng
Leong and construction group, Low Kheng Huat, will be getting its temporary occupation permit (TOP) in the coming months.

Typical of most projects that are close to completion, transactions here have spiked up.The 99-year leasehold project was launched in March 2007, when the market was still red hot. As the first residential project to be launched within One-North, a master planned development with work- live-play components located near Buona Vista, it naturally set a new price benchmark for the area. Two years ago, units were sold at an average price of $900 psf, with a number of units crossing the $1,000 psf mark, hitting a high of $1,238 psf. As at Dec 31, 2008, UOL reported that 99.3% of the units had been snapped up.

According to caveats lodged with URA Realis, three units ranging from 980 to 1,109 sq ft changed hands in the subsale market at $800,000 to $950,000. One owner of a 14th floor unit sold his 1,001 sq ft apartment for $860,256 or $859 psf in March. He had purchased the unit from the developer in December last year for $780,780 ($780 psf), hence making a handsome 10% gain in just a few months.

A seventh floor, 980 sq ft unit changed hands in the subsale market for $800,000 or $817 psf, which was 17.4% below the $969,052 ($989 psf) paid by the seller in April 2007. The third deal, a 1,001 sq ft ninth floor unit, changed hands in a subsale at $950,000 or $857 psf, slightly above the original purchase price of the seller of $915,098 or $825 psf.

Meanwhile, three neighbouring apartments on the fourth floor of the second block were put up for auction sale by Knight Frank on behalf of an owner in late February. Based on caveats lodged for the units, the owner had purchased all three studio apartments, from 570 to 614 sq ft, at $647,235 to $675,830. The purchase prices translate to an average of $1,055 to $1,159 psf. The opening prices for the three units at the auction were from $580,000 to $620,000. According to market sources, buyers were looking at prices closer to the $500,000 to $550,000 price range.

Rather than selling, the owner can lease the apartments when the project is completed, says Mary Sai, director of auction at Knight Frank. The market rent for studio apartments in the area is hovering around $2,500 a month, and based on the purchase price, rental yield works out to around 4.4% to 4.5%, she says. Given the location, which is within walking distance of two MRT stations — One-North and Buona Vista — potential tenants are those working in One-North, Science Parks, National University Hospital and the National University of Singapore, she says.

Source : The Edge – 13 Apr 2009