Release of 3rd quarter 2009 real estate statistics

Release of 3rd quarter 2009 real estate statistics

The Urban Redevelopment Authority (URA) released today the real estate statistics for the 3rd Quarter 2009.

Summary of Key Information for 3rd Quarter 2009

Annex	Title
Annex A-1	Comparison of Property Price Index for 2nd Quarter 2009 and 3rd Quarter 2009
Annex A-2	Price Indices of Non-Landed Properties by Locality and Completion Status
Annex A-3	Comparison of Rental Index for 2nd Quarter 2009 and 3rd Quarter 2009
Annex A-4	Rental Indices of Non-Landed Properties by Locality
Annex A-5	Median Rentals and Vacancy of Office and Shop Space
Annex A-6	Chart of Property Price Index by Type of Property
Annex A-7	Chart of Residential Property Price Index by Type
Annex B-1	Number of Unsold Private Residential Units from Projects with Planning Approvals
Annex B-2	Number of Unsold Private Residential Units from Projects with Planning Approvals by Market Segment
Annex C-1	Number of Uncompleted Private Residential Units Launched in the Quarter by Market Segment
Annex C-2	Number of Private Residential Units Sold in the Quarter by Market Segment
Annex D	Number of New Sale, Sub-Sale and Resale Transactions for Private Residential Units by Market Segment
Annex E-1	Stock & Vacancy and Supply in the Pipeline as at End of 3rd Quarter 2009
Annex E-2	Supply in the Pipeline by Development Status and Expected Year of Completion as at End of 3rd Quarter 2009
Annex F-1	Number of Executive Condominium Units Launched and Sold in the Quarter
Annex F-2	Sale Position of Executive Condominium Units with Pre-Requisites for Sale as at End of Quarter

SUMMARY

Prices of private residential properties increased by 15.8%, while those of office, shop and industrial properties decreased by 2.1%, 1.2% and 2.1% respectively in the 3rd Quarter 2009.

Rentals of private residential, office, shop and industrial properties decreased by 2.2%, 4.1%, 0.9% and 3.1% respectively in the 3rd Quarter 2009. The rates of fall of rentals for all property types in the 3rd Quarter 2009 have moderated compared with the respective rates of fall in the 2nd Quarter 2009.

As at 3rd Quarter 2009, there were 59,728 private residential units in the pipeline, comprising supply from projects that were already under construction and those that had been granted planning approval but were not under construction yet. For the office sector, there was a pipeline supply of about 1.09 million sq m Gross Floor Area (GFA) of office space from various Government and private land sources. Of these, about 32,200 private residential units and about 933,000 sq m GFA of office space were expected to be completed between 4th Quarter 2009 and 2012. This is based on developers’ declarations and the actual completion schedule may change from quarter to quarter as developers adjust their development plans or construction schedule according to market conditions.

PRIVATE RESIDENTIAL PROPERTIES

Prices

Overall prices of private residential properties increased by 15.8% in 3rd Quarter 2009, compared with the decline of 4.7% in the previous quarter (see Annexes A-1, A-6 & A-7).

Prices of non-landed properties increased by 15.9% in 3rd Quarter 2009, compared with the decline of 4.7% in the previous quarter. Prices of apartments increased by 16.2%, while prices of condominiums increased by 15.8%.

Prices of non-landed properties in Core Central Region1 (CCR) increased by 15.2% in 3rd Quarter 2009, and prices of non-landed properties in Rest of Central Region2 (RCR) and Outside Central Region (OCR) increased by 18.5% and 16.1% respectively (see Annex A-2).

Prices of landed properties increased by 14.9% in 3rd Quarter 2009, compared with the decrease of 4.7% in the previous quarter. Prices of detached, semi-detached and terrace houses increased by 15.6%, 13.4% and 15.1% respectively in 3rd Quarter 2009.

The prices of private residential properties are not uniform and vary from project to project. Home-buyers can view the data on individual uncompleted private residential projects at the following url: http://www.ura.gov.sg/realEstateWeb/price.jsp. The database also provides information on projects with units still available for sale.

Besides the data on the sale of uncompleted units direct from developers, home-buyers can also access information on all private residential property transactions on URA’s website at the following url: http://www.ura.gov.sg/realEstateWeb/transaction.jsp. This database, which is based on caveats lodged with the Singapore Land Authority (SLA), contains comprehensive information on the prices and floor areas of the units.

Rentals

Rentals of private residential properties3 fell by 2.2% in 3rd Quarter 2009, compared with the decrease of 5.2% in the previous quarter (see Annex A-3).

Rentals of non-landed properties in CCR, RCR and OCR fell by 2.1%, 2.3% and 2.3% respectively in 3rd Quarter 2009 (see Annexes A-3 & A-4).

In addition, URA also released data on the 25th percentile, median and 75th percentile rentals for individual private residential projects for 3rd Quarter 20094. The data on the rentals of individual private residential projects are available on URA’s website at the following url: http://www.ura.gov.sg/realEstateWeb/rental.jsp.

Supply in the Pipeline

As at the end of 3rd Quarter 2009, there was a total supply of 59,728 uncompleted units of private housing from projects in the pipeline5 (see Annex E-1). Of these, 34,120 units were still unsold. These comprised 2,960 units that had been launched for sale by developers and 10,453 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 20,707 units with planning approvals did not have the pre-requisite conditions for sale6 (see Annex B-1). Details of the number of unsold private residential units with planning approvals in the 3 market segments are given in Annex B-2.

Of the 59,728 units, 32,200 units were expected to be completed between 4th Quarter 2009 and 2012, of which 24,166 units were already under construction7. Developers had obtained planning approvals8 for projects making up the remaining 8,034 units (see Annex E-2). In addition, another 14,578 units are expected to be completed in 2013.

URA also released detailed data on supply in the pipeline by market segment, development status and expected year of completion at the following url: http://www.ura.gov.sg/real_estate/pipeline_supply. This is to enable the public to have a more comprehensive picture of supply coming on-stream over the next few years in the private housing market. Of the 59,728 uncompleted units of private housing from projects in the pipeline, 22,237 units, 17,288 units and 20,203 units were in CCR, RCR and OCR respectively.

In addition to the supply in the pipeline above, the Government had recently sold 5 sites for private residential developments through the Government Land Sales (GLS) Programme. These sites can yield about 2,000 private residential units which can be made available for sale in the next one year or so. To further ensure that there is enough supply of private housing to meet demand, the Government had announced on 14 Sep 09 that it will reinstate the Confirmed List and make available adequate sites in the Reserve List for the GLS Programme in the 1st Half of 2010. MND will announce the details of the GLS Programme towards the end of the year.

Launches and Take-up

A total of 5,899 uncompleted private residential units were launched for sale by developers in 3rd Quarter 2009, compared with 3,869 units in 2nd Quarter 2009. Of the 5,899 uncompleted units launched in the quarter, 1,223 units were in CCR, 1,959 units were in RCR, and 2,717 units were in OCR (see Annex C-1). Major residential projects launched in the quarter included Trevista at Lorong 3 Toa Payoh (541 units of a total of 590 units), Meadows @ Peirce at Upper Thomson Road (400 units of a total of 479 units), The Interlace at Alexandra Road (360 units of a total of 1,040 units) Hundred Trees at West Coast Drive (350 units of a total of 396 units) and Waterfront Waves / Waterfront Key at Bedok Reservoir Road (343 units of a total of 842 units).

In 3rd Quarter 2009, 5,510 uncompleted private residential units were sold by developers, compared with 4,521 units in 2nd Quarter 2009. Of the 5,510 uncompleted units sold in the quarter, 1,148 units were in CCR, 1,853 units were in RCR, and 2,509 units were in OCR (see Annex C-2). Developers also sold 68 completed private residential units in 3rd Quarter 2009.

Sub-sales

The total number of sub-sales was 1,057 in 3rd Quarter 2009, compared to 1,309 sub-sales in the previous quarter. In percentage terms, sub-sales accounted for 9.2% of all sale transactions in 3rd Quarter 2009, compared to 12.9% in 2nd Quarter 2009. The number of sub-sales in CCR in 3rd Quarter 2009 accounted for 15.9% of the property sale transactions in this area in the quarter, compared to 20.5% in the previous quarter. The percentage of sub-sales in 3rd Quarter 2009 for RCR, at 8.3%, was lower than the 10.8% in the previous quarter. In OCR, the percentage of sub-sales in 3rd Quarter 2009 was 6.5% which was also lower than the 9.1% in the previous quarter (see Annex D).

Stock and Vacancy

A total of 3,930 private residential units were completed (granted TOP) in 3rd Quarter 2009. Major residential projects completed in the quarter were The Centris at Jurong West Central 3 (610 units), Casa Merah at Tanah Merah Kechil Avenue (556 units) and Ferraria Park Condominium at Flora Drive (472 units).

The vacancy rate of completed private residential units increased from 5.9% as at the end of 2nd Quarter 2009 to 6.2% as at end of the 3rd Quarter 2009 (see Annex E-1).

Executive Condominiums

As at the end of 3rd Quarter 2009, there were no Executive Condominium (EC) units in the pipeline. All available EC units have been sold (see Annexes F-1 & F-2). To meet demand from home-buyers, in particular HDB upgraders, HDB will release more sites for EC housing developments in the 1st Half 2010 GLS Programme. MND will announce the details of the GLS Programme towards the end of the year.

The total stock of completed EC units was 10,430 units as at the end of 3rd Quarter 2009. As at the end of 3rd Quarter 2009, the vacancy rate was 1.0%, compared with the vacancy rate of 0.7% as at the end of the previous quarter (see Annex E-1).

OFFICE SPACE

Rentals

The rentals for office space in Singapore fell in 3rd Quarter 2009. Overall rentals for office space, based on leases which had commenced, decreased by 4.1% in 3rd Quarter 2009, compared with the decrease of 7.7% in 2nd Quarter 2009 (see Annex A-3).

The median rental for “Category 1”9 office space, based on leases which had commenced, was S$9.60 per square foot per month (psf pm) in 3rd Quarter 2009, lower than the median rental of S$10.60 psf pm in 2nd Quarter 2009. In comparison, the median rental for “Category 2”10 office space was S$4.87 psf pm in 3rd Quarter 2009, lower than the median rental of S$5.08 psf pm in 2nd Quarter 2009 (see Annex A-5). As “Category 2” office space accounts for about 80% of all office space in Singapore, the rental for such space is more reflective of the typical rental paid by office tenants in Singapore. These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases had commenced in 3rd Quarter 2009.

The median rentals for “Category 1” and “Category 2” office space based on rental contracts signed in 3rd Quarter 2009 were S$9.50 and S$4.89 psf pm respectively (see Annex A-5). These statistics were compiled based on IRAS’ records of rental contracts which were signed in the reference quarter, regardless of whether or not the leases commenced in the reference quarter11.

Prices

Prices of office space decreased by 2.1% in 3rd Quarter 2009, compared with the 3.9% decrease in the previous quarter (see Annex A-1).

Supply in the Pipeline

As at the end of 3rd Quarter 2009, there was a total supply of about 1.09 million sq m GFA of office space in the pipeline. Of the total pipeline supply of office space, about 933,000 sq m were expected to be completed between 4th Quarter 2009 and 2012. More detailed data on pipeline supply of office space by development status and expected year of completion are at Annex E-1 and E-2.

Apart from office space, as at the end of 3rd Quarter 2009, there was a total supply of about 407,000 sq m of business park space from projects in the pipeline12 from Government and private land sources which were expected to be completed between 4th Quarter 2009 and 2012. Business park space primarily caters to non-pollutive industries and businesses that engage in high-technology, research and development (R&D), high value-added and knowledge-intensive activities. However, some of the business park space could be used for selected office uses such as backroom operations of companies.

Stock and Vacancy

The amount of occupied office space increased by 3,000 sq m (nett) in 3rd Quarter 2009, as compared with the 23,000 sq m decrease in the previous quarter. A total of 116,100 sq m of office space were completed (granted TOP) in 3rd Quarter 2009. This included the newly completed Mapletree Anson at Anson Road (31,000 sq m), 71 Robinson Road (22,600 sq m), transitional offices at Scotts Road (12,400 sq m) and Anthony Road (11,200 sq m).

The island-wide vacancy rate of office space was 12.2% as at the end of 3rd Quarter 2009, higher than the 10.8% as at the end of 2nd Quarter 2009. Similarly, the vacancy rate for “Category 1” office space increased to 6.5% as at the end of 3rd Quarter 2009, from 6.0% as at the end of 2nd Quarter 2009. The vacancy rate for “Category 2” office space as at the end of 3rd Quarter 2009 was 13.4%, compared to 11.9% as at the end of 2nd Quarter 2009 (see Annex A-5).

SHOP SPACE

Rentals

The overall rentals for shop space in Singapore, based on leases which had commenced, decreased by 0.9% in 3rd Quarter 2009, compared with the 2.0% decrease in the 2nd Quarter 2009 (see Annex A-3). The median rental for shop space in the Orchard Planning Area (Orchard), Rest of City Area (RCA)13 and Outside City Area (OCA) also decreased slightly to S$10.29, S$6.35 and S$5.41 psf pm respectively in 3rd Quarter 2009 (see Annex A-5). These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases commenced in 3rd Quarter 2009.

The median rentals for shop space in Orchard, RCA and OCA based on all rental contracts signed in 3rd Quarter 2009, regardless of whether or not the leases commenced in the quarter, were S$10.23, S$6.58 and S$5.43 psf pm respectively (see Annex A-5).

Prices

Prices of shop space decreased by 1.2% in 3rd Quarter 2009, compared with the 1.4% decrease in the previous quarter (see Annex A-1).

Supply in the Pipeline

As at the end of 3rd Quarter 2009, there was a total supply of 524,000 sq m GFA of shop space from projects in the pipeline14, from Government and private land sources. Of the total pipeline supply of shop space, about 416,000 sq m were expected to be completed between 4th Quarter 2009 and 2012. More detailed data on pipeline supply of shop space by development status and expected year of completion are at Annex E-1 and E-2.

Stock and Vacancy

The amount of occupied shop space increased by 68,000 sq m (nett) in 3rd Quarter 2009, compared with the 23,000 sq m increase in 2nd Quarter 2009. A total of 39,700 sq m of shop space were completed (granted TOP) in the 3rd Quarter 2009. This included the newly completed City Square Mall at Kitchener Road (27,000 sq m).

The island-wide vacancy rate of shop space was 6.0% as at the end of 3rd Quarter 2009, compared to the 7.5% vacancy rate as at the end of 2nd Quarter 2009. The vacancy rates for shop space in Orchard, RCA and OCA as at the end of 3rd Quarter 2009 were 5.9%15, 7.2% and 5.6% respectively. In comparison, the vacancy rates for shop space in Orchard, RCA and OCA as at the end of 2nd Quarter 2009 were 16.2%, 7.8% and 5.6% respectively (see Annex A-5).

INDUSTRIAL SPACE

Prices and Rentals

Prices of multiple-user factory space fell by 1.8% in 3rd Quarter 2009, compared with the 4.5% decrease in the previous quarter (see Annex A-1). Rentals of multiple-user factory space also fell by 2.6%, compared with the 4.2% decrease in the previous quarter (see Annex A-3).

Supply in the Pipeline

As at the end of 3rd Quarter 2009, there was a total supply of 2.84 million sq m GFA of factory space from projects in the pipeline16, from Government and private land sources. Of the total pipeline supply of factory space, about 2.68 million sq m were expected to be completed between 4th Quarter 2009 and 2012. More detailed data on pipeline supply of factory space by development status and expected year of completion are at Annex E-1 and E-2.

Stock and Vacancy

The amount of occupied factory space increased by 297,000 sq m (nett) in 3rd Quarter 2009, higher than the increase of 139,000 sq m (nett) in 2nd Quarter 2009. A total of 387,500 sq m of factory space were completed (granted TOP) in 3rd Quarter 2009.

The vacancy rate of factory space was 8.1% as at the end of 3rd Quarter 2009, higher than the vacancy rate of 7.8% as at the end of 2nd Quarter 2009.

URA’s REAL ESTATE INFORMATION SERVICE

More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy position of the various property sectors can be found in the Real Estate Information System (REALIS), an online database of URA.

Subscribers of REALIS can obtain the information from the system after 12.30 pm today. More information on REALIS can be found at http://spring.ura.gov.sg/lad/ore/login/index.cfm. You can also contact the REALIS hotline at 6329 3456.

1	Core Central Region comprises postal districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at: http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf
2	Rest of Central Region comprises the area within Central Region that is outside postal districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at: http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf
3	URA’s rental data for private residential properties are compiled based on IRAS’ records of rental contracts for such properties where leases commenced in the reference quarter.
4	The rental data released are for private residential projects where there were at least 10 rental transactions in the reference quarter.
5	Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.
6	Refers to uncompleted private residential developments without pre-requisites for sale but with Written Permission or Planning Permission granted. The sale licences could be obtained within 5 working days and building plan approvals could be obtained within 7 working days from the date of application for cases where clearances from various technical agencies are obtained and relevant documents are in order during formal submissions.
7	The expected completion dates of private residential projects in the pipeline are provided by the developers of these projects, and not estimated by URA.
8	Planning approvals refer to either Provisional Permission (PP) or Written Permission (WP). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.
9	Refers to office space in buildings located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area. A map of Central Region showing the locations of Downtown Core and Orchard Planning Areas is available in URA’s website at: http://spring.ura.gov.sg/lad/ore/login/map_central_region.pdf.
10	Refers to the remaining office space in Singapore which are not included in “Category 1”
11	Tenancy agreements for office space are usually signed up to 3 months before lease commencement. The methodology and sample size may differ from those used by some property consultants. For example, URA only uses actual contracted rentals in the computation of the statistics, whereas some property consultants use estimates of achievable rents in addition to actual contracted rentals in the computation of their statistics.
12	Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.
13	A map of Central Region showing Orchard and RCA is available at http://spring.ura.gov.sg/lad/ore/login/map_city_area.pdf.
14	Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.
15	The sharp drop in vacancy rate in Orchard Planning Area in 3rd Quarter 2009 could be attributed to retailers physically moving into ION Orchard and Orchard Central, following the completion of the two shopping malls in 2nd Quarter 2009.
16	Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.

Source : URA – 23 Oct 2009