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Monthly Archives: March 2010

New private home price index launched in Singapore

Posted on 25 Mar 2010 | Comments Off

There is a new price index to provide information on the state of the residential market in Singapore.

The index was developed by the National University of Singapore’s Institute of Real Estate Studies and is the first such index by an academic institution here.

The Singapore Residential Price Index, or SRPI, which tracks month-on-month price movements, will provide a resource for the development of property derivatives.

That will then help to expand the suite of financial products offered in Singapore.

Organisations like real estate firms and financial institutions can use the index to help them better manage their direct real estate exposure and to hedge their portfolio risks.

The index looks at factors like the unique location of each property and volume of transactions to consider the price movement of the market.

One unique feature of this new index is that it uses a fixed basket of properties to determine the data.

The basket comprises 364 private residential projects located across 26 postal districts in Singapore.

The composition of the basket will be adjusted bi-annually to reflect the changes in the completed stock of private non-landed residential properties.

The basket will be next revised in December 2011.

The NUS hopes its new index would complement the existing one by the Urban Redevelopment Authority that is released quarterly.

Source : Channel NewsAsia – 24 Mar 2010

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Posted in Property Market / Real Estate

Tagged Singapore Property, Singapore Property Market, Singapore Property Prices, Singapore Residential Price Index

S’pore office property market bottoming out: Jones Lang LaSalle

Posted on 25 Mar 2010 | Comments Off

The Singapore office property market appears to be bottoming out and the trend of falling rents is stabilising, according to data from consultants Jones Lang Lasalle.

This is even though its preliminary estimate of average Prime Grade A gross effective rent in the central business district declined marginally by 0.6 per cent on quarter to S$7.75 per square foot per month in the first quarter.

Office rents have been on a declining trend since the third quarter of 2008.

Jones Lang LaSalle said the return of market activity from the fourth quarter last year continued to be instrumental in bringing rentals closer to their bottom.

Most landlords in the market were able to maintain their rentals.

In terms of demand, Jones Lang LaSalle said vacancy has dropped in the first quarter of this year in several key market segments.

These include Prime Grade A offices where the vacancy rate dropped from about four per cent in the fourth quarter last year, to about three per cent in the first quarter of 2010.

These mostly resulted from the success of prominent Prime Grade A office buildings such as Republic Plaza, UOB Plaza 1, Capital Square and One George Street in terms of securing tenants and reducing vacancies.

Going forward, the consultant said with the potential oversupply of office space and increased competition amongst landlords, the high end segment of the office market will be able to command premium over existing older buildings as demand finally returns to the market.

Source : Channel NewsAsia – 24 Mar 2010