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S’pore luxury home prices moderate in Q1

Posted on 7 Jun 2011 | Comments Off

Prices of luxury homes in Singapore have moderated in the first quarter of this year due to property cooling measures, data from CB Richard Ellis’ (CBRE’s) Asian Luxury Residential Capital Value Index showed on Monday.

The measures, announced in January, included raising the seller’s stamp duty and reducing credit available to those who already have outstanding mortgages.

CBRE said the increase in prices of luxury homes in the core central region moderated to 0.9 per cent quarter-on-quarter, while sales volume was also down by 20.4 per cent.

Prime rents in Singapore remained unchanged, but CBRE said they appeared to show signs of softening towards the end of the quarter, along with the slowdown of expatriate leasing demand.

Commenting on the outlook of luxury residential markets in Singapore, Joseph Tan, executive director of residential at CBRE, said that with the absence of further government initiatives in 2011, he expects minimal growth in both the inflow of foreign investors and home prices.

As such, CBRE said it expects the volume of luxury transactions in 2011 to be about 150 to 200 units, with prices likely to average at S$3,000 per square foot (psf) for resale projects and S$3,500 per square foot for new projects.

Overall in Asia, the CBRE index, which measures the capital value of luxury residential properties, rose by 5.5 per cent quarter-on-quarter in the first three months of this year. This was up from the 0.9 per cent registered in the previous quarter.

However, CBRE pointed out that most markets – including Beijing, Shanghai and key South East Asian cities – recorded a lower rate of price growth.

This came as sales slowed, following the introduction of measures directed at cooling residential property markets in the region.

Anton Eilers, executive director of CBRE Residential, Asia, said: “Home buying demand is expected to remain healthy as the regional economy continues to expand.”

He added that the cooling measures introduced in a number of major markets will moderate price growth of luxury residential property over the course of the year, and prices and rental growth.

Source : CNA – 6 Jun 2011

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Posted in Luxury Property, Property Market / Real Estate

Tagged CB Richard Ellis, Seller’s stamp duty, Singapore Luxury Home, Singapore Luxury Property, Singapore Property

Luxury property buyers ‘cautious about getting their next home’

Posted on 6 Jun 2011 | Comments Off

Sales of luxury properties have hit a sluggish patch in recent weeks.

That is according to industry players who said that the segment has underperformed despite the overall property boom last year.

Analysts said most buyers of luxury properties, who are mostly foreign investors, are turning cautious about buying their next multi-million-dollar home, due to the uncertain global economy.

Hamilton Scotts, for example, has seen slow sales, despite being one of the most anticipated super luxury properties to be launched in the last three years.

Out of the 56 units in the property, only 19 have been sold at between S$3,000 and S$3,700 per sq ft. The freehold property was launched in mid-2008, in the heat of the global financial crisis.

Sales of similar luxury properties have also been slow, with the exclusive development 8 Napier selling 27 out of the total 46 units. Its latest transaction was in April at S$3,000 per sq ft.

Hamilton Scotts was developed at a cost of more than S$100 million and it features a S$20 million en suite car porch. Each unit is selling at between S$8 million and S$10 million or an average of S$3,800 per sq ft.

Hamilton Scotts developer KOP Properties said luxury property buyers have been cautious with their cash.

“I have not shown people – the buyers and consumers – what this project really looks like. I think people are unsure about the car porch mechanism so I think we really need to show them the entire thing and to be able to fully showcase all the wonders of this project,” said Ms Leny Suparman, chief executive officer of KOP Properties.

“For the past 3 years, despite the fact that we didn’t have a show flat and we have been selling very well off the floor plans and the sales gallery in our office, I think we have done very well,” said Ms Suparman.

Mr Liang Thow Ming, head of residential services at Credo Real Estate, said sales of luxury properties tend to be slower when compared to mass market home sales.

“If you look at properties of these price tags somewhere in the region of S$8 million to S$10 million, you don’t expect these units to fly off the shelf anyway, so I think the pace of sales at Hamilton Scotts is comparable to the general luxury market,” said Mr Liang.

But analysts said the luxury property segment will cool off further, after recovering slightly last year from the property downturn during the global financial crisis.

In the last three quarters, prices of uncompleted non-landed core central region homes – which include most luxury properties – grew by 3 per cent.

This is a much slower growth compared with the 26 per cent increase in prices in the whole of 2007, during the last property boom.

Source : Today – 6 Jun 2011