Category Archives: Property Price

Property prices worry National Development Minister

Posted on 9 Jun 2011 | Comments Off on Property prices worry National Development Minister

National Development Minister Khaw Boon Wan on Thursday sounded the alert on the spike in property prices in his latest blog posting.

He said things can go very wrong suddenly and gave three reasons.

Firstly, 35,000 private homes have already been sold – though still in construction – with payments in various stages of completion.

And there are 45,000 units in the pipeline, waiting to be built and sold.

Secondly, URA on Thursday announced its Government Land Sale Programme for the second half of the year which will inject another 8,000 private residential units into the market.

Together with committed investments, some 53,000 units will be looking for buyers over the next few years.

Lastly, Mr Khaw said the external situation is not exactly bullish.

The European sovereign debt crisis will take a long time to clear.

The Middle East crisis can still go ugly.

If that leads to a spike in oil prices and halts the fragile global economic recovery, the impact on Asia and Singapore will be direct and immediate.

Moreover, foreign buyers of these properties have been strong.

In the recent quarter, they made up 16 per cent of all buyers of these private properties.

Many Singaporeans also buy properties with the intention to rent them to foreigners who come here to live or work.

In the event of any external shock, both foreign demand and rental demand can fall quite quickly.

Mr Khaw said the impact can be serious if the drop in demand happens at a time when there is a substantial increase in supply.

Further, low interest rates will not remain so forever. Cost of borrowing and repayment must go up and households must factor this in.

Mr Khaw said he’s not the only one worried.

He cited a property analyst who recently said some property investors seem either “blissfully ignorant” of the massive supply that will hit the market from 2013.

Mr Khaw said market correction or any crash is not a given.

If all goes well, the economy will continue to grow and those who bought properties here will enjoy good returns when their units are completed in the next few years.

But no one is immune to mishaps.

With so much uncertainties, the Minister advises investors and upgraders to bear these considerations in mind when they go to show rooms and contemplate if they should sign up.

Source : CNA – 9 Jun 2011

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Unit at The Sail @ Marina Bay hits $2,999 psf

Posted on 2 Jun 2011 | Comments Off on Unit at The Sail @ Marina Bay hits $2,999 psf

Residents of the 1,111-unit The Sail @ Marina Bay enjoy a spectacular view of Marina Promenade.

There has been a flurry of transactions at The Sail @ Marina Bay, with prices playing catchup with those at Marina Bay Residences (MBR).

Last month, a unit at MBR hit an alltime high of $4,368 psf. A 2,368 sq ft apartment on the 46th floor was sold for $10.3 million on April 15. This trumped the previous record of $3,790 psf, which was achieved when a 1,959 sq ft unit on the 46th floor was sold for $7.2 million in Sept 2010.

At the 1,111-unit The Sail @ Marina Bay, prices breached the $3,000 psf level for the first time this year, when a 1,184 sq ft unit on the 61st storey was sold for $3.6 million ($3,040 psf) on April 4. Prices peaked in April 2008, when a 1,033 sq ft unit was sold for $3.5 million ($3,387 psf).

The two condominiums are located along Marina Boulevard and enjoy spectacular views of Marina Promenade. MBR is a 55-storey, 428-unit luxury waterfront condo located within the Marina Bay Financial Centre, a mixed development built by the consortium of Hongkong Land, Keppel Land and Cheung Kong (Holdings). The condo was completed last year. Meanwhile, The Sail, developed by City Developments and AIG Real Estate, was completed in 4Q2008, at the height of the global financial crisis.

Desmond Tan, group director of Dennis Wee Realty, says, “There is strong demand for both The Sail and MBR, as they are the only two condos with a good bay view. MBR commands a better price than The Sail, as it is farther away from the financial centre and nearer to the integrated resort. MBR is also newer. In terms of monthly rental, a studio unit at The Sail can fetch about $4,000, while a one-bedroom unit at MBR can command between $4,500 and $4,800.”

According to a private investor who owns several units at The Sail, “there’s no doubt that The Sail currently offers the best value for money. That’s why it continues to be the most highly transacted of the properties in the area”.

Between April 29 and May 10, The Sail saw three transactions, with prices ranging from $2,503 to $2,999 psf, according to caveats lodged with URA Realis.

A 2,077 sq ft unit on the 59th floor was sold for $6.23 million ($2,999 psf) on April 29. This represents a 169% gain over the last transacted price of $2.3 million ($1,116 psf) in 2004.

Subsequently, a 1,797 sq ft unit on the 16th floor changed hands for $4.5 million ($2,503 psf) on May 4.

A third transaction was for a 613 sq ft unit on the 24th floor, which was sold for $1.57 million ($2,559 psf) on May 9. This represented a 50% gain over the last transacted price of $1.04 million ($1,701 psf) in April 2007. Prior to this, the unit sold for $921,000 ($1,501 psf) in January 2007 and $726,240 ($1,184 psf) in December 2005.

Tan says, “Asking prices at The Sail are $3,200 to $3,500 psf currently. Most buyers are foreigners. We see quite a few buyers from China and Hong Kong.” He adds that the strong prices at MBR will have a positive impact on condos at One Shenton and The Cliff, al- though it is hard to quantify the extent of the impact, as “there is a big difference” in the view from condos along Shenton Way and from those at Marina Boulevard.

The latest transaction at the 341- unit One Shenton was for a 581 sq ft unit on the 20th floor, which changed hands for $1.28 million ($2,202 psf) on May 9. Prices at the condo hit a high of $2,757 psf in 2007, when a 1,894 sq ft unit on the 44th floor was sold for $5.2 million. The condo was developed by City Developments and completed earlier this year.

Another project completed this year is The Clift along Mccallum Street, a short walk from the Tanjong Pagar MRT Station. The latest transaction at the 312- unit condo developed by Far East Organization was for a 527 sq ft unit on the 17th floor. It was sold for $1.05 million ($1,998 psf) on May 9, representing a 44% gain over the last transacted price of $727,000 ($1,378 psf) in 2007. Prior to that, the unit sold for $577,786 ($1,095 psf) in 2006.

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Source : TheEdge – 2 Jun 2011

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Posted in Luxury Property, Property Market / Real Estate, Property Price, Property Transactions

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