Despite on-going economic uncertainty in Singapore, Japanese developers remain optimistic about investing in the city-state, reported The Business Times.
Most have credited their success to joint ventures with more established local developers.
However, the recent property cooling measures have affected some firms. For instance, sales have been dampened at several projects, with Mitsubishi East Asia’s Sky Habitat the most hit. The 509-unit condominium in Bishan sold just 30 percent or 154 units between its launch in April 2012 and March this year.
“After so many cooling measures from the government, now the residential market is not so hot, and we understand that,” said Takashi Utagawa, Managing Director at Mitsubishi Estate Asia.
However, the developer is staying optimistic and has partnered with CapitaLand again to erect another project which is expected to yield some 700 units next to Sky Habitat.
Meanwhile, the majority of Japanese players are undeterred by the measures.
Despite selling close to 99 and 83 percent of its Watertown and Q Bay Residences projects, Kenta Konishi, Managing Director at Sekisui House Singapore, said: “We cannot be too optimistic about the impact (of the cooling measures) so we have to be very careful to the response of the market.”
Shinji Yamana, Managing Director at ORIX Investment and Management, which developed Nassim Park Residences with UOL, stated: “As ORIX is planning to be here long term, I do not foresee these changes derailing our future plans here.”
Source : PropertyGuru – 2013 May 3
Close to 75 percent of all private homes launched in the first quarter of 2013 came from six popular 99-year leasehold condominium projects in the Outside Central Region (OCR) or 67.9 percent of all units sold, said Colliers International.
They include the 630-unit Q Bay Residences which sold 463 of the 520 units released in Q1 at prices ranging from S$823 to S$1,277 psf, and the 582-unit Urban Vista where 348 units were sold out of the 420 launched with prices ranging between S$1,193 and $1,692 psf.
The 912-unit D’Nest sold 699 of the 800 units launched at prices ranging from S$737 to S$1,299 psf, while Hillion Residences – a 546-unit mixed development in Bukit Panjang sold 191 units out of the 250 released at prices from S$1,225 to S$1,698 psf.
The 755-unit Trilinq sold 106 out of the 200 units released in March at prices that ranged from S$1,193 to S$1,843 psf, while the 810-unit La Fiesta sold 476 out of the 500 units launched at prices between S$956 and S$1,440 psf.
Factors which contributed to the success of these projects included location, competitive pricing and proximity to public transportation networks like MRT stations, noted the consultancy.
Sales were also bolstered by incentives such as rebates, early-bird prices and developers absorbing part of the additional buyer’s stamp duty (ABSD).
Moving forward, demand for private homes in the long term remains steady despite the slew of cooling measures implemented by the government in Q1 2013. This bullish outlook is supported by the new high-speed rail link between Singapore and KL, in addition to the upcoming Cross Island Line (CRL) and Jurong Region Line (JRL) by 2030.
Source : PropGuru – 25 Apr 2013