Tag Archives: Scotts Square

Market for luxury homes muted

Posted on 25 Apr 2011 | Comments Off on Market for luxury homes muted

The luxury residential property sector should be performing quite consistently this year but luxury residential property prices look unlikely to climb to pre-crisis levels anytime soon, according to market-watchers.

“Current prices for luxury residential property prices per square feet (psf) are in the S$2,500 to S$4,500 range,” said Mr Liang Thow Ming, executive director and head of residential services at Credo Property Services. “This is still some way off the record high of S$5,000 psf registered in 2007.”

Mr Liang’s pick for the star performer this year would be the mid-market segment, where he expects “a higher percentage increase in overall prices”.

He feels that the demand for luxury residential property – “which is more dependent on foreign buyers than any other segment” – is “unlikely to pick up substantially due to the geo-political situation in the world”.

Another reason could be the fact that en bloc sellers are “setting certain high expectations” in terms of prices, he said, adding that land supply for luxury residential developments in the Core Central Region (CCR) is very much dependent on collective sales.

Higher asking prices and the limited supply of land could put a damper on the number of luxury developments to be rolled out.

Similarly, market-watchers like UOB KayHian’s Mr Vikrant Pandey are not bullish, despite the shift in buying interest toward the CCR and the Rest of Central Region (RCR) for last month, as indicated by figures from the Urban Redevelopment Authority (URA).

The latter’s flash estimates showed that private home sales last month increased 25 per cent to 1,386.

Mr Pandey explains that the surge last month could be a temporary one – “a result of pent-up demand from February as buyers had held back on their property purchases due to the Chinese New Year”.

“While the month-on-month sales have picked up, the year-on-year volumes remain weak, indicating that measures are slowly but steadily taking effect,” he added.

“Market sentiment is cautious,” said Mr Danny Low, chief operating officer and executive director of Heeton Holdings. Heeton, along with KSH Holdings and TEE International, last week launched The Boutiq, a luxury residential development on the site of the former Mitre Hotel at Kiliney Road.

To date, The Boutiq has sold 39 units of the 52 units launched in Phase One at an average price of S$2,350 psf – a result that Mr Low said met expectations.

He added that he “hopes the European and United States markets will recover in speed, so that investors will come back”.

Goldman Sachs is slightly more optimistic about the luxury sector. In a recent research note on the Singapore property sector, analysts Paul Lian and June Zhu wrote: “Luxury is seeing renewed interest, mainly from foreign buyers.”

“16 units (versus only one unit in February) were sold above S$3,000 psf,” it said. “Of note, one unit at Scotts Square was sold at S$4,334 psf and one unit at Boulevard Vue fetched S$4,308 psf.”

Other luxury residential developments to be launched this year include Heeton’s iLiv@Grange and City Development’s Jean Nouvel Residences at Anderson Road, and Buckley 9 & 11.

Source : Today – 25 Apr 2011

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New private home sales surge in March

Posted on 16 Apr 2011 | Comments Off on New private home sales surge in March

The number of new private homes sold last month surged 25 per cent from February, snapping four straight months of decline, as investors and upgraders alike turned out in force, seemingly unruffled by the cooling measures announced in January.

The Urban Redevelopment Authority (URA) said on Friday developers sold 1,386 private homes last month, compared with 1,105 in February. Including Executive Condominiums, the total number hit an even more impressive figure of 1,543.

Strong economic growth and persistently low interest rates have kept sentiment bullish on property in general, even after four rounds of measures in 16 months to cool the housing market.

But analysts said they were still surprised by the stellar performance in March, saying they had expected sentiment to dampen in the wake of the cooling measures and the Japanese disaster.

Mr Chua Chor Hoon, senior director of research at DTZ, said: “In February, the numbers were lower because it is a shorter month and coupled with the Chinese New Year, so the period was shorter for people to buy. That could be one of the reasons why the number in February was low, and in March, there’s this feel-good sentiment.”

The URA said that, while the take-up rate of private homes had increased in March, on a quarterly basis, the sales had fallen 21 per cent.

In March, the suburban or outside-central region saw the most sales, with 631 units. Around 492 units were sold in the city fringe areas, while 263 units were sold in the core central region.

PropNex corporate communications manager Adam Tan said: “Investors seem to have taken the Jan 13 cooling measures in stride, with renewed demand in both the mid- and high-end markets. Excluding ECs, the number of units sold in the mid-range market, or $1,200 to $2,499 psf range, was 670, or 48.3 per cent of the total.

“The high-end market, with units costing $2,500 psf or more, recorded 75 units, or 5.4 per cent. Both markets saw the highest levels reached for this year and reflect a returning investor confidence in the mid-to-high-end property market here.”

Mr Tan added the strong response to the launch of H2O Residences in Sengkang, as well as the 157 EC units sold, indicated sustained interest in private property by HDB upgraders.

“Including ECs, 798 units, or 51.7 per cent of the total, were sold below the $1,200psf mark,” he said.

URA data showed that Scotts Square fetched the highest price, with a unit sold at S$4,334 psf.

At the other end, a unit at The Canopy, an EC, sold for S$530 psf. H2O Residences was the most popular project in March, with 255 units sold.

Source : Today – 16 Apr 2011

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