Tag Archives: Singapore Property

Is another round of cooling measure on the way?

Posted on 24 May 2012 | Comments Off on Is another round of cooling measure on the way?

Much has been discussed in the Singapore media about National Development Minister Khaw Boon Wan’s remarks on shoe-box apartments and how he will not hesitate to intervene should there be clear evidence of unsustainable investor demand.

Singapore’s Private Property Index (PPI) finally eased 0.1 per cent in the first quarter, after five rounds of cooling measures to ensure property prices remain sustainable.

Shoe-box apartments, however, could possibly derail that plan.

Shoe-box apartments refer to residential units that are around 50 sq m in size that can hardly accommodate a family.

According to data from Savills, shoe-box apartments that are located in central areas are fetching the best rental yield in the first quarter – S$6.21 (US$5.00) per sq ft per month.

Therefore, buyers of such apartments are likely looking to rent them out due to the attractive rental returns.

A problem, however, could occur when such apartments are sprouting out in the suburbs.

As the suburbs is primarily home to Singaporeans, such apartments may lead to speculative buying without the intention of ever living in them.

This could push up property prices yet again.

So from the looks of it, another round of cooling measure could be on the way.

By: Khalil Adis, Singapore Editor, Property Report South East Asia

Source: PropertyReport – 2012 May 24

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Posted in Cooling Measures, Property Market / Real Estate

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Buoyant property market benefiting other sectors

Posted on 24 May 2012 | Comments Off on Buoyant property market benefiting other sectors

The buoyant property market has reaped benefits not only for developers in Singapore but also for related sectors such as interior designers and renovation firms.

Interior design firm SuMisura is one such company that has seen higher sales on the back of a property boom. The company, which performs design work for show flats, said such projects boosted the firm’s sales by 15 per cent last year.

Projects from developers accounted for 70 per cent of revenue last year, the company said, adding that the individual customers who made up the remaining 30 per cent were also inspired by their visits to the show flats it had designed.

“Once they see that and they feel it, and after buying the unit, they would want to come back to the very same interior designer to create that dream,” SuMisura director Angela Lim said. “We get a fair bit of spin-offs from doing show flats. They call us and ask us to do up their flats, whether new or old.”

Paris-based luxury designer Hermes also joined in the action this year, partnering high-end developer SC Global to design the interiors of an apartment at The Marq.

Ms Helene Dubrule, general manager for Hermes Home Division, said: “We will have plenty of projects in Singapore. We have a beautiful store in Liat Towers which will be renovated in the next few years … There is a very strong interest from Asian customers here.”

Another company benefitting from the buoyant property market is Kitchen Culture, whose mission is to create well-designed and highly functional kitchens.

Fitting residential projects with trendy kitchens make up more than half of Kitchen Culture’s business, the company said.

In the first four months of this year, the company clinched S$11 million worth of projects to supply property developers with kitchens in homes in Singapore and Malaysia.

Source : Today – 2012 May 24

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