Tag Archives: SLP International

Orchard retail space oversupply??

Posted on 28 May 2011 | Comments Off on Orchard retail space oversupply??

A number of shopping malls opened in Orchard Road in the last two years, increasing the prime shopping belt’s retail space by about 30 per cent, but not everyone at these new spaces has been doing well.

Only last week, tenants at 313 Somerset reportedly petitioned for lower rentals, complaining of poor business, raising questions over whether there is an oversupply of retail space in the area.

Mr Colin Tan, head of research and consultancy at Suntec Chesterton International, said: “If you go down to Orchard Road and visit some of these places, you’ll see that there is a high turnover of tenants. Tenants, which may have signed three years ago, are now finding it very hard to cope, so you see a lot of empty shops or hoardings or signs.”

There were signs of sluggish demand creeping in during the first quarter this year. Vacancy rates for Orchard Road retail space inched up to 6 per cent from 5 per cent from the fourth quarter last year.

Mr Nicholas Mak, head of research and consultancy at SLP International, said: “In the last two quarters, demand has not been as fast. As a result, some of the malls may have to adjust their rentals to attract new tenants or retain some of the existing ones.”

Others say the situation may not be so straightforward.

Senior manager for research at Cushman & Wakefield Ong Kah Seng said: “There has been a long dearth of major malls in Orchard Road – for more than a decade. The new malls actually refresh the identity of Orchard Road but require some time to be adjusted by market participants as they arrived as a surge after a hiatus.”

Source : Today – 28 May 2011

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Posted in Office / Retail / Industrial

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Property analysts expect shift in housing policy

Posted on 20 May 2011 | Comments Off on Property analysts expect shift in housing policy

Property analysts are expecting policy shifts on HDB flats and mass market private homes, with the appointment of Mr Khaw Boon Wan as the new National Development Minister.

They say Mr Khaw is known to be an effective game changer.

With housing affordability as a hot-button topic during the elections, the analysts foresee Mr Khaw as being forceful on this issue, at least early on.

Terence Wong, research co-head at DMG & Partners Securities said he would not be surprised if Mr Khaw shows determination to make housing more affordable for the young.

Colin Tan, research and consultancy director at Chesterton Suntec International, said Mr Khaw has his ‘work cut out for him’.

‘PM Lee did say that the changes will allow for a fresh slate that will look at everything from scratch, so it’s possible that Mr Khaw will look towards reshaping and rethinking policies,’ he added.

The Government may overhaul other policies – including its immigration policy – to prevent a further run-up in prices and to cater to the increasingly squeezed middle class, analysts say.

The aim will be to ensure prices rise – or fall – in line with general economic growth, with a focus on the HDB and mass market segments to ensure affordability, they add.

The Government had already pledged to review the $8,000 income ceiling for buying HDB flats – unchanged for the past 17 years for first-timers.

Nicholas Mak, SLP International research head  said that the Government is unlikely to introduce sweeping measures that would cause a price slump as this would unfairly penalise sellers in the resale market.

However, it might look to bring down prices of new build-to-order HDB flats so as to draw demand away from the resale market and stem further price gains.

Last year, private home prices rocketed 17.6 per cent, while HDB resale prices surged 14.1 per cent, upsetting first-time home owners priced out of the market.

Chesterton’s Mr Tan added that policies focused on helping the middle-income group satisfy their housing aspirations are also likely as the middle class represents ‘mainstream Singapore’.

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Posted in HDB, Property Market / Real Estate

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