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Seventeen new condos primed for launch in 2013

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AROUND 17 new condominiums comprising almost 7,500 private homes in all are being prepared over the next few months.

The bumper supply stems largely from the significant release of land from the Government Land Sales (GLS) programme over the past year, although private sites are also in the mix.

Market experts are keenly watching to see how some of the more high-profile projects fare, given that the tough cooling measures imposed last month have added an air of uncertainty to the market.

There will be plenty of choice for buyers, with projects in estates across the island from Tanah Merah, Pasir Ris and Hillview to upmarket areas like Marina Bay being primed for launch.

The larger projects lining up for release include the 912-unit D’nest in Pasir Ris Grove, Bartley Ridge in Mount Vernon Road, which has 868 units, and the 755-unit Trilinq in Jalan Lempeng.

The Trilinq showflat will be open today, with preview sales expected early next month. Indicative average prices are about $1,500 per sq ft.

While Q Bay Residences in Tampines enjoyed strong sales despite being launched after the curbs, market watchers are waiting for a second successful launch to set a positive market trend.

Savills Singapore research head Alan Cheong said the healthy take-up of units at d’Leedon after a price cut showed buying sentiment was still positive, and that there is still underlying demand.

“But the take-up rates are unlikely to be as fast as last year. It might take six months for 50 to 70 per cent of a mass market project to be sold now. Previously, 80 to 90 per cent of a smaller-sized project could be sold in three months,” he noted.

International Property Advisor chief executive Ku Swee Yong said high-end homes might still face a uphill battle in lifting sales.

“The overall quantum for prime homes in districts 9, 10 and 11 is generally more than $3 million and is not within reach of the first-timer and upgrader segments,” he added.

A test might come in October when the mega Marina One project, developed by Malaysia’s Khazanah Nasional and Singapore’s Temasek Holdings as part of a land swop agreement, is launched. The project has a whopping 1,042 units.

Developers might also delay some of their launches to assess the full impact of the measures, although 99-year leasehold projects from GLS sites will face more urgency to be pushed out compared with freehold ones.

Colliers International’s director of research and advisory services, Ms Chia Siew Chuin, said if the results of the next few launches are encouraging, more developers are likely to push out their projects. “There is no need for projects to sell out within a couple of weeks for developers to gauge that buying interest is still evident, so long as showflat visitor numbers and buying volume remain and hold steady,” she added.

“This would be especially so for projects in the suburban areas, where Singaporeans make up the bulk of buyers.”

Colliers noted that from 2003 to last year, the total number of uncompleted residential homes launched for sale averaged 12,036 units a year.

Buyer sentiment significantly turned for the better from 2005, when the Government announced the development of the integrated resorts.

Developers responded by launching more than 10,000 units each year from 2006 to last year, culminating in a record 21,478 units released last year. The only exception was in 2008, when the financial crisis hit.

The brisk sales of GLS sites last year means 17,000 to 18,000 units could be launched this year.

“This could be the new norm, as the Government continues to inject a strong pipeline supply of housing units into the market until such time when demand falls to more moderate levels,” said Colliers’ Ms Chia.

(Source: The Straits Times)

 
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Posted by on February 23, 2013 in Residential

 

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Home in on the suburbs

Looking to invest in real estate next year? We ask property consultants for their recommendations

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Suburban condominiums have generally fared better than those in prime districts this year, and the trend could continue into 2013.

Property analysts told The Sunday Times that their top picks for next year were mostly in the western and northern suburban regions.

Interest could also shift to districts at the city fringes.

Those who do not want city living yet want the convenience of being near the city will look to the city fringe, said DWG senior manager Lee Sze Teck.

Though the spotlight will likely be on suburban and city fringe hot spots next year, investors should not rule out homes in the prime districts despite a fairly lacklustre 2012 as economic conditions improve.

Rich investors from overseas may seek unsold units in premier locations next year to take advantage of low interest rates and excess liquidity, said Colliers International director of research and advisory Chia Siew Chuin.

Ms Chia added that signs of recovery in China and other major economies could bring more foreign buyers back into the prime market.

But regardless of the market segment, buyers should look out for homes near MRT stations and in districts where price movements have been subdued, analysts said.

These could be areas that have seen few exciting new launches but have the potential for future development.

Other factors to consider are accessibility, congestion and the uniqueness of the development, said Savills research head Alan Cheong.

Buyers should take into consideration the traffic conditions in the surroundings once all the units, both private and public, are completed, Mr Cheong said.

The Sunday Times takes a look at the property consultants’ top picks for 2013.

1 Jurong East

There is a buzz in Jurong East, now that it is firmly established as a commercial hub in the western part of Singapore.

The focus is mainly on Jurong Gateway, an area around the Jurong East MRT station, which has been jazzed up by the development of commercial sites such as the Jem and Westgate shopping malls.

The Government is keeping up the rapid pace of development in Jurong East, with the sale of a residential site to MCL Land for $369.4 million, or $705.10 per square foot per plot ratio (psf ppr), in May.

A hotel site was also bought for $238.2 million last month by Resorts World Singapore, a unit of Genting Singapore. This translates to $1,167 psf ppr, a record price for hotel land.

Mr Ku Swee Yong, chief executive of International Property Advisor, said job creation in the area is likely to be strong, which will drive up residential rental demand and capital values.

New malls built in Jurong East will create new jobs, as will hospitals such as the Ng Teng Fong General Hospital, which is under construction. Also, up to 5,000 existing jobs could move to Jurong East as government agencies relocate their premises there, Mr Ku noted.

As a consequence of the large developments there, rental demand is likely to rise as more locals and foreigners move in.

However, the downside of the rapid pace of development in Jurong East is that the area could become more congested in future as it becomes more densely populated, analysts said.

2 Alexandra

Upcoming launches are likely to boost prices in the Alexandra area, which was given a facelift several years ago by the transformation of Alexandra Canal into a waterway and park connector.

Gross rental yields here could climb as high as 5 per cent, said DWG’s Mr Lee.

The most recent condo launch in Alexandra was the 373-unit Ascentia Sky in 2009.

Upcoming launches include 508-unit Echelon along Alexandra Road, which could be launched within the next few months.

Also, two land parcels in Alexandra, at Prince Charles Crescent and Alexandra View, were sold this year.

However, prices may have already started to rise. Resale prices in the Redhill and Alexandra area have climbed 6 per cent in the third quarter of this year compared to the same period in the preceding year, Ms Chia said.

3 Woodlands

Woodlands is also designated as one of Singapore’s regional centres, but prices here have not appreciated as much as those in the other regional centres due to a relative lack of new launches recently.

Since 2011, there have been only two new launches: Woodhaven in June last year and Parc Rosewood in January this year.

But the area’s image as a remote northern outpost could change soon. One factor is the completion of the Thomson MRT line in 2019, which could drive up home prices by as much as 30 per cent, analysts said.

The three stations along the new line – Woodlands, Woodlands North and Woodlands South – will serve the residents of more than 4,300 private homes as well as those living in HDB flats, which dominate the area.

Also, Singaporeans’ growing interest in buying second homes in Johor Baru could increase cross-border activity and add buzz to Woodlands, said Colliers’ Ms Chia.

However, since Woodlands is still quite far from the city centre, not everyone may want to live there, said SLP International research head Nicholas Mak.

4 Geylang

Although it is more known for its red-light district, Geylang has been thrust into the spotlight by a slew of new launches.

At least 40 projects, yielding 2,190 units, will be launched or completed in this area in the next five years or so.

Most developments in Geylang are small. Recently completed condos include the 78-unit Casa Aerata at Lorong 26 and the 62-unit Centra Suites at Lorong 25A.

The stigma of Geylang’s sleaze factor has been holding down prices. Banks are also known to be reluctant to finance home purchases there.

However, that makes it an attractive investment option for cash-rich investors interested in yield accretion, said Colliers’ Ms Chia.

Yields are a tad under 4 per cent, which is slightly higher than the average of 2 per cent to 3 per cent for condos islandwide.

5 Potong Pasir

The Potong Pasir area is near the Central Business District and Orchard Road, and is undergoing rejuvenation.

Projects under construction in the area include Nin Residence and 18 Woodsville, and Sennett Residence and Sant Ritz will be launched next year.

There was healthy demand for a 99-year leasehold mixed-use site at Upper Serangoon near the Potong Pasir MRT station. It was sold in September this year for $793 psf ppr.

Also, the Bidadari Cemetery has been cleared and is zoned for residential use, though the exact details of land parcels have not been released yet.

However, DWG’s Mr Lee noted that Potong Pasir currently lacks retail amenities.

(Source: The Straits Times)

 
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Posted by on December 26, 2012 in Investment Tips, Residential

 

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Developers rolling out fresh projects as year ends

Liberte @ Sarkies Road - Freehold new launch next to Newton MRT

Liberte @ Sarkies Road – Freehold new launch next to Newton MRT

THE property market usually puts its feet up as Christmas and New Year approach, but this year looks to be an exception with a string of new launches planned.

Forget the school holidays and festive wind-down; developers are keen to push out their projects while the housing market is still healthy.

They have prepared landed and non-landed projects with thousands of units slated for release.

Launches that could be pushed out by the year end, market conditions willing, include The Whitley Residences in Whitley Road, Liberte in Sarkies Road, Kingsford @ Hillview Peak, Village @ Pasir Panjang, Echelon near Redhill MRT station, Michaels’ Residences in Chestnut Avenue, Trilinq in Clementi and Spottiswoode Suites in Spottiswoode Park Road.

At least three other executive condominium projects – CityLife @ Tampines, Forestville in Woodlands and The Topiary in Sengkang – are also expected this month alone.

The launches range from landed to non-landed homes, and mass market to high-end apartments, so home buyers with a range of budgets and preferences will be spoilt for choice.

Marketing materials for freehold strata-landed housing project The Whitley Residences in district 11, for instance, put prices at $850 per sq ft (psf) and above.

The Hoi Hup Realty development consists of 58 semi-detached homes of 5,199 sq ft to 7,104 sq ft and three terraced houses of between 4,801 sq ft and 6,620 sq ft.

The 700-unit suburban executive condominium project The Topiary will have units ranging from 753 sq ft to 2,476 sq ft. Prices range from $580,000 for a two-bedroom unit while penthouses are expected to fetch at least $1.28 million.

Online applications opened last Friday while sales will start on Friday.

SP Setia’s 483-unit Eco Sanctuary along Chestnut Avenue in Bukit Panjang recorded almost 200 sales since its preview two weekends ago, and is expected to be officially launched over the weekend. Prices start from $900 psf, say marketing agents.

But some developers have chosen to delay their launches until next year.

Tuan Sing Holdings’ Sennett Residence in Potong Pasir will be released next month, said chief financial officer Chong Chou Yuen, although marketing agents are already collecting interest.

He cited the slower festive and school holiday period as part of the reason for the later launch.

Sennett Residence will have 338 units comprising one- to five-bedders and penthouses. It will also have three 18-storey towers and a five-storey block with an Olympic-size pool at the top. Market watchers expect prices to start from about $1,400 psf.

Experts note that developers are keen to ride on the wave of robust new home sales this year.

Mr Lee Sze Teck, senior manager of training, research and consultancy at Dennis Wee Group, said: “Buying sentiment is still good and we are headed towards a record year of sales, so developers are keen to continue building on that momentum.”

Low interest rates are also supporting the market, he added.

There were 19,507 private homes sold in the first 10 months of this year – easily eclipsing the record of 16,292 sold in the whole of last year.

HSR Property Group special adviser Donald Han said prices at new launches are likely to plateau in the short term given the October cooling measures.

“But if you look at how land prices have been moving over the past few months, it looks like there could be further price upside for certain launches that take place in the second or third quarter next year after this period of stabilisation,” he added.

(Source: The Straits Times)

 
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Posted by on December 3, 2012 in General, Residential

 

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