URA data shows more completions put on hold

http://www.businesstimes.com.sg/sub/...64740,00.html?

Published October 25, 2008

URA data shows more completions put on hold


URBAN Redevelopment Authority yesterday gave the public greater access to data on property supply in the pipeline, particularly for private homes, detailing the expected year of completion, location of the supply by regions, and development status.

The additional information was included in URA's press release on Q3 2008 real estate data, although the information has always been available through its Realis system.

There were 66,422 uncompleted private homes from projects in the pipeline (with either provisional or written permission) as at end-Q3 2008, of which 23,008 units were in Core Central Region, 19,736 units in Rest of Central Region and 23,678 in Outside Central Region. About 51 per cent of the 66,400-plus total units in the pipeline are under construction.

URA said that 37,051 private homes are scheduled for completion between Q4 this year and end-2011. This is 20 per cent or 9,429 units lower than the 46,480 units slated for completion between Q3 2008 and end-2011 listed in URA's end-Q2 data.

Of these, 2,195 units were completed in Q3 this year and have hence been removed from the supply pipeline. Other completions have been put on hold as some developments have been postponed. Weak market sentiment and higher construction costs have also delayed the construction of some projects.

Notwithstanding this, the 66,422-unit total supply of new private homes in the pipeline is not far off from the 67,569 units as at end-Q2 2008. More of these homes may now see completion post-2011.

URA's data also showed that about 1.03 million sq m of office space, 500,000 sq m of business park space and 685,000 sq m of retail space are expected to be completed between Q4 this year and end-2011.

Projects that received provisional permission in Q3 include MGPA's office, hotel and mall development at Marina View and a 46,010 sq m retail project at Serangoon Central by a unit of Pramerica Real Estate Investors (Asia). SingTel was also given approval for additions/alterations to its existing Pickering Operations Complex and City Exchange at George St/Pickering St. The approval is for 7,860 sq m of offices and 300 sq m of shop space.

http://www.straitstimes.com/Money/St...ry_294637.html

October 25, 2008 Saturday

URA figures ease fears of housing glut

Only 8,538 new private homes to be ready in 2010 - down from 11,788 in 2nd-quarter forecast

By Joyce Teo, Property Correspondent


WORRIES about an oversupply of private homes are receding after the release of government figures that, for the first time, offer a detailed geographical breakdown of new homes in the pipeline.

It was the second straight quarter that the Urban Redevelopment Authority (URA) had lowered its forecast of home completions for 2010 and beyond.

The URA now expects only 8,538 homes to be ready in 2010 - down substantially from the 11,788 homes that it had forecast in the second quarter. Earlier, in the first quarter, it had forecast a whopping 17,545 homes.

In all, its forecast for the number of uncompleted homes in the pipeline dropped to 67,463 units in the third quarter, from 71,643 units in the second and 74,208 units in the first.

The lower supply figures would ease downward pressure on rentals, said Knight Frank's director of research and consultancy, Mr Nicholas Mak.

Earlier, concerns were building as the supply numbers remained high even as the market slowed considerably this year and the financial turmoil raged on.

The URA now expects to see 16,145 private homes completed in 2011, down from 19,559 in the second quarter.

And home completions in 2012 and beyond 2012 are now at 16,742 units and 13,565 units respectively, compared with 14,179 and 10,826 previously.

Savills Singapore's director of business development and marketing, Mr Ku Swee Yong, said the lower URA completion figures are a result of developers deferring projects due to the slow take-up rates of new homes and high construction costs.

The delays in completion dates were expected, given insufficient construction resources, completion delays in collective sales and delayed launches, he said.

Since the market turned quiet at the start of the year, many developers have delayed launches.

In the first nine months of this year, developers launched 5,401 private homes for sale - just 44 per cent of the total launches in the same period last year, said Knight Frank.

In the same period, they sold a total of 3,845 private homes, which is only 29 per cent of the sale figures in the corresponding period last year.

Yesterday, for the first time, URA released more detailed pipeline supply data, breaking down supply by the three main regions and expected year of completion. The Straits Times proposed such a breakdown in a commentary last month.

The URA made this information available separately on its website.

The data showed that there is a pipeline supply of 23,008 private homes in the core central region which includes districts 9, 10 and 11, down from 24,582 in the second quarter.

Supply in city-fringe areas such as Bukit Timah, Newton and Toa Payoh, rose to 19,736, from 19,053 in the second quarter.

As for the suburban areas, the pipeline supply fell slightly to 23,678 units, from 23,934 in the previous quarter.

According to the new URA data, just 733 homes in the core central region would be ready this year, down from the 2,363 expected in the second quarter.

While the drop next year is not dramatic, considerably fewer high-end homes will come to market from 2010 onwards.

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Coming up

Number of private homes expected to be completed:

# In 2008: 2,440

# In 2009: 10,033

# In 2010: 8,538

# In 2011: 16,145

# In 2012: 16,742

# After 2012: 13,565

# Total 67,463

SOURCE: URA